Court of Appeals junks PNCC appeal on SLEX franchise

MANILA, Philippines - The Philippine National Construction Corp. (PNCC) has failed to have its franchise to operate the South Luzon Expressway (SLEX) extended after the Court of Appeals (CA) refused to rule on the issue on grounds that only the Supreme Court can decide questions of law.

In 2005, Malacañang issued a temporary authority to Malaysian-owned South Luzon Tollways Corp. to rehabilitate the SLEX and collect toll from motorists using the expressway.

The state-run PNCC has asked the CA to reverse a June 23, 2008 decision of the Pasig Regional Trial Court voiding the extension of its franchise beyond April 30, 2007 and stopping it from collecting toll on the SLEX.

The CA said the PNCC petition raises questions of law, particularly the issue of whether the issuance of a toll operations certificate by the Toll Regulatory Board (TRB) is a valid exercise of a statutory right and whether the TRB and PNCC infringed on the laws on public bidding.

The CA said the PNCC raised issues that require the study, application and interpretation of the following laws:

• Presidential Decree 1112 on the powers conferred on the TRB;

• PD 1113 which granted PNCC the 30-year franchise to construct, operate and maintain toll facilities on expressways;

• PD 1893 that expanded the coverage of the franchise granted to PNCC; and

• Laws on public bidding.

“These intricacies are pure questions of law which we may want to resolve, but are beyond our authority,” the CA said.

“Where an appeal raises only pure questions of law, it is the Supreme Court which has sole jurisdiction to entertain the same.”

Records show that PNCC’s 30-year franchise lapsed in 2007 after legal issues stalled the grant of an extension by Congress.

Prior to its expiry, the TRB issued a toll operations certificate, which the PNCC deemed gave the firm the right to continue operating the expressway.

In its 2008 decision, the Pasig court ruled the toll operations certificate was invalid for violating the Constitution and the law on public bidding.

It also ruled the authority to grant or renew the franchise of PNCC to operate the SLEX remains in the hands of Congress.

The PNCC then appealed the trial court ruling to the CA.    

The CA decision was penned by Associate Justice Mario Lopez. Associate Justices Magdangal de Leon and Rodil Zalameda concurred.