MANILA, Philippines — The House of Representatives has been urged to investigate how Clark International Airport Corporation (CIAC) incurred a huge deficit in spite of billions worth of capital infusion from bases conversion agencies.

Cagayan de Oro Rep. Rufus Rodriguez filed House Resolution No. 1974 asking the House Committee on Government Enterprises and Privatization to look into CIAC's P831.9-million deficit which was blamed on limited capital and continuous losses in its operations from 2003 to 2010, as reported by the Commission on Audit (CoA).

"The huge cash overdraft was evident in the insufficiency of the cash and cash equivalents balance of P30.28 million to cover the security deposits and advantage rentals... In the total amount of P264.7 million as year-end," Rodriguez said.

"There is a need to look into this issue and determine the viability of the continued operations of the CIAC and how the legislature can help it become profitable and improve its operation," he said.

Rodriguez expressed concern over the corporation's viability, noting another CoA report showing that CIAC works on a limited capital since its authorized capital stock was only P20 million when it was created.

To make up for the shortfall, the corporation got a P2.429-billion advance from Clark Development Corp and another P37.074 million from the Bases Conversion Development Authority (BCDA).

Rodriguez said that CIAC received the cash advances because it was a subsidiary of the two agencies, but the money could not be converted into equity.

He noted that the CIAC explained that losses were partly due to huge capital outlays or investments since 1995.