Philippine Ports Authority chief Jay Daniel Santiago on Wednesday said he would not recall the order issued by then PPA officer-in-charge and assistant general manager for operations Raul Santos disallowing Manila North Harbour Port Inc. from operating as international port and prohibiting foreign vessels from docking at Manila North Harbor.
“Santos’ memorandum order stands. Unless the courts will issue a temporary restraining order, then the Santos memorandum stays,” said Santiago during his first informal meet and greet with the press at the PPA building.
Santiago said the PPA will leave it up to the courts to decide on whether or not Santos’ memorandum order rebuffing former Customs Commissioner Alberto Lina’s memorandum was “in order.”
He said the PPA would defer from commenting on the MNHPI’s demand to lift Santos’ order since the case is now in court.
He said the PPA would deal with the MNHPI through the courts and file its formal comment with the courts.
The MNHPI lodged a case against Santos and the PPA with the Ombudsman, demanding that a Temporary Restraining Order be issued against Santos’ order.
“The case is now in court [Ombudsman] and we are no longer at liberty to discuss the issue. PPA’s position is to file [the necessary comments] in court and we have 15 days to file an answer. PPA response will probably fall on July 20 or 21,” Santiago said.
“The court will decide on whether to revoke Santos’ [Memorandum Order 08-2016]. If the court says the Santos memo is legal, it was in order and was issued in accordance with law, then we have to respect it, we have to enforce it, the memo stays. If illegal, the court has its own interpretation, the MNHPI also has its own interpretation and I have mine,” Santiago said.
Asked if this would mean another exchange of memos between the PPA and the BOC, Santiago said the PPA would make known its position on July 20.
Meantime, he said, the PPA would enforce the status quo.
“The Santos memo stays but we wait for the court’s ruling. I am not at liberty to discuss the PPA’s position. We wait until the formal comment is filed or until the court says otherwise,” he explained.
The PPA on June 21 rebuffed Lina and directed its port management office in Manila North Harbor to disallow the MNHPI to operate as an international port operator citing MNHPI’s “exclusive” domestic port contract with the PPA.
Santos had called the attention of Lina, who also sat in the board of the PPA, that the former Customs chief’s series of memoranda and administrative issuances will place the MNHPI in direct violation of its terminal contract with the PPA should MNHPI handle foreign cargo.
In a memorandum order issued on June 21, 2016, Santos issued the directive in response to Lina’s June 2, 2016 Customs Memorandum Order (CMO)12-2016 allowing MNHPI to engage in international trade.
Santos’ memo, on the other hand, directed all shipping lines and shipping agents to not avail of the services of MNHPI as doing so would impair MNHPI’s contract with the PPA.
Despite having no authority, Lina granted the NMHPI the Authorized Customs Facility or ACF to engage in international trade because Lina admitted NMHPI owner businessman Ramon Ang was a “friend.”
Lina insisted his memorandum in favor of Ang was not a “midnight deal” as “I would grant him an ACF even if it’s my last day in office or last minute in office on June 30.”
Santos reminded Lina that the Manila North Harbor has always been known and was treated as a domestic port as mandated by Presidential Decree No. 857 or the Revised PPA Charter.
“MNHPI’s contract was the result of a competitive public bidding in 2009 were the terms of the bid parameters limit the cargo handling operations to domestic cargo only,” Santos pointed out.
Santos’ order, PPA Memorandum Order 08 – 2016 dated 21 June, was issued to the Manila North port manager, harbor pilots, and all shipping lines and shipping agents.
“Section 4.02, Article IV of the Contract for Development, Management, Operation and Maintenance of the Manila North Harbor between the PPA and MNHPI expressly provides that MNHPI shall provide to undertake DOMESTIC terminal services only at the Manila North Harbor,” the PPA memo said.
“In view of this contractual limitation, MNHPI is prohibited from providing terminal services to foreign vessels at Manila North Harbor. Accordingly, foreign vessels cannot proceed to Manila North Harbor for purposes of anchorage and/or docking at its berth and unloading of their cargoes, among others,” it added.
Under its charter, PPA is the sole regulator over the ports.
PPA took its position requiring NMHPI to ensure fair and efficient capacity for domestic trade seriously.
Santos’ memo prompted the MNHPI to petition the court for a TRO and filed graft charges against PPA officials allegedly for being “biased” against MNHPI.
The exchange of memos between the PPA and BOC stopped on June 30, 2016 when Lina was replaced by President Rodrigo Duterte with former soldier-rebel Nicanor Faeldon as BOC chief.