DOJ: DBM, COA to decide on use of unrefunded MIAA passenger charges

The Department of Justice (DOJ) left it to the Department of Budget and Management (DBM) and the Commission on Audit (COA) to decide on the usage of unrefunded passenger service charges (PSCs) and airline tickets held by the Manila International Airport Authority (MIAA).

In an opinion dated July 25, 2023, Justice Secretary Jesus Crispin Remulla said the queries made by the MIAA regarding the remittance and allocation of government funds and income fall under the DBM, while the usage of government funds will be dealt with ultimately by the COA.

“Sound administrative practice, more than official courtesy, demands that the DBM and the COA should be accorded first the opportunity to consider and resolve the issue presented,” the decision read.

“This time-honored policy is dictated not only by practical consideration but out of due respect and deference for the competence, expertise on, as well as familiarity with, the policies relating to the subject and the rightful exercise of jurisdiction by a co-equal and coordinate branch of government,” it added.

The opinion was made after MIAA, headed by general manager Cesar Chiong, sought guidance on some P1.2 billion of unrefunded PSCs, of which only P26,000 were claimed for refund as of March 31, 2023.

In his opinion, Remulla said that while the unrefunded PSCs are considered government funds, these are held by MIAA merely as custodian to address the refund claims, and as a trustee on behalf of the passengers, and therefore not free to unilaterally utilize such funds.

“This Department recognizes the need to upgrade the MIAA’s facilities. For this reason, it is suggested that the MIAA seek the opinion of the DBM or the COA on this matter,” he said.

The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand “Bongbong” Marcos Jr., earlier this month opted to push through with plans to privatize NAIA through a solicited bid with the upfront payment cost now being studied and initially estimated at P30 billion.

This comes after the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA) in June submitted a joint proposal to the NEDA Board seeking a private concession to invest and improve the NAIA for 15 years. — DVM, GMA Integrated News