Olongapo SubicBay BatangGapo Newscenter

Saturday, August 26, 2006

Court stops Poro Point port takeover

By Yolanda Sotelo-Fuertes
Inquirer
DAGUPAN CITY—A court in La Union on Friday stopped the Bases Conversion Development Authority and the Philippine Ports Authority from running the Poro Point seaport in San Fernando City.

The preliminary injunction, issued by Judge Robert Cawed of the San Fernando City Regional Trial Court, indefinitely extends the temporary restraining order that he issued on Aug. 10. The TRO is set to expire on Aug. 27.

The petition for the injunction was filed by the Poro Point Industrial Corp., which has a 25-year contract with BCDA to operate the seaport.

Aside from BCDA and the PPA, the injunction also covered PPA general manager Oscar Sevilla, PPA port manager Silverio Mangaoang, Transportation Secretary Leandro Mendoza and officials of the Poro Point Management Corp., a subsidiary of BCDA.

PPIC lawyer Brigido Dulay said the injunction has “the same effect as the TRO but for an extended period while there is no [final] decision of the court yet.”

“I hope they (BCDA and PPA) will abide by the court order,” he said.

He said the PPIC is ready to operate the seaport anytime.

Earlier, Malacañang ordered the temporary closure of the seaport and diverted all cargo vessels to the Subic Bay Freeport and other seaports in the country, pending the resolution of the case by the Court of Appeals.

The Department of Environment and Natural Resources stopped PPIC from operating the port after it found that the company was operating without an environmental compliance certificate.

In an eight-page resolution, Judge Cawed stopped BCDA, PPMC and the PPA from “doing any act or deed destructive... of the property rights of the petitioners in their attempt to remove the latter from the Poro Point seaport.”

Cawed also ordered BCDA, PPMC and the PPA “to allow the unhampered continuance of petitioner’s business operations in accordance with the existing contract.”

Cawed also warned that efforts by BCDA and PPMC to remove PPIC from the seaport facility “verges on arbitrariness.”

The court also said it was convinced that “the status of the petitioner (PPIC) before the conflict should be maintained. These include the possession of the premises and the unhampered operation of the seaport by PPIC.”

Earlier, the Office of the Government Corporate Counsel upheld the validity and legality of the BCDA-BHI agreement following three reviews. The legal departments of BCDA and PPMC likewise upheld the legality of the deal despite alleged political pressure to reverse the findings as disclosed by BCDA general counsel Arnel Casanova.

Filadelfo Singson Rojas and Felix Singson Racadio, PPMC chair and president, insisted in passing a board resolution last month declaring the agreement void.

BCDA president Narciso Abaya said, however, that the BCDA board had refused to ratify the PPMC resolution. Abaya said the BCDA-BHI deal is valid unless a court declares otherwise.

Government corporate counsel Agnes Devanadera also said the OGCC has not reversed its earlier position that the agreement is legal and binding.

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