Anti-dummy law case vs Mactan-Cebu airport execs dismissed

A Lapu-Lapu City court has dismissed the criminal case for alleged violation of the Anti-Dummy law filed against executives of the GMR Megawide Cebu Airport Corp. (GMCAC).

In a disclosure to the Philippine Stock Exchange on Tuesday, Megawide Construction Corp. said that it received on June 27 the Omnibus Order, dated June 14, from the Lapu-Lapu City Regional Trial Court Branch 68 “dismissing the criminal case against directors and officers of Megawide Construction Corp. in their capacity as directors of GMR Megawide Cebu Airport Corporation for the alleged violation of the Anti-Dummy Law.”

The respondents from GMCAC Megawide include Manuel Louie Ferrer, Jez Dela Cruz, Edgar Saavedra, and Oliver Tan.

GMCAC is a joint venture between Megawide and India-based GMR Infrastructure.

In 2020, the National Bureau of Investigation (NBI) filed criminal complaints against former Mactan-Cebu International Airport Authority (MCIAA) General Manager Steve Dicdican and officers of GMR Megawide Cebu Airport Corp., (GMCAC) and 11 foreign nationals over allegations that foreigners are operating the MCIA.

They are accused of violating Section 2-A of the Anti-Dummy Law, which prohibits arrangements that would allow otherwise unqualified persons to exploit properties or businesses reserved by the Constitution to Filipinos.

Megawide said that the Omnibus Order explained, among others, that the dismissal of the case was necessitated by the enactment of Republic Act. No. 11659 which was signed into law last March 21, 2022, “which clearly excluded airport operations and maintenance from the definition of a public utility; thereby removing the applicability of the nationality restriction to GMCAC in operating the Mactan-Cebu International Airport (MCIAA).”

The RA 11659 amended the Commonwealth-era  Public Service Act, which allowed 100% foreign ownership of public services in the Philippines including railways, telecommunications, expressways, airports, and shipping industries.

“Furthermore, the Omnibus Order stated that RA No. 11659 applies to the Megawide Respondents due to the retroactive effect of laws favorable to the accused,” Megawide said.

“The company has always maintained its compliance with all the applicable laws, rules, and regulations covering the Concession Agreement for MCIA, and the government's Public-Private Partnership program, since the project was officially awarded to the Megawide-GMR consortium in 2014,” it added.—AOL, GMA News