The Department of Transportation said Wednesday it will impose penalties on Power Plates Development Concepts Inc. and J. Knieriem BV Power Plates for the late delivery of vehicle plates.
“LTO [Land Transportation Office] is now computing the penalties for late deliveries in the past,” Transportation Secretary Arthur Tugade said.
Under the contract, PPI-JKG is required to supply 15 million new plates within a five-year period. Of the 15 million plates, only four million were distributed, resulting in a backlog of 11 million.
Tugade said the P3.6-billion contract of PPI-KPG under the Motor Vehicle License Plate Standardization Program would remain unchanged.
“There will be no reduction in the contract price. It will remain the same. The savings generated due to change order [from finished plates to blank plates] will be used for the additional delivery of blank plates and RFID stickers,” he said.
The DOTr said in a statement “there is no legal basis to cancel the contract. “
“In January 2018, the Supreme Court lifted its temporary restraining order and dismissed the petition questioning the constitutionality of the procurement, while the Commission on Audit lifted its notice of disallowance on the advance payment for the deal last July, effectively clearing the contract of irregularities,” the agency said.