Raps filed vs. LRTA execs, contractors due to ‘anomalous’ deals

MANILA – The Light Rail Transit Authority (LRTA) has filed corruption complaints against some of its current and former officials, engineers, and private contractors involved in the “anomalous” purchase of PHP170.3-million worth of substandard equipment for the LRT Line 2 (LRT-2).

In a statement on Monday, the LRTA said included in the complaints filed before the Office of the Ombudsman were Engr. Fernando Quiambao (former LRTA Head Executive Assistant); Antonio R. Laigo Jr. (LRT-2 Operations Department Manager and designated representative to the Procurement Service – Department of Budget and Management (PS-DBM) Bids and Awards Committee (BAC); Engr. Julito Bernales (Manager, Project Management Office (PMO) for Rehabilitation Projects); Engr. Rommel Correa; and Engr. Robert Ruiz as well as the Kempal Construction and Supply Corp. and the Joint Venture of Ma-an Construction, Inc., and IFE Elevators, Inc.

“The filing of cases is in support of the anti-corruption efforts of the Duterte Administration and DOTr [Department of Transportation] Secretary Art Tugade’s call to provide comfort and to protect the interest of the riding public,” LRTA officer-in-charge Paul Chua said.

The complaints come after the late LRTA Administrator Reynaldo Berroya formed a fact-finding committee on Dec. 4, 2019 to investigate the PHP138-million contract for the supply, delivery, installation, and commissioning of conveyance systems awarded to Ma-an Construction, Inc. and IFE Elevators, Inc. JV; the PHP25.8-million contract for the supply and delivery of rolling stock diagnostic tools and equipment awarded to Kempal Supply and Construction Corporation-Dafang JV; and the PHP6.5-million contract for the supply and delivery of re-railing equipment awarded to the Kempal Supply and Construction Corporation.

In 2020, the Philippine Anti-Corruption Commission (PACC) started its own investigation on the matter and issued subpoenas to Chua, other LRTA, and PS-DBM officials to testify and submit pertinent documents.

On June 15, 2021, the PACC submitted its fact-finding investigation report to the Office of the Ombudsman on the three “anomalous” contracts and recommended the filing of appropriate criminal charges.

In July 2021, Berroya received a notice of accusation from the PACC, where he responded that he relied on the signature of Quiambao as the project implementation officer, tasked to oversee and implement all rehabilitation projects and ensure their efficient and smooth implementation, and of Bernales, the PMO manager.

In the affidavit of complaint supporting the findings of the PACC, the LRTA included Laigo as one of the respondents for “failure to conscientiously exercise his role and responsibilities as the designated representative of LRTA to the PS-DBM BAC.”

“[Laigo’s] failure to take action to safeguard the interest of the Authority which he represented, is gross neglect of duty, to say the least,” the LRTA said.

In response, Department of Transportation (DOTr) Secretary Arthur Tugade has ordered the review of all other LRT rehabilitation projects and continue with the filing of appropriate charges against corrupt officials and contractors.

Tugade also ordered the blacklisting of the joint venture 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