Accused turns accuser in MRT extortion case

GRAFT charges were filed on Wednesday at the Office of the Ombudsman against Transportation Secretary Joseph Emilio Abaya and four other officials for  allegedly receiving or soliciting gifts in exchange for the awarding of a P3.7 billion contract for the procurement of 48 new trains in 2014.

The complaint was filed by former Metro Rail Transit (MRT) general manager Al Vitangcol III, who was ordered indicted by the Ombudsman two months ago for graft charges in connection with an alleged extortion attempts on a foreign bidder for MRT contracts.  A co-complainant was  Leon Peralta, founding chair of “Liga ng Eksplosibong Pagbabago.”

Also charged were transportation undersecretaries Jose Perpetuo Lotilla, chair of the Department of Transportation and Communications (DOTC) bids and awards committee (BAC), Rene Limcaoco, Julianito Bucayan Jr.  and Catherine Jennifer Gonzales, and MRT3 general manager Roman Buenafe.

 ‘Kickbacks’

Vitangcol and Peralta alleged that a contract was awarded to CNR Dalian Locomotive and Rolling Stock Co. Ltd. because the officials involved in the bidding process enjoyed kickbacks with 1 percent of the project cost going to the BAC and another 1 percent to the DOTC “inner circle.”

According to the complainants, 1 percent kickback amounted to P37.6 million, while 2 percent amounted to P75.2 million.

“They said 1 percent was for the BAC members, and another 1 percent for the DOTC inner circle. So who are in the inner circle? These are the top officials of the DOTC,” Vitangcol told reporters in a chance interview.

The complaint cited text messages and e-mails purportedly coming from Dalian representatives promising 5 percent “in the event of a successful bid,” with 2 percent going to DOTC officials.

It also quoted a sworn statement by former Czech Republic ambassador Josef Rychtar in October 2013 detailing bidding fraud in a confidential white paper and describing how the process had allegedly been manipulated to favor Dalian to the disadvantage of a Czech company that was disqualified.

The complainants also cited the Senate transportation subcommittee’s report on the MRT3 contract that stated that the purchase of the 48 light rail vehicles was “highly suspicious on several grounds.” They alleged that the respondents violated sections of the Anti-Graft and Corrupt Practices Act  by “directly or indirectly requesting or receiving any gift” in connection with a contract, causing undue injury to any party including government or giving any party  “unwarranted benefits, advantage or preference.”

The complainants also accused the five officials of violating Section 7 of the Code of Conduct and Ethical Standards for Government Officials and Employees by “soliciting or accepting gifts” in the performance of their duties.

Vitangcol and Peralta did not detail Buenafe’s involvement.

In a text message to reporters, an MRT executive said Buenafe was not yet the general manager during the bidding for the 48 new coaches. “Allegedly, it was the former GM who, ironically, is the complainant,” he said, referring to Vitangcol.