Tuesday, 10 October 2017

PAL to pay the Phl gov't P6 Billion to settle a long standing debt

The Duterte administration delivers, seems to be a forgotten message to its citizenry being drowned by the 24/7 negative thrashing of opposition groups regarding his presidency.

This one Big Good News that was not really highlighted in the airwaves, and its too good to past specially now that media is flooded with all the negativity they can throw against the sitting government occupying MalacaƱan palace.

The Department of Transportation( DOTr) has accepted the Philippine Airlines’ offer to pay “in full” its unpaid obligations to the government amounting to P6 billion to finally settle its long standing debt. This after President Rodrigo Duterte in one of his speeches threatened legal action against the company. *

It took a Duterte to be president for them to pay the government - “One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte's administration,”(photo credit to Manila Bullletin news)
The President recently threatened to shut down Terminal 2 of the Ninoy Aquino International Airport (NAIA 2), which the country’s flag carrier has been exclusively using since 1999, if the airline’s owner, business tycoon Lucio Tan, fails to settle his company’s arrears.

PAL’s unpaid navigational fees and other liabilities to the government have so far reached P7.3 billion as of Sept. 26, 2017, payable to the Civil Aviation Authority of the Philippines ( CAAP )and the Manila International Airport Authority ( MIAA), according to the DOTr.

In a joint statement issued last  Friday, PAL and the DOTr said: “The DOTr has accepted the offer of PAL to pay in full the P6 billion claims of the CAAP/MIAA, and PAL commits to keep all transactions updated and current with the CAAP/MIAA.”

“One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte's administration,” they also said.

“PAL assured the government and the traveling public that it will continuously provide its vital airline operations in the service of the Filipino people.”

According to DOTr, letters were sent to the Lucio Tan-led airline company upon the instructions of Transportation Secretary Arthur Tugade as early as August 2016 "demanding full payment of all unpaid charges."  *

MalacaƱan in its statement regarding PAL’s payment "will go a long way to help build much needed infrastructure to support our economic capabilities."

"It is a clear reminder that when government prioritizes national interest citizens will cooperate," Presidential Spokesman Ernesto Abella said in a statement.

The DOTr earlier denied PAL's request to pay over ₱6 billion in arrears in seven years.

"Thus, final demand for full payment of all unpaid charges has been sent to PAL, preparatory to the filing of appropriate legal action in order to protect the interest of government," the DOTr said in its Facebook post on September 27.

PAL also initially offered the government ₱4 billion, saying only less than half or ₱3.6 billion of the ₱6.91 billion being demanded by DOTr is backed by invoices.


Report from Philstar and CNNPhilippines




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