Appeals court voids airport ad contract

The Court of Appeals has sustained its decision invalidating the P127-million lease contract awarded by the Manila International Airport Authority (Miaa) to a private firm for the use of advertising spaces at the Ninoy Aquino International Airport Terminal II in Parañaque City.

In its June 30 decision, a copy of which was released only on Tuesday, the appellate court’s Eighth Division maintained that RS Concepts Inc. (RSCI) was not qualified to take part in the public bidding due to its failure to present documentary requirements on time.

In dismissing the separate motions for reconsideration filed by RSCI and the Miaa board of directors, the court said the lease contract should have been given to Digichive Philippines Corp., which offered the second highest bid of P101.6 million.

Digichive had accused the Miaa of committing grave abuse of discretion when it awarded the concession agreement to its rival company.

“As it was then, the grave abuse of discretion that arose from the erroneous award to RSCI was palpable,” read a portion of the court’s three-page ruling, adding: “We held in our decision that RSCI was not qualified to bid in the concession, disqualified as it was by its failure to submit a compliant provisionary tax clearance.”

Associate Justice Ramon Paul Hernando wrote the decision, which was concurred in by Associate Justices Stephen Cruz and Renato Francisco.

In upholding its June 14, 2016 resolution, the court said the tax clearance was “a basic requirement for qualification in accordance with the terms of reference for the concession.”

“The nullification of both the bid and award of the advertising concession to RSCI is thus beyond cavil,” the court ruled.

It also pointed out that the disqualification of RSCI “necessarily ensues that the award should be conferred upon (Digichive) which has, in all respects, established that it was the qualified bidder all along.”