Pagcor statement inconsistent with contract – PAL


THE Philippine Amusement and Gaming Corporation’s (Pagcor) claim that it is not yet the absolute and registered owner of the 10-hectare property leased by the Philippine Airlines (PAL) is inconsistent with the provisions of the contract signed between the two parties, the country’s flag carrier said on Thursday.

Pagcor’s statement came out after PAL president and chief executive officer Jaime Bautista announced that PAL was willing to build a new P20-billion airport terminal at the old Nayong Pilipino area to help decongest Ninoy Aquino International Airport (NAIA).

“Pagcor stated that it is ‘not yet the absolute and registered owner of the property,’ a claim which is totally inconsistent wtih its covenants under the contract,” the airline said in a statement.

“At any rate, this statement of Pagcor is immaterial and irrelevant. Assuming for the sake of argument Pagcor is not the absolute and registered owner of the property, it can still enter into a valid contract owing to the fact that it has control and/or possession over the area and has the legal personality to do so,” the airline added.

According to PAL, on July 30, 2014, it entered into a contract of lease with Pagcor covering the property at P40 per square meter monthly rent. The contract is effective until July 11, 2033.

“PAL recognizes the role of Pagcor and reiterates its willingness to engage with Pagcor and other stakeholders in pursuit of its goal to work with government in building, developing, enhancing and upgrading airport infrastructure,” the flag carrier said.

PAL said it expects Pagcor to respect the terms of the contract.

On Tuesday, Pagcor said that PAL does not have any right to the possession of the property as the gaming regulator has no absolute authority to lease it out.

“Since Pagcor has no absolute authority to lease out the property, PAL does not acquire any right to the possession or enjoyment thereof, notwithstanding the contract of lease executed between the two parties,” Pagcor said.

“As stipulated in the contract, PAL will use the rented property as an ‘aircraft parking ramp/apron facilty’. Hence, it is prohibited from using the leased premises for any other business or purpose, including the construction of a new terminal, without prior written consent from Pagcor,” it added.


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