The Supreme Court (SC) on Monday ordered the Department of Transportation and Communications (DOTC) to answer the petition filed by a militant group questioning the privatization of the Light Rail Transit (LRT).
The High Court gave the executive department 10 days to submit its comment. This will determine if the tribunal will grant the plea of the militant groups for the issuance of a stay order against the government’s plan to privatize LRT.
In a petition for certiorari and prohibition, the Bagong Alyansang Makabayan (Bayan) questioned the concession agreement between the DOTC and the winning bidder, winning bidder Light Rail Manila Corp. The petitioners, who include Bayan Muna Rep. Neri Colmenares, commuter group Train Riders Network, Courage chairman Ferdinand Gaite and Riles convenor Sammy Malunes, claimed that the agreement is disadvantageous to the public and illegal.
Bayan said under the agreement, the winning bidder can increase fares every two years and if it failed to collect such fare increase, the government will shoulder the deficit payment.
The contract shall be in effect for 32 years.