DOTC warned about firm selling fake license plates

MANILA, Philippines – An anti-corruption group warned the Department of Transportation and Communication (DOTC)  against another firm allegedly embroiled  in a controversy and now wants to bag the P3.85 billion license plate contract.

In a letter addressed to DOTC Secretary Emilio Abaya, the Anti-Trapo Movement (ATM) said the Power Plates Development Concepts Inc. had been allegedly involved in selling fake commemorative license plates in 2004.

ATM said the commemorative plates then sold for between P2,500 and 3,000 had been marketed as a way to be exempted from the MMDA’s color coding scheme.

Recent audited financial statements  of the firm submitted to the Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission showed a  declared a net income of P41,729 last year, the group said.

The comparatively minuscule earning had been an improvement over the P22,356 the firm declared for 2011.The 2012 net income  represents the remainder of the sales of the company less its operating expenses.

From a profit of P330,528 in 2012,  the firm  reported total operation expenses of P 288,799 resulting in the net income of P41,729.

It fared no better the previous year when its profit for 2011 of P580,929.75 was eaten by total operation expenses of P558,573 resulting in a net income of P22,356.

The group had earlier called Abaya’s attention to Power Plates foreign partner J. Knieriem B.V. Goes (JKG), who also has no financial capacity to carry out such project.

The bidding for the project opened last May 6 to 7. The winning bidder will supply license plates for all registered vehicles both new and old for the next five years. The government hopes that the contract will also address the shortage issues that hounded the Land Transportation Office for months.

Read more...