'Government should explain P8.5-billion SLEX project hike'

MANILA, Philippines - A private lawyer asked the Supreme Court yesterday to look closer into the South Luzon Expressway project and compel its private operator and the government to account for the alleged multibillion peso discrepancy in the contract amount declared.

Lawyer Ernesto Francisco Jr. also asked the High Court to junk a motion seeking to lift the temporary restraining order issued last month on the 277-percent increase in SLEX toll fees.

He said Malaysian firm MTD Capital Berhad, which owns 80 percent of South Luzon Tollway Corp. (SLTC), had declared in 2006 that the project involving the construction and development of four toll roads on SLEX would cost P8.5 billion.

The project, which would be paid through equity and loans, was signed with the Philippine National Construction Corp. (PNCC), which owns 20 percent of SLTC, and the Toll Regulatory Board (TRB).

But in a manifestation seeking to lift the TRO, the SLTC declared that the project cost ballooned to P10 billion covering only two of the four projects.

“Based on the foregoing, the discrepancy in the cost of the SLEX Project runs into billions of pesos. Petitioner respectfully submits that private respondents SLTC and PNC and public respondent TRB should be made to account for such huge discrepancy and that this matter should be investigated to determine possible criminal and administrative liability,” Francisco said.

An affidavit submitted by SLTC’s treasurer June Salwah Hassan revealed that three of the four project toll roads cost P12 billion.

“(Hassan) further claimed that the P12 billion was sourced from loans from the Malaysian Banking Berhad and advances and equity and that there is an immediate risk of default by MTDME on its loan which only goes to show that MTD Capital Berhad did not actually have the financial capability to undertake the project and that it would rely on the exorbitant toll fees it will charge the Filipino motoring public to pay its debts and finance the completion of said projects,” Francisco said.

Francisco said the apparent discrepancy should give the SC justification to stop the project and declare it illegal.

Francisco was one of the five petitioners who questioned the planned toll increase saying it would be “detrimental to the welfare of the public.”

He also argued that the TRB committed grave abuse of discretion in entering into the tollways contract without public bidding.

Motorists driving Class 1 or light vehicles or vans through Alabang in Muntinlupa City to Calamba, Laguna will have to pay P77 from the current P21 once the new rate is implemented.

Class 2 vehicles or light trucks and buses will be charged P155 from P43, and Class 3 vehicles - heavy and multi-wheeler trucks - P232 from P65.