Jailing MRT-3 crooks will avert repetitions

Two elements of plunder in MRT-3’s maintenance contracting have long been exposed in this column. First, the threshold amount of P50 million; in fact P3.3 billion in government money was stolen in Oct. 2012-Oct. 2017. Second, the series or combination of crimes: violated over and over were anti-graft, procurement, public service, and anti-dummying laws.

Now President Rody Duterte adds the third element to jail the perpetrators: personal benefit. Supposedly there was a three-way split of the loot. One-third went to the Liberal Party officers who controlled the Dept. of Transport and MRT-3. Another third went to the “Pangasinan Group” of favored contractors. Only the last third went to purchase of maintenance parts and labor. That’s why the commuter railway rotted. Passengers were injured in mechanical, electrical, and signaling failures.

Presidential Spokesman Harry Roque announced the emergence of whistleblowers. The witnesses are anonymous for now. But former transport secretaries and LP presidents Mar Roxas and Joseph Abaya will be indicted, he said. As well, former budget secretary and LP ideologue Florencio Abad.

If Malacañang wants full justice, it should indict as well other past Cabinet members who sat in the Government Procurement Policy Board and consented to the plunderous contracting. Too six transport undersecretaries, a succession of four MRT-3 general managers, and even present LP congressmen who covered up the anomalies over five years.

Sen. Grace Poe said indicting those officials would satisfy the search for accountability. The cases will not solve the present MRT-3 problems, yet would send a strong message to government officials that they would be held liable for any shenanigans. Present officials swiftly should solve the MRT-3 mess, lest they suffer the same fate, said Poe, head of the Senate committee on public services.

The MRT-3 plunder began with an attempted $30-million extortion from Czech train maker Inekon Corp. in July 2012. The firm was then offering to supply 48 new coaches, overhaul the 73 originals, and maintain the fleet.

When Inekon refused to pay up, the extortionists formed an undercapitalized, inexperienced company, PH Trams. Three months later it bagged the P55-million-a-month maintenance, without public bidding. It consisted of Roxas’ LP fundraisers in vote-rich Pangasinan province. No real upkeep was made; they only used up $17 million (P850 million) in parts left behind by 12-year-long Japanese contractor Sumitomo.

They combined with an LP in Ilocos Sur to broker the purchase of 48 coaches from unqualified Dalian Corp. of China. Reportedly there was a five-percent kickback, nearly P200 million, from the P3.8-billion deal. The units were delivered defective and late; not one is operational to date.

When PH Trams was exposed in 2013, the Pangasinan mafia revived the dormant Global Epcom as new front. It too had no capital, only influence. Its owner was no less than the general manager of the Philippine National Railways.

Global Epcom collected P55 million a month till mid-2015. In the second half DOTr divided the maintenance among seven contractors, including Global Epcom and the company of a senator’s cousin-campaign contributor.

Starting Jan. 2016 the maintenance was given to Busan Universal Rail Inc. Again, no public bidding. Four unknown Filipino companies – in construction, general merchandising, agricultural supply, and plumbing – owned 96 percent on paper. Giant Busan Transport of Korea, held a mere four percent. Behind BURI were the Pangasinan and Ilocos Sur LPs.

BURI’s P3.8-billion contract was supposed to last till Jan. 2019. But the MRT-3 only further deteriorated. Only two of the contracted 43 coaches were overhauled. The DOTr rescinded the contract for non-delivery of services and goods.

The DOTr has since been maintaining the railway on its own. BURI technicians have been rehired, and engineers seconded from the sister Light Rail Transit Authority. Conditions have worsened; coaches and signaling conk out more often; less trains are running. The MRT-3’s dilapidation is a main cause of Mega Manila traffic, which costs P3.5 billion a day in pollution, fuel, and opportunity lost.

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Launched last night was the three-man art exhibit “Tres Pares.” Featuring paintings of three visual artists of varied persuasions: Manila Sound legend Dennis Garcia of the Hotdog band; photographer/painter Quincy Castillo; and film director Nelson Cruz. Ongoing at LRI Design Plaza, 210 N. Garcia St., Bel-Air, Makati.

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

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