House to probe deeper into MRT maintenance deal

MANILA, Philippines — A House of Representatives committee decided Tuesday to dig deeper into the P517-million maintenance contract that the MRT 3 awarded to a company founded by a relative of its former general manager Al Vitangcol, after several lawmakers said they were not satisfied with his explanation.

Vitangcol, appearing at the hearing of the House good government and public accountability committee, said his uncle-in-law Arturo Soriano was an incorporator of PH Trams, but he said Soriano had divested himself from the firm by the time the bidding for the maintenance contract was conducted in 2012.

But several lawmakers still raised suspicion about the matter, insinuating that PH Trams was brought into the bidding because of its connection with Vitangcol and pointing out that the firm was  incorporated only two months before it was awarded the contract, and with a paid up capital of only P625,000

According to Vitangcol, he was made aware that Soriano was an incorporator of PH Trams when it, together with its joint venture partner, decided to participate in the Department of Transportation and Communication’s bidding for a maintenance provider.

The DOTC took over the task after the MRT Corp., a private corporation, failed to conduct such a bidding.

Al Vitangcol III INQUIRER PHOTOS/LYN RILLON

Vitangcol said he was the one who asked Soriano to divest himself from PH Trams because it would be improper for him to remain there. This was in September of 2012, and the contract was awarded in October.

“When I learned that particular item, then I directly told him that it would be improper on his part and on my part if he would continue to be a director of PH Trams. So he divested and he sold his shares as director of PH Trams. At the time that the bidding was done by DOTC, then Mr. Soriano was no longer a part of that particular firm,” he said.

He later said he did not inform the Bids and Awards Committee, of which he was a member, that his uncle-in-law was an incorporator of PH Trams because the latter was no longer connected with it.

“They already provided the deed of sale and transfer of rights,” he said.

Transportation Undersecretary Jose Lotilla also said PH Trams, as part of the bidding process, issued a statement stating that it had no relationship with any of the DOTC officials. Lotilla said he  learned of Soriano’s connection to Vitangcol only the other day.

Ilocos Norte Rep. Rodolfo Fariñas, who moved for the committee to look deeper into the maintenance contract, scoffed at Vitangcol’s explanation that Soriano had already divested from PH Trams, saying it appeared to be just an excuse.

“That’s what we call kaliwaan or… palusot [an excuse]. Of course, so that they won’t be liable under the anti-graft law, there was a cleansing before it was transferred. But even if the blind will probe this, it will see that there had been an exchange here,” Fariñas said.

ACT Teachers Rep. Antonio Tinio also aired similar suspicions, as he noted that PH Trams alone would not have qualified to join the DOTC bidding, and was able to participate only because of its joint venture with CB&T.

Tinio wondered what PH Trams, with its relatively limited capital, brought to the table when it became involved in the joint venture to bid for the maintenance contract.

He said the emerging “hypothesis” was that its incorporators’ ties with Vitangcol was the main thing it had going for it.

“It would appear that the main thing PH Trams brought to the table is its connection with the bids and awards committee. The hypothesis coming out is that PH Trams was a broker,” he said.

Cavite Rep. Elpidio Barzaga also questioned the DOTC on its award of the maintenance contract to PH Trams given that it was only two months old and had a relatively small paid-up capital.

Lotilla said that if PH Trams had no joint venture partner, it would not have been able to participate in bidding for the project.

The allegations over the award of the P517 million contract to a firm connected to Vitangcol’s relative led to his resignation as MRT 3 General Manager.

Vitangcol, an appointee of the President, said the DOTC relieved him of his position because of this, but he deemed it best to resign.

Asked if he would continue on as MRT head if the President would not accept his resignation, he said he would not because he already signified his resignation, which was effective immediately.

Meanwhile, Vitangcol also denied anew allegations made by Czech Ambassador Josef Rychtar that Vitangcol tried to extort $30 million from the Czech firm Inekon Group so that it would be given the contract for new MRT coaches.

He told lawmakers he had filed a perjury case against Rychtar for what he said were lies the ambassador had made in his affidavit.

He said he was willing to have his phone records subpoenaed, in the course of denying Rychtar’s allegations that Wilson De Vera, who allegedly made the extortion attempt on Vitangcol’s behalf, called up the MRT head during a dinner with the ambassador.

Rychtar skipped Tuesday’s House hearing on the matter, but sent a copy of his signed affidavit to the panel.

There were also moves by the House to summon De Vera, a losing mayoral candidate of the Liberal Party, but even Vitangcol said he could no longer get in touch with him and had learned he had moved to the United States.

Vitangcol said he had emailed the US consulate for help in locating De Vera, but has received no reply.

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