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Vitangcol, 5 others indicted for $1M-a-month MRT deal
By ELIZABETH MARCELO, GMA News
(Updated 5:07 p.m.) Ombudsman Conchita Carpio Morales has ordered the filing of graft charges against former Metro Rail Transit 3 General Manager Al Vitangcol III and five incorporators of Philippine Trans Rail Management and Services Corporation in connection with alleged irregularities in the MRT-3's interim maintenance contract.
In a 39-page resolution, Morales found probable cause that Vitangcol, Wilson De Vera, Marlo Dela Cruz, Manolo Maralit, Federico Remo and Vitangcol’s uncle-in-law, Arturo Soriano, presently the provincial accountant of Pangasinan, conspired to irregularly award the MRT3 contract to the PH Trams-CB&T joint venture.
The resolution held that Vitangcol used his power and authority as general manager and chief end-user, head of the negotiating team, member of the Bids and Awards Committee (BAC), all in one, “to dictate the proponents invited for the preliminary negotiations” of the maintenance services and “intentionally hid his [affinitive] relationship with Soriano, which would have automatically disqualified PH Trams.”
In a 39-page resolution, Morales found probable cause that Vitangcol, Wilson De Vera, Marlo Dela Cruz, Manolo Maralit, Federico Remo and Vitangcol’s uncle-in-law, Arturo Soriano, presently the provincial accountant of Pangasinan, conspired to irregularly award the MRT3 contract to the PH Trams-CB&T joint venture.
The resolution held that Vitangcol used his power and authority as general manager and chief end-user, head of the negotiating team, member of the Bids and Awards Committee (BAC), all in one, “to dictate the proponents invited for the preliminary negotiations” of the maintenance services and “intentionally hid his [affinitive] relationship with Soriano, which would have automatically disqualified PH Trams.”
Under the contract, the MRT was set to pay PH Trams $1.15 million monthly for the maintenance of MRT 3.
The Ombudsman said it was also established that the PH Trams incorporator Arturo Soriano was an uncle of Vitantgcol’s wife.
Aside from the graft charges or violation of Sections 3 (e) and 3(h) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, Vitangcol was also ordered to be charged for violation of Section 65 (c) (1) of Republic Act 9184 or the Government Procurement Reform Act.
The Ombudsman, however, did not include Transportation and Communications Secretary Joseph Emilio Abaya in the list officials ordered to be charged though he and other DOTC officials were named as among the respondents in the original complaint of the Ombudsman Field Investigation Office.
The Ombudsman, however, did not include Transportation and Communications Secretary Joseph Emilio Abaya in the list officials ordered to be charged though he and other DOTC officials were named as among the respondents in the original complaint of the Ombudsman Field Investigation Office.
Abaya is a close ally of Pres. Benigno Aquino III and is the acting president of the ruling Liberal Party (LP).
'Intentionally hid relationship with Soriano'
According to the Ombudsman's resolution, Vitangcol "intentionally hid his [affinitive] relationship with Soriano, which would have automatically disqualified PH Trams" from the project.
The resolution also ruled that the five PH Trams incorporators should be equally held liable for executing a false Affidavit of Disclosure dated Aug. 12, 2012 stating that none of the incorporators are related by affinity with any member of the MRT's negotiating and procurement team.
The anti-graft body found "unavailing" Soriano's claim that he already divested through a waiver his interest in PH Trams on Sept. 10, 2012.
The Ombudsman said such waiver was not recorded in the Securities and Exchange Commission and runs contrary to Soriano’s Statement of Assets, Liabilities and Net Worth (SALN) declaring that he obtained an interest as a stockholder of PH Trams in November 2012.
Based on the record of the Ombudsman, a maintenance agreement between the MRT Corporation (MRTC) and Sumitomo Corporation was entered into in December 1997, "for the safe and proper operations of the trains, including the provision for labor and supervision."
The original maintenance agreement between MRTC and Sumitomo expired on June 21, 2010 and had undergone four extensions from June 2010 until October 2012.
Fifteen days prior to the expiration of the last extension, the MRT BAC adopted a resolution to undertake the procurement of an interim maintenance provider for six months and negotiate its terms and conditions.
The Negotiating Team recommended that the project be awarded to PH Trams - CB&T joint venture in the amount of $1.15 million monthly.
On Oct. 20, 2012, the project was awarded to PH Trams - CB&T and was renewed three times until Sept. 4, 2013.
Extortion allegation
Vitangcol resigned from the MRT in May 2014 amid allegations of corruption haunting the MRT including the alleged $30-million extortion try on Czech company Inekon Group in exchange for the awarding of a P3.8-billion contract for the supply of additional coaches for the MRT 3 expansion project.
The contract was eventually awarded to PH Trams after officials of Inekon allegedly refused to pay the amount allegedly being extorted by Vitangcol and PH Trams director De Vera.
The extortion anomaly is the subject of another investigation still pending with Office of the Ombudsman.
In its report submitted to Morales' office in June last year, the Ombudsman FIO recommended the filing of graft and violation of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees against Vitangcol and De Vera for the alleged extortion anomaly.
The FIO also recommended the filing of administrative charges of Dishonesty, Grave Misconduct and Conduct Prejudicial to the Best Interest of the Service against Vitangcol. — NB/JDS/RSJ, GMA News
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