For imposing steep increases in airport charges supposedly as part of the airport privatization program, another Cabinet man - Transport Secretary Jaime Bautista - is said to have made the President furious because such a plan was not approved by the Cabinet.
His protege, Undersecretary for Aviation and Airports Bobby Lim, could also lose his shirt due to this issue.
The Department of Transportation (DOTr) is now facing an intense probe over its handling of the Ninoy Aquino International Airport privatization process following allegations it had bypassed a critical approval step involving the Cabinet, reported business blog site Bilyonaryo.
Bautista and his long-time protege in Philippine Airlines, Bobby Lim, are at the center of the storm after it was revealed that the steep increases in airport charges were rolled out as part of the NAIA privatization plan without the green light from the Cabinet.
The report said President Ferdinand "Bongbong" Marcos, Jr. was "furious" and demanded explanations as to why the fee hikes were not presented to the Cabinet for approval, as dictated by standard government protocol.
Both Bautista and Lim are facing heightened scrutiny over their involvement in the decision-making process.
Bilyonaryo said the President refused to meet with Lim when the latter attempted to discuss the airport fee hikes at Malacañang.
The increases — 95 percent for domestic flights (raising fees to ₱390) and 171 percent for international travelers (now ₱950) — were supposed to take effect ahead of the September 14 takeover by the consortium led by San Miguel Corporation (SMC), headed by billionaire Ramon S. Ang, in partnership with Incheon International Airport.
The DOTr had tasked the Asian Development Bank (ADB) with drafting the terms of reference (TOR) for the NAIA privatization.
However, the study was reportedly based on a tabletop analysis, lacking direct consultation with key stakeholders.
The ADB is said to have benchmarked airport rates and land valuations against international standards, which became the basis for the TOR given to all bidders, Bilyonaryo added.
“The problem lies with the rates,” said a Bilyonaryo source who requested anonymity.
“By protocol, these should have been reviewed and approved by the Cabinet Committee before proceeding. Instead, the DOTr moved forward with the bidding process without proper oversight. In that sense, may problema talaga yung rates.”
Seven months after the DOTr awarded the ₱170.6-billion contract to SMC, the rates remain under review.
SMC secured the contract to operate, maintain, and upgrade NAIA by offering a bid that allocates 82.1 percent of the airport’s revenue to the government.
The SMC-led New NAIA Infra Corp. (NNIC) announced on September 26 that the proposed increase in passenger service charge would be implemented in September 2025.
Bautista was president of PAL from 2004 to 2012 and 2014 to 2019.
Lim is part of the PAL clique which joined him in DOTr.
Lim used to be PAL’s general counsel and corporate compliance officer under Bautista.