'Strong indications' of graft for Abaya, DOTC officials over MRT woes

The Senate subcommittee on public services found "strong indications" of graft among Department of Transportation and Communications officials led by Secretary Joseph Emilio Abaya, who are directly involved in the operation of the Metro Rail Transit.

In its 45-page report, the subcommittee led by Senator Grace Poe cited several provisions of the Anti-Graft and Corrupt Practices Act which the DOTC officials could be held liable for.

It mentioned causing undue injury to any party, including the government, or giving any private party any unwarranted benefits, advantage, or preference through partiality, evident bad faith or gross inexcusable negligence.

"In the course of the inquiry with regard to malfunction problem of the MRT 3, the subcommittee observed the badges of negligence and inactions of the DOTC officials led by Abaya indicating insensitiveness, callous indifference, and acts disadvantageous to commuters, the Filipino public, and the government," it said.

It said the subcommittee report should be submitted to the Office of the Ombudsman, the Department of Justice, and the Civil Service Commission for appropriate actions and must be considered as initial leads "as there are strong indications of violations of Republic Act 3019."

Poe’s committee conducted several hearings on the problems besetting the railway system including maintenance, lack of trains, long lines of passengers, among others.

The senator had called for Abaya's resignation during the hearings.

‘Draft report without signatures’

Sought for comment, Abaya said he has yet to read the subcommittee report, which he said has yet to be signed by its members .

He reiterated the DOTC was doing its best to solve the problems of the MRT.

"Well at the very least we showed up in the Senate three or four or five times, answered everything they threw at us and we didn't evade anything," Abaya said.

Abaya said the DOTC even cooperated with the Ombudsman by submitting all requested documents.

"Allow us to read the report first so we can logically react. Again we are quietly and continuously solving the problems of MRT most especially getting the new LRVs operating for our people. I'm sure the public would appreciate that most," Abaya said.

"Is it proper to respond to draft reports without signatures?" he added.

Subcommittee findings

In the course of the hearings, the subpanel found that there was a problem in the maintenance of trains and its system and that there was an insufficiency of trains vis-a-vis increasing ridership.

“Even the independent audit of MTR Hong Kong found that the MRT’s physical structure and its financial system need to be rehabilitated. The rehabilitation of physical structures such as the trains or rolling stock, track work, and the station facilities must be done immediately and must be pursued with much transparency and cooperation of stakeholders and relevant groups,” it said.

The MRT3’s average daily ridership is already at over 560,000 and its highest single-day passenger count is 620,000.

Procurement services

The report blamed the MRT's maintenance problem to the DOTC’s alleged repeated awarding of contracts to inefficient maintenance providers and the shift of responsibility to procure maintenance provider from MRT Corporation to DOTC.

It said that the DOTC apparently made moves to secure the responsibility to procure the maintenance provider for the MRT3.

“The DOTC, together with the MRTC, could have easily resorted to a full public bidding in the award of the new long-term maintenance contract,” the report said.

“The DOTC, however, awarded an ‘interim’ maintenance contract to PH Trams-CB&T Joint Venture in October 2012 via a negotiated bid through  a forced emergency procurement as only 12 days were left prior to the expiration of the then existing last six-month extended contract of Sumitomo,” it said.

'Violations of RA 3019'

The report said the various circumstances surrounding the unnecessary shift of responsibility of procuring maintenance provider from MRTC to DOTC, the award of the maintenance contract to PH Trams despite vigorous objections by MRTC, the alleged lack of the necessary inventory of spare parts by post-Sumitomo maintenance providers, the apparent creation of emergencies to justify emergency procurement, and the alleged financial incapacity or lack of necessary capitalization of PH Trams “point to possible violations of the sections 3 (e), (f), and (g) of Republic Act No. 3019 (the anti-graft law) that must be looked into.”

“The injury incurred by the riding public and the government are apparent. Unwarranted benefits, advantage, or preference might have been accorded to PH Trams and APT Global,” the report said.

“Accordingly, DOTC might have acted with manifest partiality, evident bad faith in relation with MRTC or, simply, gross inexcusable negligence in allowing the MRT 3 to deteriorate by not immediately hiring a competent and able maintenance provider with a long-term contract including general overhauling,” it added.

'Fare hike in bad faith'

The report said that the MRT fare hike was an act in bad faith.

“It should be noted that several hearings were conducted by the subcommittee and this information of fare hike was never mentioned at all. There were opportunities to present it but the increase in fare hike was timed during the holidays of 2014. It was an indicia of bad faith on the part of the DOTC,” the report said.

It also said that the DOTC’s award to Dalian of the contract for new light rail vehicles was “too late and delayed as the need to acquire new LRVs to respond to the exponential increase of MRT3’s ridership has already arisen as early as 2004.

“It is as if the DOTC has been waiting all along for a ‘friendly’ bidder that could ‘cooperate’ with the DOTC, especially due to reports of a prior bribery attempt in relation to Inekon,” it said.

“That being said, there is a need for further investigation as to possible violations of Sections 3 (e), (f), and (g) of RA 3019 by the leadership and officials of the DOTC,” it added.

Ombudsman charges

Poe earlier expressed disappointment when the Office of the Ombudsman spared Abaya from graft charges over alleged irregularities in the MRT's interim maintenance contract.

Ombudsman Conchita Carpio Morales had 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 over the deal worth $1.15 million a month.

The subcommittee report was submitted to Senator Sergio Osmena III, the chairman of the Senate Committee on Public Services, in the form of a memorandum as he assigned Poe to handle the MRT3 malfunction issue.

Copies of the report were given to the vice-chairman and members of the committee, and the Senate as a whole. —with Jon Viktor Cabuenas and Kathrina Charmaine Alvarez/JST/NB, GMA News