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PNCC: Collection of toll fees at SLEX legal

08/03/2010

The Philippine National Construction Corp. (PNCC) has said that its collection of toll fees at the Southern Luzon Expressway (SLEX) after the expiration of its franchise on April 30, 2007 is legal.

According to PNCC spokesman Atty. Chat Zamora, PNCC reiterated its full cooperation in clarifying issues linked to the toll collections in a comprehensive report submitted to Finance Secretary Cesar Purisima.

The report contained documents that show PNCC had turned over to the national government, through the Toll Regulatory Board (TRB), the SLEX facilities, equipment and toll operations three days before its franchise expired, as contained in Presidential Decree 1113.

The TRB issued a Toll Operation Certificate (TOC) effective May 1, 2007, authorizing PNCC to act as interim operator of the SLEX operations.

The TRB’s authority to issue a TOC is provided for under PD 1112.

An interim operator for SLEX was required to continue the operations since the South Luzon Tollway Corp. was still in the process of undertaking the SLEX rehabilitation and expansion.

The TRB determined that PNCC remained the most logical and capable choice.

PNCC reiterated its readiness to comply with the Department of Finance’s directives regarding funds owed to the national government in accordance with proper legal authorization, since it is accountable to more than 5,000 private minority shareholders, aside from the national government, which is the majority shareholder.

In spite of the absence of a framework for paying concession fees during the TOC period, PNCC remitted to the national government a total of P420 million from 2008 to July 6, 2010 – representing almost 16 percent of gross total revenues collected.

On the issue of unpaid concession fees estimated at P3.9 billion from 1988 to 2005, PNCC said it had offered the FOF in March the proceeds of its shares in the SLEX joint venture companies, estimated by the Privatization Council at a minimum bid value of P3.6 billion.

The corporation is also willing to liquidate, with the proper legal authorizations, other assets to fully settle the past concession fees, the report said.

PNCC, a state-controlled firm listed in the Philippine Stock Exchange, was incorporated under the corporation code as a construction company and later as a toll operation company.

Moreover, Zamora said PNCC has been restored to financial profitability since 2007, and is up to date with tax payments. He said it has paid its back taxes amounting to P125 million, and was awarded as one of the top taxpayers of Mandaluyong City in 2007.

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