LRTA denies anomaly in rail expansion project

Officials of the Light Rail Transit Authority (LRTA) welcomed yesterday Malacañang’s order that they take responsibility in explaining the $204 million LRT Line 1 capacity expansion project.

LRTA administrator Pacifico Fajardo expressed confidence they can fully explain the developments in the bidding for the project amid allegations it was marred by irregularities.

"We look forward to explaining it to everybody interested, confident that once we explain it, we can put to rest these undue concerns over the integrity of the bidding that has been conducted for the project," Fajardo said.

Fajardo pointed out that even the Japan Bank for International Cooperation (JBIC) has not reacted to the allegations of irregularities and extortion attempts by groups identified with Malacañang on the Japanese construction companies bidding for the project.

Last Sunday, opposition senatorial candidate Francisco Tatad claimed some groups identified with Malacañang are extorting campaign money from at least two Japanese multinational corporations interested in bidding for the LRT expansion project.

He said "unconfirmed reports" reaching him disclosed that Malacañang had demanded a participation fee of $1 million from each bidder, thus limiting the bidders for the project to two firms – the Kanematsu-Kawasaki Steel consortium and the Sumitomo-Itochu joint venture.

Fajardo denied Tatad’s allegations saying they are all lies. The Department of Transportation and Communications (DOTC) also denied Tatad’s accusations, citing the due diligence undertaken to protect the integrity of the bidding process, including securing opinions from the Department of Justice (DOJ) and the Bangko Sentral ng Pilipinas (BSP).

Fajardo said they would rather secure an opinion from BSP regarding technicalities of the bidding procedure being questioned by the disqualified bidder, Japanese construction giant Marubeni Corp.

He said he had reviewed the bidding process and saw no irregularities.

Fajardo said completion of the bidding was already delayed and a rebidding would take more time and effort.