THE Department of Transportation on Monday served its final decision to terminate its contract with Busan Universal Railways Inc. for the maintenance of the Metro Railway Transit 3 (MRT-3) system.
In a decision signed by DoTr Secretary Arthur Tugade dated Nov. 3, 2017, the agency noted the failure of Buri to address the issues raised in the notice of termination served to them last Oct. 17.
The DoTr cited reasons of termination such as poor performance, failure to put in service and subsequently ensure the availability of contractually obligated number of trains, and more importantly, for failure to put in operation reliable and efficient trains and failure to implement a feasible procurement plan for spare parts.
The DoTr also said Buri failed to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System.
“It cannot be overemphasized that what is at stake here is the welfare and interest of the riding public… This office could not just sit back and wait while watching Buri trifle and flirt with the lives of the commuting public, with its substandard performance,” Tugade said.
Along with this, Tugade signed the establishment and composition of the MRT-3 Maintenance Transition Team that will temporarily take over the maintenance works of MRT-3 while the procurement of a new maintenance provider is being processed.
In the House of Representatives, at least three lawmakers on Monday welcomed the decision of the DoTr to terminate the MRT3 maintenance contract of Buri and the immediate takeover of the maintenance by the government.
Puwersa ng Bayaning Atleta party-list Rep. Jericho Nograles said, however, that terminating the contract should not be enough in the government’s effort to finally improve the services of the MRT3 because those behind the P3.8 billion maintenance service deal should be pursued for criminal negligence and for plunder.
“It’s better late than never,” Nograles said.
“I am really happy that Secretary Tugade has the political will to do the right thing for the sake of our hundreds of thousands of MRT3 commuters. This action of the DoTr has been a long time coming but it’s still better late than never. For this, I thank Secretary Tugade for finally taking action,” Nograles said.
Nograles was the lawmaker who had earlier come up with a series of exposés against Buri and its anomalous contract with the MRT3.
“However, I think that after the termination, the DOTr should start running after those who were behind the anomalous contract. This is one big step in President Duterte’s fight against corruption,” Nograles added.
Reps. Carlos Isagani Zarate of Bayan Muna party-list and Ariel Casilao of Anakpwis party-list said the decision of the DOTr to terminate the contract with Buri should have been done earlier.
Zarate said the company miserably failed to do its job in maintaining the MRT and had supposedly even sourced some parts they used from Bangkal.
“Now that the maintenance contract had been terminated, we trust that charges would be filed against the officials of this company who seems to be trying to break the record of the highest number of MRT glitches and breakdowns per day,” Zarate said.
At the same time, Zarate urged the current DoTr leadership to run after past DoTC officials of the Aquino administration and hold them accountable for the sorry state of the MRT and other mass transport systems in the country as well as the numerous anomalies in the transportation sector.
“The DoTr now should take over the operations and maintenance of MRT and ensure that it is safe, reliable and affordable for the riding public,”Zarate said.
For his part, Casilao urged the government to assume the task of maintaining the said transport system, than bidding out again to another private contractor.
“It is long overdue, it is not enough to terminate the contract with Buri, but also to hold them accountable for the unacceptable deterioration of the MRT system, that affected and endangered hundreds of thousands of the commuting public,” Casilao said.
In order to avoid service disruptions, technical personnel from Buri, whose roles are vital in MRT-3 maintenance works, shall be absorbed by the MRT-3.
The Philippine National Railways, and Light Rail Transit Authority also committed to provide sufficient technical support and expertise to ensure the smooth transition of MRT-3 maintenance works.
Sought for comment, Maricris Pahate, external counsel of Buri said there was “no sufficient ground” to terminate its contract with DoTr.
“There’s no enough reason to terminate the contract,” Pahate said, adding Buri would be asking the court to resolve the dispute.
Buri also questioned the validity of the termination of its contract with the government as there was no recommendation from the MRT3 management to end its service.
“Buri’s contract mandates that the termination notice must be accompanied by verified report from the MRT3, stating grounds for and explicitly recommending contract termination,” Charles Mercado, spokesperson of BURI said.
“However, upon inquiry by Buri, MRT3 general manager Rodolfo Garcia, categorically stated that he did not make any such recommendation and did not even make findings as to existence of grounds for termination, but merely attested to authenticity of documents,” he added.
Mercado added that DoTr’s notice to terminate did not constitute factual or legal bases for termination of its contract as it reiterated that train removals, service interruptions and derailments were not caused of poor maintenance, but rather by system and design flaws and conditions of the MRT3.
He said the DoTr and not Buri that was in default of the contract.
As of Oct. 9, the total amount due and unpaid to Buri was already P348 million and that would increase this month by another P54.5 million.
“It s the DoTr-MRT3 that is in delay, for Buri has repeatedly performed its obligations. Buri therefore asked that the notice of termination be recalled,” Mercado said.
The DoTr in January 2016 signed a P3.8-billion three-year contract with the joint venture of Busan Transportation Corp., Edison Development & Construction, Tramat Mercantile Inc., TMICorp. and Castan Corp. to do maintenance works of the rolling stock and signaling system, the most critical maintenance component of MRT 3.