House to probe huge lawyers’ fees in NAIA 3 case
MANILA, Philippines—The House of Representatives will investigate the “atrociously” high legal fees amounting to $56 million (about P2.3 billion) racked up by the Philippine government in its long-running dispute with German airport operator Fraport and its local partner Philippine International Air Terminals Co. (PIATCo).
Ako Bicol party-list Rep. Rodel Batocabe said the House should scrutinize the legal fees incurred both in local and international courts during the previous administration to determine whether they were properly documented and justifiable.
Batocabe and other lawmakers were surprised to learn during a hearing of the committee on transportation and communications last week that the government had hired a battery of foreign lawyers in its dispute with Fraport-PIATCo.
“I think this should be a subject of a separate inquiry by this committee because it is unconscionable. Most of them (foreign lawyers) are not even needed because PIATCo and Fraport were represented only by local lawyers while the government was represented by a battery of international lawyers and without an end view in this controversy,” said Batocabe.
Fraport and PIATCo are contesting the government’s takeover of the Ninoy Aquino International Airport Terminal III (NAIA 3) in 2003, after the Supreme Court voided their contract and ordered the government to pay just compensation to the builders.
Fraport and PIATCo questioned the seizure of NAIA 3 not only in the local courts but also in arbitration courts in Singapore (initiated by PIATCo) and Washington (initiated by Fraport).
Article continues after this advertisementCommittee chair and Southern Leyte Rep. Roger Mercado said the government should enter into an amicable settlement with Fraport-PIATCo as soon as possible rather than spend more money on lawyers’ fees which are bound to get bigger, especially with Fraport’s plan to refile a suit before the World Bank’s International Center for the Settlement of Investment Disputes (ICSID).
Article continues after this advertisementFraport and PIATCo are demanding between $585 million and $800 million, in compensation but the government is only willing to pay $400 million which was the appraisal cost set by the Pasay City regional trial court.
Malacañang recently announced that it remained open to a settlement with Fraport-PIATCo to end the long and costly litigation. In the meantime, the government continues to steer NAIA 3 towards full operation within this year.
