THE Department of Transportation (DOTr) filed on Monday graft complaints with the Office of the Ombudsman against several of its former officials, including then-Secretary Joseph Emilio Abaya, over the allegedly anomalous maintenance contract of Metro Rail Transit (MRT) Line 3.
Also charged were former undersecretaries of the defunct Department of Transportation and Communications (DOTC) Edwin Lopez, Rene Limcaoco and Catherine Jennifer Gonzales; former MRT general manager Roman Buenafe; and members of the bids and awards committee that gave the contract to Busan Universal Rail Inc. (Buri) in early 2016.
In a 29-page complaint, DOTr Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra said the former officials and the MRT contractor allegedly violated the Anti-Graft and Corrupt Practices Act.
The contract entered into by the then DOTC and the Filipino-Korean firm includes four components of the MRT-3 project (Project) such as maintenance of the MRT-3 Systems, general overhauling of 43 units of light rail vehicles (LRVs), total replacement of the signaling system, and additional maintenance works.
According to the DOTr, the respondents conspired to enter into a contract "manifestly and grossly disadvantageous to the government."
Yebra said the DOTr finds it anomalous that while the joint venture of Busan (Busan JV) was the one which participated in and won the bidding, the entity doing the actual maintenance works of the MRT-3, and receiving payments therefor is Buri, which is a totally different entity.
"We want to know the truth. We find it anomalous that the project was awarded to Busan JV, but the one receiving payments and doing MRT-3 maintenance works is BURI, a totally different entity," Yebra said.
He explained that the Notice of Award was issued to Busan JV on December 23, 2015.
But he noted that on the same day, former DOTr Assistant Secretary for Procurement and Bids and Awards Committee (BAC) chairman Camille Alcaraz requested the Securities and Exchange Commission (SEC) to facilitate the registration of a Special Purpose Company consisting of the members of the Busan JV for the Contract Award of the Project. Buri was later on incorporated on January 4, 2016.
"It shows that the respondents conspired and confederated with one another to enter into a contract that is grossly disadvantageous to the government," he said.
Buri is allegedly an unqualified service provider since it was a newly formed company at the time of the implementation of the maintenance contract.
The DOTr added the maintenance provider is required to have at least 15 years of "continuous experience from the submission of its offer in the maintenance of railway system."
On October 17, 2017, DOTr served a Notice to terminate its contract with BURI due to alleged poor performance, failure to put in service and subsequently ensure the availability of the contractually obligated number of trains, and it failed to put in operation reliable and efficient trains.
The contractor also allegedly failed to implement a feasible procurement plan for spare parts and to procure and store the required volume of spare parts which affected its ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system.
The DOTr also alleged the company of not complying with the contractual requirements of a complete and up to date Computerized Maintenance Management System.
Buri was given seven calendar days to respond and submit a verified position paper stating why the contract should not be terminated. After which, the DOTr shall have 10 days, upon receipt of Buri's response, to decide whether or not it will issue an Order to terminate the entire contract.
The Korean firm said it has yet to receive a copy of the complaint even as it expressed confidence "that it will be able to answer and negate any charges against the company or its officials." (SDR/YJG/VoxPop Philippines)