Airline firms lagged in remitting dues to govt

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THREE private airline companies either failed or were delayed in remitting their aviation security fees (ASF) to the Office of the Transport Security (OTS), the Commission on Audit (COA) said.

According to the Audit agency, Cebu Pacific, Air Philippines and Philippine Airlines (PAL) either totally failed or were delayed in remitting the security fees to the OTS, which could have been used for government programs.

By procedure, the Civil Aviation Authority of the Philippines (CAAP) collects the security fees from airline companies on behalf of OTS.

“For whatever amount of the check remitted by the airline companies to CAAP,” the government then issues official receipt and deposits the cash to the Bureau of Treasury.


The security fees are used for priority projects and programs, COA said.

According to the audit team, as of 2012 yearend, Air Philippines and Cebu Pacific failed to remit their ASFs, despite due date on November 21 to 22, 2012.

The two companies already failed to remit the ASF between 10 to 39 days.

Meanwhile, PAL remitted ASFs covering October 2011 to November 2012, which ranged from P1.2 million to P2.6 million.

The 12-tranch payment totalling P25.5 million were only made between January and August 2012, but the former state airline company had not yet remitted its ASFs for March and November 2012.

The Commission said that PAL was delayed in its remittance between 10 days to 262 days. The October 2011 remittance was only paid in August 2012.

“Further verification and inquiry disclosed that the collections from the airline companies were not supported with documents and computations to ascertain the correctness of the amount received by CAAP,” the report pointed out.

It added that the delayed or non-remittance of the ASF “deprived the government of the immediate use of such income for priority projects or programs.”

COA asked the OTS to urge CAAP to require the timely remittance of ASFs from the airline companies and to provide supporting documents to ascertain the correctness of remitted fees.

Service fee

The income of the OTS could have been higher by almost P20 million it barred the Ninoy Aquino International Airport (NAIA) to impose a five-percent withholding service fee from terminal fees, COA added.

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