Can of worms 2,3,4, etc.

Can of worms 2,3,4, etc.

Updated 10:42pm (Mla time) Nov 08, 2004
By Juan Mercado
Inquirer News Service



Editor's Note: Published on page A12 of the November 9, 2004 issue of the Philippine Daily Inquirer.


MARCELINO Corodova, manager of the Mactan-Cebu International Airport Authority (MCIAA), wrote the Inquirer objecting to this column's "A can of worms." (Oct. 14, 2004)

The apologia glosses over "worms" the Commission on Audit (CoA) pinpointed. These included its failure to tally P1.4 billion worth of MCIAA properties, P90.2 million uncollected debts and Lapu-Lapu City's claim for P1.08 billion in "unpaid real estate taxes."

"The report is a year old," MCIAA spinmeisters ghostwrote to the paper to hide embarrassing facts with spin. It's "for the history books."

Facts: Auditors completed that report in February. The CoA sent it to the board on March 11, 2004. This is, therefore, the current audit. The next audit report will come early next year.

The Inquirer and Cebu Daily News revealed the CoA findings in mid-October. Until then, even MCIAA employees were kept in the dark, including the auditors' blunt conclusion that MCIAA books "do not present fairly the financial position of the airport."

More facts: As of Aug. 31, 2004, the CoA revealed, the MCIAA was one of 14 agencies that didn't submit adequate reports. Thus, its annual five-volume "Financial Report" for the whole government went to press without the airport's statement. Can of worms No. 2?

Still more facts: "Volume II-B" points out that the MCIAA's "Summary of Discretionary, Representation, Extraordinary, Promotional, Confidential and Consutltancy Expenses" is missing. Transparency is not this board's strong suit. The Inquirer had to rip their blackout curtain again.

The "big ticket" items, however, are elsewhere, including mounting debts. For over 11 years, the board waffled on wringing a definite ruling from the Bureau of Internal Revenue (BIR) on whether Philippine Airlines (PAL) is exempt from value-added tax. Thus, PAL's uncollected debts last year added up to P18.2 million.

"Perhaps, the [Inquirer] columnist should ask the BIR if it has resolved this decade old issue," the MCIAA suggests. This is buck-passing. It's not a newspaper's job to wring decisions on airport taxes, that's the board's. Its refusal to do so for over a decade constitutes gross dereliction of duty. Others have been cashiered for less.

PAL and Waterfront Hotels were exempted from the automatic two-percent surcharge for delayed payments, the report revealed. Why? Smaller concessionaires must pay, no questions entertained.

Do board members craft one policy for companies of cronies and another for small fries? Selective sanctions show that between cronies and board members, as Thomas Jefferson wrote, "the whole commerce is between master and slave ... the most unremitting despotism on one hand, and degrading submission on the other."

This board's history is one of subservience to the powerful. That's why we recalled that board members Pablo Garcia, Valeriano Avila and others supinely heeded President Fidel V. Ramos and bought a $7.86-million Bell 412 EP helicopter, although they were warned by then finance officer Josefina Villasin that the bill could bankrupt the airport.

That "happened eight years ago and is history," the MCIAA said. No, it's not. That weak-kneed decision strapped a monthly bill of $80,337 (or P3,384,154 at the exchange rate then). The drain continued until Malacañang, which used the helicopter exclusively, bailed out the MCIAA.

But "the evil that men do lives after them." It's affecting payment of employees' benefits today. Why is the MCIAA burdened with a budget deficit? asked MCIAA employees mutual association president Edgar Bongayon. Only partial benefits have been paid.

For suggesting there were other cans of worms, the board snapped that the Inquirer columnist is "hung up" over policies that dictators had left behind. Sorry about that. But all despots stick in my craw.

But are board members better for coddling interests of political and economic overlords? They've shredded civil service rules on qualification for general manager to accommodate their proxies. Airport contracts, X-ray machines, fire trucks, especially the repair of Mactan's dilapidated runway, will be future cans of worms.

In August 2000, Japan Air Consultants warned the MCIAA about the runway's deterioration. PAL's flight operations chief, Captain Johnny Andrews, wrote in May 2002: "Our technical evaluation confirmed that it is in an advanced state of deterioration and poses a hazard to aircraft operations."

Accidents have occurred since then. A PAL 737's tires exploded on touchdown in August 2002. A Cebu Pacific DC-9's tires were ripped during a September 2003 landing. And in February 2004, a Qatar jet had its tires zapped. No lives were lost. But we may not be as lucky next time. Officials, who deny links to politically wired construction firms, but roll dice for airport contracts, play with lives.

Can of worms No. 3 is in an Ombudsman case over a partial P7.9-million runway "rejuvenation." Why was the bids and awards committee excluded? the CoA's Roy Ursal asked. The audit report brands as "irregular" the release of P7,470,476 for 14,534 gallons of rejuvenator. Can of Worms 4, 5 and 6 may be in those contracts for fire trucks, X-ray machines, etc.

The CoA never recommended filing of graft charges against anyone, the MCIAA insists. So, we erred by claiming that "thieves masquerade as MCIAA friends."

Only what is illegal is wrong? The Pharisees taught as much. But subservience, stripped of conscience, is subtle larceny. The common good can be savaged by those sporting a halo. "Balang sulug may buwaya," Tausugs say. There's a crocodile in every river.