"Philippine Court Orders Arrest Of Germans In Airport Project"

Thursday, February 24, 2005

Philippine Court Orders Arrest Of Germans In Airport Project


MANILA (Dow Jones)--The Philippine anti-graft court ordered Wednesday the
arrest of two German nationals included in the graft charges filed against
several former government officials for the construction of the new terminal
of Manila's international airport. 

The Sandiganbayan issued arrest warrants against Hans Arthur Vogel and Bernd
Struck, director and consultant, respectively, of Philippine International
Air Terminals Co. Inc., or Piatco, the private company that financed the
construction of the yet-to-be-opened airport terminal. 

Piatco, led by Germany's Frapot AG, won in 1997 a contract to fund the
building of a new airport terminal in Manila in exchange for a concession to
run the facility. 

After investing over $500 million and nearly completing the project,
Piatco's contract was canceled by the Supreme Court in 2003 on grounds the
company didn't have the financial capability to undertake the contract at
the time it won the project and that several amendments have been made to
the deal that had made it disadvantageous to the government. 

The Sandiganbayan issued the arrest warrants against the two German
nationals as a matter of procedure since they haven't posted bail, unlike
their Filipino co-defendants in the case. 

Government prosecutors have indicted eight transportation officials,
including three former secretaries of the Department of Transportation and
Communications, for their involvement in the award of the project to Piatco
that was deemed disadvantageous to the government.


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