Metro Pacific denies allegation it tried to 'derail' MRT-3 operations

Tycoon Manny V. Pangilinan’s Metro Pacific Investment Corporation (MPIC) denied allegations that it tried to block the government’s efforts to improve infrastructure, particularly in the MRT-3 railway system. In an open letter to the public posted on the Philippine Stock Exchange website, MPIC “wished to correct wrong assertions” about how the company was an impediment to the smooth operations of the MRT-3. MPIC’s letter was in response to Philippine Daily Inquirer columnist Neal H. Cruz’s allegations that MPIC-designated directors in the Metro Rail Transit Corporation (MRTC) led by Marilyn Aquino and Jose Maria Lim "derailed" MRT-3 operations by “vigorously objecting” to the hiring of a temporary maintenance provider for the MRT-3. In the column, it was also alleged that MPIC instead pushed for a one-year extension of the maintenance agreement with Sumitomo Corp. In Cruz’s column, he noted that the government subsidizes the agreement with Sumitomo with $2.1 million of taxpayers’ money monthly. He also mentioned Sumitomo’s “outrageous demands” such as having its subcontractor, TES-Philippines, be exempt from any liabilities or penalties in cases of train failures. Also according to Cruz’s sources, Aquino said the existing maintenance agreement with Sumitomo should be retained since the MRTC was “already familiar” with the agreement’s provisions, despite having knowledge of the disadvantages to the government. In the open letter, MPIC explained that in the MRT-3 maintenance meeting on Oct. 3, MPIC through Lim said the company has no interest in retaining the services of Sumitomo, or extending the contract with it. The statement noted that Lim said this to MRT-3 general manager and DOTC representative to the MRTC Al Vitangcol III as early as the start of the meeting. MPIC also said in the meeting, Vitangcol advised the MRTC that the DOTC also did not wish to extend the contract with Sumitomo beyond October 19, and requested the MRTC to appoint a new maintenance provider within two weeks. However, citing logistical reasons, MPIC said the MRTC did not agree that it should be the one to look for the new maintenance provider, since it has been the DOTC’s responsibility since November 2010. “The MRTC Board did not oppose the decision of DOTC not to extend the Sumitomo contract but, by a unanimous vote, declined the request of DOTC that MRTC handle the solicitation of the new interim maintenance provider,” MPIC said. “MRTC is not abdicating its responsibility to maintain MRT3 but the DOTC left MRTC with no choice but to have DOTC take responsibility for the interim period,” it also said. MPIC said it supported the Aquino administration’s efforts to pull in investors to support infrastructure projects that the Philippines “direly needs.” “Through this open letter, MPIC hopefully puts to rest doubts about the Group’s 100% commitment to the government’s infrastructure-building initiatives,” it also said. — Gian C. Geronimo/BM, GMA News