DOJ recommends criminal raps vs PIATCO, Fraport execs

For allegedly violating the Anti-Dummy Law, the corporate officials of Philippine International Air Terminals Co., Inc. (PIATCO) and German transport company Fraport AG will face a criminal suit from the Philippine Department of Justice (DOJ). PIATCO and Fraport had an agreement with the Philippine government for the establishment of the Ninoy Aquino Terminal 3 (NAIA-3), classified as a "nationalized activity." Under Article XII of the the 1987 Constitution, and Section 1 of Presidential Decree No. 715, or the Anti-Dummy Law, a Philippine corporation involved in a national activity must have an outstanding capital where 60 percent is owned by Filipino citizens. In the establishment of the NAIA-3, only 40-percent foreign equity is allowed, "the 60-percent being reserved by the Constitution to Filipino citizens." In a resolution promulgated on Friday, the DOJ said: "In this specific case, corporate officers of Fraport and PIATCO are being made criminally answerable for allowing FRAPORT to use Philippine corporations as fronts to conceal the extent of its actual investment of shareholdings in PIATCO." More than 40 percent The Justice department said in an arbitration request to the Washington-based International Center for Settlement of Investment Disputes (ICSID), Fraport had categorically admitted that "it directly and indirectly owns 61.44 percent of PIATCO." The six-page DOJ resolution then said: "Under these circumstances, there is sufficient ground to believe that a violation of the Anti-Dummy Law was committed and there is probable cause to hold respondents for the trial." Named as respondents were: Cheng Yong, Peter Henkel, Jason Cheng, Jefferson Cheng, Rita Bonifer, S. Samin Aydin, Lilia Cheng, Hachiman Yokoi, Gil Camacho, Katherine Arnaldo, Jörg Seyffart, Marife Opulencia, Mary Antoinette Manalo, Ricardo Castro, Hans Arthur Vogel, Dietrich Stiller, and Noemy Dacanay. The DOJ resolution then ordered the Office of the Chief State Prosecutor, now the Office of the Prosecutor General, to file before the appropriate court a case against the respondents for violation of the Anti-Dummy Law. GMANews.TV tried to reach PIATCO lawyers Delfin Manuel Jr. and Cirilo Doronila of the Quasha Ancheta Peña and Nolasco law firm. However, the two lawyers are out of their offices as of posting time. Effect on arbitration case Recently, the Washington-based ICSID restored Fraport's rights to file an arbitration case against the Philippines. However, the Philippine government, through the Office of the Solicitor General, stood pat and said that in no way does ICSID's ruling make the Philippines liable to pay Fraport's compensation claims. At a news briefing on Friday, Justice Undersecretary Francsico Baraan III said that the imminent filing of the criminal suit against Fraport and PIATCO officials may work against Fraport in the case at the international arbitration body. "It only shows that Fraport was dealing in business in our country through illegal means," said Baraan. – VVP/MRT, GMANews.TV