Former PNR chief convicted of graft

MANILA, Philippines — The Sandiganbayan sentenced Manuel Andal, former general manager of the Philippine National Railways (PNR), to imprisonment of eight to 12 years for illegally entering into contracts in 2009.

The antigraft court’s Fourth Division also perpetually disqualified Andal from holding public office and ordered him to reimburse the government P86.5 million. The decision was dated Jan. 22 but details were released on Wednesday.

The graft cases stemmed from contracts with Pandrol Korea Limited and Nikka Trading, which were both given “unwarranted benefit, advantage or preference.”

According to the information, the PNR in May 2009 entered into a contract with Pandrol Korea to procure 170,000 sets of rail fastenings and 50,000 clips and insulators despite the lack of certification from the secretary of transportation and communications.

No board approval

While the PNR board conditionally approved the recommendation to directly purchase materials from Pandrol Korea instead of conducting public bidding, a resolution provides that the direct contract is subject to the condition of the approval of the transportation secretary.

Doing away without the required certification from the transportation secretary “constitutes gross negligence on [Andal’s] part.”

The decision added: “By doing so, he effectively preempted the review of the propriety of the PNR-Bids and Awards Committee’s (BAC) resolution recommending direct contracting as the mode of procurement, and the resultant lack of public bidding prevented the government from determining whether the price of items that were procured were the lowest and most responsive.”

Andal also entered into a contract with Nikka Trading in August 2009 for the purchase of 50,000 sets of antivandal concrete and rail fastening assembly despite the absence of public bidding, or alternative methods of procurement.

The contract was also made without the prior approval of the PNR board and despite the similar contract with Pandrol Korea. The PNR paid P86.5 million Nikka Trading for this contract.
This other contract was “worse,” the decision said.

“[Andal] was not authorized to do so by the PNR board and the manner of procurement—direct contracting—was decided by [the] accused alone, without the BAC and PNR approval,” it added.
Sandiganbayan Associate Justice Bayani Jacinto wrote the decision while Associate Justices Alex Quiroz and Lorifel Lacap Pahimna concurred.