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Oct 23, 2017 @ 18:55

DoTr files graft case vs MRT 3 contractor


The Department of Transportation has filed a graft case against former executives of the agency and Korean firm Busan Universal Rails Inc. (BURI) over the alleged anomalous contract involving Metro Railway Transit line 3.

“We want to know the truth. We find it anomalous that the project was awarded to Busan JV, but the one receiving payments and doing MRT-3 maintenance works is BURI, a totally different entity,” DoTr Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra said in a 29-page complaint filed before the Office of the Ombudsman.

Yebra said the government issued the notice of award to Busan JV on Dec. 23, 2015.

However, interestingly and disturbingly, on the same day, former DOTr Assistant Secretary for Procurement and Bids and Awards Committee (BAC) chairman Camille Alcaraz requested the Securities and Exchange Commission (SEC) to facilitate the registration of a special purpose company consisting of the members of the Busan JV for the contract award of the Project, Yeda said.

BURI was later on eatablished on Jan. 4, 2016.

“It shows that the respondents conspired and confederated with one another to enter into a contract that is grossly disadvantageous to the government,” he said.

The DOTr handed down last week a notice to terminate it’s contract with BURI due to the MRT3’s poor performance.

BURI was given seven days to explain why the contract should not be terminated.

The DoTr, meanwhile, shall have 10 days, upon receipt of BURI’s response, to decide whether or not it will proceed with the termination of the contract.

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