DOJ indicts Megawide, Indian partner execs over anti-dummy law

The Department of Justice (DOJ) has indicted top officials of GMR-Megawide Cebu Airport Corporation (GMCAC) and former Mactan-Cebu International Airport Authority (MCIAA) general manager Steve Dicdican for allegedly violating the anti-dummy law.

In a case briefer sent to reporters by DOJ spokesperson Emeline Aglipay Villar, the DOJ maintained that the management, control, and operation of the GMCAC, the operator of the Mactan-Cebu International Airport (MCIA), should be reserved for Filipino citizens.

It said that the GMCAC is considered a public utility corporation.

The case stemmed from a complaint filed with the National Bureau of Investigation, in relation to the awarding of the 25-year operations and maintenance contract to Megawide Construction Corporation and its Indian partner GMR Infrastructure Limited for the MCIA in 2014.

The case briefer named Megawide chief executive officer Edgar Saavedra, executive director for infrastructure Manuel Louie Ferrer, GMR Group chairman Srinivas Bommidala, along with two other Filipino officials and 10 foreign nationals.

The DOJ also indicted Dicdican for “knowingly assisting, aiding and abetting the commission of a violation of the anti-dummy law.” Dicdican was suspended by the Ombudsman in December 2020, with him calling the charges “obviously politics.”

In a statement sent to Rappler, Megawide reiterated that it followed applicable laws.

“[W]e will respond to this case in the proper fora, and do so successfully. Megawide and its subsidiaries have always been and continue to be firmly adherent to all applicable laws, rules, and regulations, particularly regarding public-private partnership projects such as the Mactan-Cebu International Airport,” it said.

Megawide-GMR had already sealed its foothold in the airport industry in the Philippines when it bagged key airport projects – the MCIA, which was known for its iconic terminal, as well as the recently-constructed terminal at the Clark International Airport.

But the embattled company appeared to be at odds with the government.

At the height of the alleged anti-dummy law violation, the Manila International Airport Authority also revoked the proponent status awarded to Megawide-GMR to rehabilitate the Ninoy Aquino International Airport over equity issues. Megawide maintained that there should not have been an issue. – with reports from Aika Rey/Rappler.com