SC: License plate modernization program funding constitutional

The Supreme Court (SC) on Tuesday declared as constitutional the funding for the P3.8-billion Motor Vehicle License Plate Standardization Program (MVPSP), clearing the way for the release to motorists of 700,000 license plates turned over by the Bureau of Customs (BOC) to the Land Transportation Office (LTO).

Voting unanimously, the high court junked the petition of former Abakada representative Jonathan dela Cruz and Parañaque City Representative Gustavo Tambunting who argued, citing a Commission on Audit notice of disallowance, that the contract was awarded to the Filipino-Dutch consortium of Power Plates Development Concepts Inc. and J. Knieriem B.V. Goes (PPI-JKG) without an allotment under the General Appropriations Act of 2014.

"The Court ruled that the 2014 GAA included an appropriation for the program and the use of the appropriation is constitutional," the SC said.

The SC also said that it had already ruled on the legality of the procurement of the MVPSP in April 2015 and that whatever defects attended the procurement had been "cured" by the appropriation in the 2014 of the full amount.

"It noted that while Jacomille [decision] focused on the legality of the procurement of the MVPSP in consideration of the insufficient funding of the project under the 2013 GAA, the Court nonetheless determined in that case that the 2014 GAA contained an appropriation for the MVPSP and, thus, could be implemented using the funds under the 2014 GAA," the SC said.

"The appropriation, both for procurement and implementation, has been examined and decided by the Court and may not be assailed anew under the present petition based on the same grounds, which had already been dealt with in the Jacomille decision," it added.

The Court also lifted the temporary restraining order it issued on June 14, 2016 on the "release, distribution, or disposal in any manner" involving the 300,000 license plates for motor vehicles and 400,000 for motorcycles which were turned over by the BOC to the LTO.

The license plates were shipped in 11 container vans, but were not claimed by PPI-JKG, the consignee which holds the supply contract with the LTO.

The shipment has been kept at the Manila International Container Port as PPI-JKG did not settle the P40 million of taxes and duties.

The BOC said it could neither utilize nor dispose of the plates which were specifically made according to the requirements and security features prescribed by the LTO.

It then decided to donate the plates to the LTO. —ALG, GMA News