‘GOCC suing Cavitex operator lacks authority’

‘GOCC suing Cavitex operator lacks authority’

MANILA, Philippines — The Metro Pacific Tollways Corp. (MPTC) has scored a state-owned firm for dragging one of its units to court without going through the proper authority in lodging a complaint.

The MPTC is challenging the legality of the case filed by PEA Tollway Corp. (PEATC) against Cavitex Infrastructure Corp. (CIC), operator of the Manila-Cavite Expressway (CAVITEX).

CIC, a subsidiary of the Pangilinan-led MPTC, holds the concession to operate and maintain CAVITEX through a joint venture with the Philippine Reclamation Authority (PRA) and its unit, PEATC.

In a statement, MPTC said that PEATC should instead name its parent agency PRA as one of the respondents given its role in handling CAVITEX. MPTC said PEATC officer-in-charge Dioscoro Esteban Jr. is circumventing proper authorities in filing the petition.

“The petition against the CIC was filed by Mr. Dioscoro Esteban Jr., officer in charge of PEATC, who lacks authority of the PRA or of the PEATC Board to file such a petition,” MPTC said.

Furthermore, PEATC failed to secure the endorsement of the Office of the Government Corporate Counsel (OGCC) in its case. The OGCC represents the legal interests of government-owned and controlled corporations like the PEATC.

“With the project being a joint venture with the PRA, any legal dispute involving the CIC should have rightfully included PRA as an indispensable party,” MPTC said.

In all, MPTC is dismayed that the PEATC has opted to go to court even when the company has invited the agency for a dialogue to negotiate and resolve their issues.

PEATC is seeking a writ of mandamus from the Court of Appeals to remove the right to manage CAVITEX from CIC. In the process, PEATC is requesting the court to allow it to take over the expressway, including its toll collection business.

If issued, the writ will also require CIC to turn over all of its contract services to the PEATC. The PEATC said CIC’s authority to operate CAVITEX has already expired, warning the government that it is bound to lose revenue if it permits CIC to continue running the tollway.

In its petition, PEATC alleged that the government lost as much as P2.4 billion in 2023 to CIC.

According to the website of the Toll Regulatory Board, the concession period for CAVITEX will last for 30 years between October 1, 1998 and September 30, 2033.