MRT-3 maintenance firm told to explain

Last week the Dept. of Transport fired off two memos to MRT-3 upkeep firm Busan Universal Rail Inc. Explain in seven days, BURI was told, why its P3.8-billion contract to maintain all 73 coaches and overhaul 43 of those should not be scrapped for non-performance since Jan. 2016. The memos came in the wake of successive train breakdowns right after the Holy Week inspections. There was even a derailment at the end-station, in which fortunately no one was hurt but hidden from the public.

In response BURI this week ... held a press conference. Expectedly none of BURI’s claims clarified the serious issues. Supposedly glitches had occurred ever since MRT-3 began in 2000, the coaches and rail tracks are aged, parts suppliers are too slow, and the derailment duly was reported to MRT-3 per protocols. Repeated were novel alibis that summer heat and faulty grease were corroding the steel wheels, and that elevated rails were incompatible with on-ground coaches from the start.

One would think that BURI is a victim, forced into a juicy contract it never wanted.

That is far from true, though. As exposed here since 2014 the MRT-3 maintenance is a continuing rip-off. Only now is the DOTr fixing it.

BURI was contracted under unusual circumstances. There was no public bidding for the three-year work. Only secret closed-door talks were held starting Aug. 2015. Word kept leaking out back then that invitations for reputable Philippine, Singaporean and European train operators to join were just for show. The deal already had been reserved for four unknown but intertwined Filipino outfits that later would form BURI. The four had no experience in rails: Edison Construction was into real estate, Tramat Mercantile into general merchandising, TMI Corp. into agricultural supply, and Castan Corp. into plumbing. The financial specs were altered to suit their inadequate capitalization. They pulled in Korea’s Busan Transport Corp. for technical knowhow and money. But in BURI’s corporate set-up P40-billion Busan owned only four percent; the four locals, barely worth P1 billion, held 96 percent. Lawyers previously have been disbarred for facilitating dummying.

There’s worse. BURI’s principals, Eugene Rapanut and Marlo dela Cruz, allegedly were Liberal Party-mates of then-contracting DOTr head Joseph Abaya, LP president. Rapanut in 2013 had brokered the P3.8-billion indent by Abaya of 48 coaches from China’s Dalian Corp. Delivered last Jan., none of the coaches are operable: untested for 5,000 km at the factory and un-equipped with signaling. Former MRT-3 general manager Al Vitangcol swore to the Ombudsman there was a five-percent kickback, nearly P200 million. Dela Cruz was the authorized rep of PH Trams and Global Epcom, successive MRT-3 upkeep contractors in 2012-2015. Records show that the coaches, tracks, signaling, power supply, and stations deteriorated in that period from sloppy maintenance. Dela Cruz’s brother is now BURI’s general manager.

The Commission on Audit this month compiled the results of BURI’s bad work in Jan.-Dec. 2016:

• 2,619 train removals, ie., pullout from daily runs due to glitches;

• 63 service interruptions, or shutdowns due to problems with the coaches, tracks, power supply, and signaling; and

• 586 incidents of passenger unloading, at times thrice a day (there have been around 110 so far in Jan.-Mar. 2017).

Usec. for Rails Cesar Chavez cited the COA findings in his first memo to BURI last week. His second memo stated that 17 of 43 coaches should have been overhauled by now. Yet none “has been turned over, delivered, and duly accepted for this purpose.”

The coaches that jumped the tracks last week reportedly had defective wheel gears. BURI should have detected and corrected those in the preventive maintenance or overhaul. That’s what Chavez wanted BURI to explain too, not the summer heat or railways’ age. In six years as deputy manager of MRT-3’s older sister LRT-1 and younger LRT-2, he had never heard such excuses, he said. If the wheel grease was inapt, then BURI too must answer for it as the buyer of the lubricants.

The fielding of the 48 new Chinese coaches would have eased the train shortage caused by poor upkeep and no overhaul. But those cannot be run without the on-board signaling that keeps safe distances between trains. That signaling, worth P329 million, was supposed to be part of the P3.8-billion train purchase of 2013. Dalian, like BURI, has an excuse. Purportedly there was confusion as DOTr in 2015, while the coaches were being fabricated, upgraded the central control software for P59 million, so Dalian only now is installing the on-board accessory.

In the separate P3.8-billion BURI maintenance contract, there is a proviso to totally replace the newly upgraded and installed signaling – for P888 million. What for, Chavez also is asking BURI to explain? He has sent a third memo to DOTr lawyers to look into rescinding that wasteful expense.

BURI and Dalian in effect are blaming the old DOTr. That fault lies mainly with then-DOTr expansion project manager Deo Leo Manalo, now MRT-3 operations-in-charge. It was he who oversaw the purchase of the inoperative Dalian units. He should have expanded the depot and upgraded the power supply to accommodate the additional trains – but didn’t. In 2016 he was the maintenance-in-charge then OIC-general manager when BURI was fouling up. He is now following up the billings of BURI and Dalian.

BURI’s blabbers in this week’s press-con are likely to be its same replies to Chavez’s memos. Contract repeals seem to be coming. Sen. Grace Poe says past and present DOTr officials responsible for the mess should be jailed.

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Free medical consults, dental extractions, and optical checkups will be given tomorrow, Apr. 29, 6-10 a.m., at the Igorot Park, beside Burnham Park, Baguio City. Also a forum on HIV-AIDS prevention and care, and free legal advice – all part of the run-up to the 49th anniversary in Sept. of the Sigma Kappa Pi Fraternity. The Baguio services are in tie-up with UNTV. SKP brods are enjoined to attend.

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Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).

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