THE Court of Appeals (CA) has affirmed the ruling it issued last year enjoining the Manila International Airport Authority (Miaa) from awarding the multimillion-peso contract for advertising concessions for the Ninoy Aquino (Naia) International Airport Terminal 2 to its highest bidder.
In a three-page resolution penned by Associate Justice Ramon Paul Hernando, the CA’s Eighth Division denied the motions for reconsideration filed by advertising firm RS Concepts Inc. (RSCI) and the Miaa board of directors and its awards committee for the advertising concession of its decision issued on June 14, 2016.
In the ruling, the CA nullified the award of the contract by the Miaa to RS Concepts for failing to submit its tax clearance at the prescribed time despite having the highest proposed lease rate of P126.88 million.
“We held in our decision that RSCI was not qualified to bid in the concession, disqualified as it was by its failure to submit a compliant provisionary- tax clearance. This was a basic requirement for qualification in accordance with the Terms of Reference for the concession,” the court said.
It noted the Miaa Awards Committee had disqualified RSCI for that reason, but it was overlooked by the Miaa board.
With the nullification of the award of contract to RSCI, the CA said the contract should be given to Digichive Philippines Corp. (DPC).
“The nullification of both the bid and award of the advertising concession to RSCI is thus beyond cavil. By such nullification, it necessarily ensues that the award should be conferred upon DPC which has, in all respects, established it was the qualified bidder all along. As it was then, the grave abuse of discretion that arose from the erroneous award to RSCI was palpable,” it said
The case stemmed from the complaint filed by Digichive, which claimed that Miaa committed grave abuse of discretion when it resolved to award the concession to RCSI despite being disqualified for failing to submit its tax clearance at the prescribed time.
Digichive, the original lessee for advertising spaces at Naia Terminal 2, also bidded for the project in the amount of P101.59 million.
It said the Miaa Awards Committee initially gave RSCI an extension of one month from the bid opening on August 13, 2012, to submit its tax clearance, but failed to do so.
RSCI was given the final extension of until September 2012; otherwise, it would be disqualified.
However, RSCI was not automatically disqualified, but again given another chance to submit its tax clearance until October 6, 2012, but it still failed to meet the deadline. This prompted the Miaa Awards Committee to disqualify the latter for violation of the bidding rules.
On November 14, 2012, the Miaa Awards Committee came out with a resolution awarding the advertising concession to Digichive.
However, Digichive said it was surprised when the MIAA awarded the concession to RSCI after the latter furnished the Miaacopies of its tax clearance issued by the Bureau of Internal Revenue.
Because of this turn of events, Digichive said it was forced to seek relief from the court.
Concurring with the ruling were Associate Justices Stephen Cruz and Renato Francisco.