SC stops Makati court from withholding toll remittances to gov’t

The Supreme Court has issued an order enjoining a lower court from implementing a ruling that barred toll road operators from remitting to the government its share in their income.

In a resolution dated Aug. 4, the second division of the Supreme Court stopped the Makati Regional Trial Court from implementing an order that prohibited the implementation of the Interim Rules and Guidelines created by the Toll Regulatory Board (TRB) and the Commission on Audit (COA).

The Makati court ruling specifically directed private toll road operators to remit collections to the Philippine National Construction Corp. as provided under their respective Supplemental Toll Operation Agreements (STOA).

Issued in 2012, the Interim Rules and Guidelines set the formula for the net income remittable by PNCC through the joint venture companies to the government.

These toll road companies include the Manila North Tollways Corp. (MNTC), Citra Metro Manila Tollways Corp. (CMMTC), South Luzon Tollways Corp. (SLTC) and Manila Toll Expressway Systems Inc. (MATES).

The lower court’s injunction order was in response to a case filed by businessman Rodolfo Cuenca, an associate of the late president Ferdinand Marcos and PNCC shareholder, in August last year against the private toll road operators.

The Supreme Court said the issuance of a temporary restraining order was necessary to protect the government from grave and irreparable damage.

According to the Supreme Court, the ruling deprives the government of income based on government’s direct ownership of the said assets.

In 2009, the SC ruled that PNCC’s toll assets and facilities, including the net income derived from these toll assets and its share in various joint venture agreements were automatically turned over to the government upon the expiration of PNCC’s franchise on May 1, 2007.

The Supreme Court then directed the Toll Regulatory Board and the Commission on Audit to finalize the implementing rules and guidelines for determining the net income remittable by PNCC to the government.

Last year, the Bureau of Treasury collected almost P800 million worth of remittances from MNTC, TMC, SLTC, and CMMTC.

MNTC operates the North Luzon Expressway, while CMMTC operates the Skyway. SLTC and MATES operate the South Luzon Expressway.

source:  Philippine Star