Gov't gains back ownership, control of PNCC
MANILA, Philippines - The government has gained back ownership and control of the Philippine National Construction Company (PNCC) after the Court of Appeals last week reversed an earlier decision which awarded stocks of said company to Strategic Alliance Development Corp. (Stradec).
In an amended decision promulgated February 13, the Court of Appeals granted PNCC's motion for reconsideration, thereby reversing an earlier ruling wherein Stradec was awarded P7-billion worth of stocks in PNCC for damage claims.
Stradec filed for damage claims as the firm and partner Dong-A Consortium claimed to have won a failed bidding for PNCC's planned privatization back in 2000.
In the February decision, the Court of Appeals said the Privatization and Management Office (PMO, formerly Asset Privatization Trust) was correct to reject Stradec's offer of P1.229 billion as it was below the floor price of P7 billion.
"Here, the ASBR explicitly contains a reservation for PMO to reject any or all bids, including the highest bid, or to waive any defect or required formality therein... It, however, must yield to our finding that there is neither unfairness, arbitrariness nor grave abuse in the present case," the ruling read.