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abo-food-bilyo---cavitex Jul 1, 2018 @ 13:39

COA questions why PEATC’s Cavitex is virtually under control of Metro Pacific-Salim

 

The Commission on Audit has red-flagged the peculiar arrangement between the PEA Tollway Corp. and a tollway subsidiary Metro Pacific and Salim Group.

In an annual audit report, COA questioned why the state-owned company does not have a transactions record separate from Cavitex Infrastructure Corp. for their operations and maintenance contract for the 14-kilometer Manila-Cavite Toll Expressway Project (MCTEP). COA said the voting trust agreement between the two also placed PEATC under the control of the Metro Pacific-Salim group.

COA said prior to the signing of its joint venture with Cavitex in 2006, PEATC had its own record of revenues and expenses. But since its revenue sharing partnership, PEATC only gets daily remittances on the toll collections while it has no record of the disbursements made by Cavitex in running the tollway.

COA said it was not “possible” for PEATC, which has 107 organic employees, to continue this uneven arrangement “because any possible claims resulting from its operations is not reflected in its financial statements.

“It is our view that the PEATC has no other recourse but to be able to operate according to its mandate and maintain its own accounting records of the total income and expenses of the MCTEP and report its financial performance,” COA said.

COA said it would await the results of the Governance Commission on GOCC’s appeal to the Office of the Government Corporate Counsel questioning the validity of he voting trust agreement between PEATC and Cavitex.

Metro Pacific-Salim group bought bilyonaryo Luis Virata and his Malaysian partner UEM Berhad from Cavitex in a P6.7 billion deal six years ago.

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