Abaya pulls off 2 scams during Christmas holidays

Thieves strike when victims are most distracted. So it was on the day before Christmas that Transport Sec. Joseph Abaya scammed Filipino taxpayers of multibillion pesos. He struck not once but twice. He must think Filipinos too dumb to stop him.

As foretold here on Dec. 21, Abaya used the Yuletide break for the rip-offs. First was a P4.25-billion maintenance of the MRT-3 commuter rail – granted to his Liberal Party-mates. It was by secret negotiation instead of public bidding (see http://www.philstar.com/opinion/2015/12/21/1534838/abayas-christmas-scam-philippines).

Also while nobody was looking, Abaya accepted another Chinese prototype of a “modern” MRT-3 coach – but without a motor like the first one in August. Because engineless, it had not been test-run for 5,000 km at the factory in China. Abaya thus allowed a breach of the P3.85-billion purchase contract for 48 such coaches (light rail vehicles, LRVs).

The way the P4.25 billion was portrayed in Abaya’s DOTC website, it’s as if Filipinos should be thankful for being robbed. The deal supposedly would solve the frequent MRT-3 breakdowns that riders suffer. Yet Abaya himself had caused those stoppages and accidents. That’s when he removed in Oct. 2012 the 12-year-long Sumitomo Corp. maintenance contract, and brought in PH Trams, chaired by LP fundraiser Marlo dela Cruz. He later replaced PH Trams with Global Epcom, still with dela Cruz as authorized representative. Both companies rendered no real maintenance nor kept spare parts on stock, thus deteriorating the trains, tracks, power supply, signaling system, and stations. Abaya paid P1.85 billion in all to dela Cruz’s firms till July 2015. It continues to be contracted for upkeep of stations until Jan. 5, 2016.

The P4.25 billion supposedly is emergency because there would be no more maintenance starting Jan. 5. But that’s the catch. Abaya contrived the emergency to justify the closed-door negotiations. It was no emergency at all, for the P4.25 billion came from the 2014 and 2015 national budgets; meaning, the works had been planned and foreseen as far back as 2013 (see http://www.philstar.com/opinion/2015/10/28/1515664/abaya-railroading-p4.25-b-deal-liberal-party-mate).

From the start Abaya rigged the negotiations in favor of the consortium of Korea’s Busan Transport Corp. and four little-known Filipino firms. This was exposed here as early as Sept. 2, (see http://www.philstar.com/opinion/2015/09/02/1494933/new-mrt-3-scam-abaya-grant-p4-b-sans-bidding). Reportedly brokering for Busan was a certain Eugene Rapanut, one of two brothers who have been cornering DOTC aviation and railway contracts. The LP’s Marlo dela Cruz – again – allegedly is involved as well.

Abaya fudged the equity shares of the partners to feign compliance with the Constitution’s limit on foreigners to only 40 percent in utilities. He made it look like Busan, with P138.6-billion net worth, held only four percent. Supposedly Edison Construction and Development Corp., Tramat Mercantile, TMI Corp., and Castan, with combined net of a little over a billion pesos, owned 96 percent (see http://www.philstar.com/opinion/2015/10/30/1516328/abayas-liberal-party-mate-bags-p4.25-b-mrt-3-rehab-parties-notice-rigging). The four companies have no experience in railways. Based on their websites, Edison is into construction, Tramat into agricultural equipment supply, TMI into trading, and Castan into plumbing.

Supposedly the final negotiated price of Busan et al is only P3.81 billion, down from the original DOTC budget of P4.25 billion. That’s no reason to cheer. One doesn’t thank the burglar for overlooking some pieces of jewelry while cleaning up the rest of the valuables.

Abaya also stated that the deal had the approval of the Government Procurement Policy Board, the Dept. of Justice, and the National Economic and Development Authority chaired by President Noynoy Aquino. That’s a lame excuse. Accessories and accomplices do not sanitize the plunder, but are as liable for it.

The arrival of the second prototype LRV from China is not a relief for the MRT-3 commuters. It is in fact a threat not only to their lives and limbs, but also those of motorists along EDSA (Epifanio delos Santos Avenue) below the railway.

Abaya says that the two prototypes, plus a third arriving in February, will be fitted with traction motors from Germany. Then, they will undergo the 5,000-km test runs on the MRT-3 tracks, no longer at the factory of Dalian Locomotive and Rolling Stock Corp.

That’s where the danger lies. The MRT-3 tracks are dilapidated, because of PH Trams-Global Epcom’s neglect. Using the tracks at night for the test runs, when the MRT-3 operations are at rest, would further deteriorate the tracks, instead of being repaired.

The trains will be tested at speeds of 45-65 kph, at different slopes and curves. It is not farfetched for the prototypes to jump off the broken tracks and fall onto the motorists below.

If Abaya stints on the test-runs to avoid further track deterioration, then he would in effect not determine the prototypes’ safety and operability. In which case he directly would be imperiling the riders, to be treated as guinea pigs.

And so goes on the cover-up of the original plunders with more plunders.

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