CA upholds ruling vs MIAA on ad concessions

MANILA, Philippines—The Court of Appeals upheld the order issued by the Pasig City Regional Trial Court stopping the Manila International Airport Authority (MIAA) from awarding a multi-million contract for advertising concessions for the Ninoy Aquino International Airport Terminal 2 to its highest bidder.

In a 26-page decision, the appeals court’s Third Division denied the petition filed by R.S. Concepts Inc. (RSCI) seeking to declare as valid the decision of the MIAA to award the contract to it for having the highest proposed lease rate of P126.88 million.

The appeals court said there is no grave abuse of discretion committed by the Pasig court in issuing a writ of preliminary injunction stopping the MIAA from awarding the contract to RSCI.

“There is a need to preserve the status quo in the case at bar pending trial on the merits to ensure that eventual award of the advertising concession to the deserving party would be free from suspicion of partiality, favoritism, unfairness and violation of the bidding rules and requirements to the prejudice of the government and the next qualified bidder,” the appeals court said,

It also echoed the ruling of the trial court that that RSCI’s opponent Digichive Philippines Corporation would suffer irreparable injury if it were ousted from NAIA Terminal 2 pending the determination of the validity of the award to RSCI.

The Court of Appeals building in Ermita, Manila. CONTRIBUTED PHOTO/COURT OF APPEALS WEBSITE

In its order dated January 3, 2013, the Pasig RTC issued a writ of preliminary injunction enjoining MIAA, MIAA Board of Directors and MIAA Bids and Awards Committee from awarding the concession to RSCI.

The case stemmed from the complaint filed by Digichive, which claimed that MIAA committed grave abuse of discretion when it resolved to award the concession to RCSI despite failure to submit its tax clearance at the prescribed time.

Digichive, the original lessee for advertising spaces at NAIA Terminal 2, also bidded for the project in the amount of P101.59 million.

It pointed out that the MIAA Awards Committee initially gave RSCI an extension of one month from the bid opening on Aug. 13, 2012 to submit its tax clearance but failed to do so.

RSCI was given the final extension of until September 2012, otherwise it will be disqualified. But despite warning, it was not automatically disqualified. Instead, it was given another chance to submit its tax clearance until Oct. 6, 2012, but it still failed to meet the deadline prompting the MIAA Awards Committee to disqualify the latter for violation of the bidding rules.

Digichive, said it was surprised when the MIAA awarded the concession to RSCI after the latter furnished the MIAA copies of its tax clearance issued by the Bureau of Internal Revenue (BIR).

“The assailed order speaks for itself with clarity. It is backed up with factual and legal basis. Hence, the public respondent RTC has not committed any grave abuse of discretion when it decided to issue the questioned writ,” the appeals court ruled.

Concurring with the ruling were Associate Justices Rebecca de Guia-Salvador and Ricardo Rosario.