The Department of Transportation (DOTr) yesterday issued a directive to ban two contractors of the Light Rail Transit line 2 (LRT-2) project due to delivery of substandard equipment.
In a statement, DOTr Secretary Arthur Tugade said he directed the blacklisting of the joint venture (JV) of Ma-an Construction Inc. and IFE Elevators Inc. for the delivery of substandard escalators for the LRT-2 line, and Kempal Construction Supply Corp. for the delivery of substandard equipment such as re-railing and diagnostic tools.
“This investigation has long been delayed. Initiate it now and let us make the culprits pay,” Tugade said.
The Light Rail Transit Authority (LRTA) discovered the 13 escalators installed at the line’s Recto station were operating below the required carrying capacity during the renewal of its certificate to operate.
The required capacity under the contract is 9,000 passengers per hour but the installed escalators can accommodate only 6,000 passengers per hour.
Of the 13 escalators installed, only one remains operational while the rest have broken down even before the expiration of the warranty period.
On the matter of the contract for re-railing equipment, a crate containing re-railing equipment was said to have a sticker printout identifying it as having been shipped by Chinese firm CRRC Corp., as ordered by the winning bidder Kempal Construction and Supply Corp.
However, it turned out the crate contained equipment from Bemco, an Indian company.
“If only the involved officials have exercised timely due diligence, public funds should not have been spent needlessly,” said Paul Chua, LRTA officer-in-charge.
LRTA has not yet accepted the equipment which prevented payment to the supplier, Kempal-Dafang JV.
Tugade also ordered the review of all other LRT rehabilitation projects and to continue with the filing of appropriate charges against corrupt officials and contractors.
The LRTA management filed corruption complaints before the Office of the Ombudsman against LRTA officials, engineers and private contractors involved in the anomalous purchase of P170.3 million worth of equipment for the LRT-2 line last week.
Included in the complaints are Engr. Fernando Quiambao, former LRTA head executive assistant and project implementation officer; Antonio Laigo Jr., LRT-2 operations department manager and designated representative to the PS-DBM Bids and Awards committee; Julito Bernales, manager, project management office for rehabilitation projects: Rommel Correa, LRTA engineer; Robert Ruiz, former LRTA employee; Kempal Construction and Supply Corp.; and the JV of Ma-an Construction and IFE Elevators.
“The filing of cases is in support of the anti-corruption efforts of the Duterte administration and DOTr Secretary Art Tugade’s call to provide comfort and to protect the interest of the riding public,” said Chua.
