DOTr Files Plunder Vs Roxas, Abaya ET Al

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Yesterday, November 21 2017, the Department of Transportation filed charges of plunder against officials of the previous Aquino administration for the MRT3 mess.

We wanted to know what this contains and how this administration plans to pursue this case.

So we took their press statement and are posting it here to avoid misrepresenting it.

The statement below:

DOTr Press Release

21 November 2017

DOTr Files Plunder Case Against Roxas, Abaya, for MRT-3 Contract

Metro Manila — The Department of Transportation (DOTr) today filed a Complaint for plunder and violations of the Anti-Graft and Corrupt Practices Act and the Government Procurement Reform Act, against former Transportation Secretary Joseph Emilio Aguinaldo Abaya, and former Department of Interior and Local Government (DILG) Secretary Mar Roxas, for the procurement of several goods and services by then Department of Transportation and Communication (DOTC), now DOTr, including the DOTC MRT-3 System Maintenance Provider, general overhauling of 43 Light Rail Vehicles (LRVs), total replacement of the signaling system, and additional maintenance works.

Aside from Abaya, named respondents in the Complaint include former transportation undersecretaries Erwin Lopez, Rene Limcaoco, and Catherine Gonzales; former MRT-3 general manager Roman Buenafe, former DOTC Bids and Awards Committee (BAC) members, and executives of the BUSAN Universal Rails Inc. (BURI), and Mr. Marlo Dela Cruz.

Also included in the charges are former secretaries Florencio Abad (DBM), Cesar Purisima (DOF), Jericho Petilla (DOE), Mario Montejo (DOST), Voltaire Gazmin (DND), Rogelio Singson (DPWH), Arsenio Balisacan (NEDA).

The former cabinet secretaries, including Roxas, were all members of the Government Procurement Policy Board (GPPB) when the MRT3 maintenance service contract was signed.

Based on the Supplemental Complaint Affidavit filed by DOTr Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra, Assistant Secretary for Procurement Giovanni Lopez, and Atty. Mark Steven Pastor, the respondents conspired to “use the MRT 3 Project as a fundraiser,” and “turning the DOTC as a bottomless cash cow, entering into one anomalous procurement project…”.

The complainants noted that respondents facilitated the negotiated procurement of long term maintenance contracts to BURI, amounting to almost PhP 4 billion, after two failed biddings –one in Oct. 28, 2014 and the other in Jan. 20, 2015.

However, after thorough review of documents, DOTr found that instead of entering into negotiated/emergency procurement for the System Maintenance Provider alone, DOTC inserted other projects such as general overhauling of 43 Light Rail Vehicles (LRVs), total replacement of the signaling system, and additional maintenance works, which were not originally part of the project that resulted into two failed biddings, and should have been done through competitive bidding.

According to the complainants, the additional items included in the project, in addition to the MRT-3 System Maintenance Service Provider, should have been bidded out separately, as there is no justification for including the same in the negotiated procurement.

For his part, DOTr Secretary Arthur Tugade said that the filing of the plunder complaint was made to make concerned persons accountable for the issues plaguing the MRT3.

“Nag-file tayo ng kaso para mapanagot ang mga taong tumulong o may kinalaman sa problemang kinakaharap natin ngayon sa MRT-3,” Secretary Tugade said.

Sec. Tugade likewise added that the DOTr is currently pursuing multiple options for getting a competent, qualified, and experienced maintenance service provider for the MRT-3 in the short- to medium-term.

The DOTr already granted Original Proponent Status to the proponent of an Unsolicited Proposal for the rehabilitation, operations and maintenance of MRT-3 to solve the historical fragmented approach of running MRT-3 (separate owner, different maintenance provider, and different operator), which has contributed to the system’s current condition.

The proposal, once implemented, is expected to restore MRT-3’s reliability and double its capacity in the medium- to long-term.

The DOTr reassures the public that it is determined in its commitment to restore convenience and reliability for the 500,000 daily riders of MRT-3.

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