The NAIA Rehabilitation, And A Businessman Named Raymond Moreno

The P170.6-billion public-private partnership (PPP) project to rehabilitate the Ninoy Aquino International Airport (NAIA) is being closely monitored by various sectors, given the significant amount of money involved and the strategic importance of this airport.

The NAIA rehab is arguably one of the largest and most critical projects under the Marcos administration, given its strategic importance. It is imperative that the public demands that this project be executed by companies and individuals who are professional, upright, with integrity, and of unquestionable reputation. I Photo: Ninoy Aquino International Airport Facebook

The contract with the winning private partner will initially span 15 years but can be extended by another 10 years. It will encompass all airport facilities, including its runways, four terminals, and associated infrastructure.

The NAIA PPP project, approved by the National Economic and Development Authority (NEDA) Board, aims to increase the airport's current annual passenger capacity from 35 million to at least 62 million.

The bidding for the project was open to both local and foreign parties. Four consortiums participated in the bidding, namely:

• Manila International Airport Consortium or MIAC (comprising US-based Global Infrastructure Partners (GIP) and local conglomerates Aboitiz Infracapital, AC Infrastructure Holding, Alliance Global Infracorp Development, Asia’s Emerging Dragon, Filinvest Development, and JG Summit Infrastructure Holdings);

• Asian Airport Consortium (Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders International, and PT Angkasa Pura II);

• GMR Airports Consortium (GMR Airports International B.V., Cavitex Holdings Inc., and House of Investments Inc.); and

• SMC SAP and Company Consortium (San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corporation or IIAC).

The backgrounds of the members of these four consortiums are under scrutiny, not only by the government and the business community but also by the public, particularly due to the involvement of prominent figures.

Among the notable names involved are Lucio Tan of Asia’s Emerging Dragon Corp., Aboitiz of Aboitiz Infracapital, Ayalas of AC Infrastructure Holdings Corporation, Andrew Tan of Alliance Global Group Inc., Gotianun of Filinvest Development Corp., Gokongwei of JG Summit Holdings Inc., Ramon Ang of San Miguel, and Raymond Miller Moreno of RMM Asian Logistics Inc.

In July 1985, the Washington Post and other international news outlets reported that a Federal grand jury had initiated an investigation into a $35 million contract, much of it financed by the Pentagon, to provide military communications equipment to the Philippines.

One of the subjects of the inquiry was the allocation of $6 million paid under the contract. It was suspected that Amworld, an American company incorporated in California, had diverted some of the funds to Philippine military officials.

The grand jury, sitting in Alexandria, Virginia, sought to determine whether Amworld had properly accounted for the US funds, submitted accurate documents to the Pentagon, and charged a fair price.

According to reports, the contract in question was awarded to Amworld by Gen. Fabian C. Ver, who was then on leave as chief of staff of the Armed Forces of the Philippines. Mr. Ver was a close associate and relative of then-President Ferdinand E. Marcos.

The Amworld contract was described as part of the Philippine armed forces' effort to upgrade their communications network, specifically involving microwave relay stations for the island of Mindanao.

Based on reports, Amworld was incorporated in California as a trading and contracting company at the end of 1981, less than a year before the contract was awarded.

According to Mr. Scherr, the top executive of Amworld was a Philippine businessman involved in setting up various communications systems for the Philippine armed forces and other agencies.

In December 1987, it was reported that two individuals agreed to plead guilty to conspiracy charges in Alexandria in connection with an alleged skimming operation on a $17 million Pentagon-financed military contract with the Philippine armed forces.

One of the individuals, a Filipino businessman, agreed to plead guilty before U.S. District Judge Claude M. Hilton to one count of filing a false statement with the Pentagon and one count of filing a false tax return.

The investigation also aimed to determine whether any former top officials of the Philippines were involved in or profited from the skimming operation.

Also in December 1987, it was subsequently reported that the Filipino businessman paid $1 million in fines after pleading guilty to conspiracy in federal court in Alexandria for siphoning $3 million in kickbacks from Pentagon-financed contracts with the Philippine armed forces.

This businessman also pleaded guilty to filing a false statement and a tax violation in connection with the skimming operation, which used inflated invoices from six American subcontractors to conceal the illegal payments.

The Filipino businessman at the center of the conspiracy, kickbacks, false statements, tax violations, skimming operation, and use of inflated invoices was identified as Mr. Raymond Moreno.

Now, is it merely a coincidence that the top executive of RMM Logistics, Inc., of the SMC SAP and Company Consortium led by San Miguel Holdings Corp., is named Raymond Miller Moreno?

The NAIA rehab is arguably one of the largest and most critical projects under the Marcos administration, given its strategic importance. It is imperative that the public demands that this project be executed by companies and individuals who are professional, upright, with integrity, and of unquestionable reputation.

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