Transportation Secretary Arthur Tugade said Monday he is supporting an undersecretary’s decision to withhold payment to Busan Universal Rails Inc., the maintenance provider of Metro Rail Transit Line 3.
“The decision to withhold payment to BURI is not a decision of Undersecretary [Cesar] Chavez alone. It is the decision of the department as a whole. I support the actions of Undersecretary Chavez in handling the issues confronting the rail sector of DOTr. His actions were in accordance with my instructions,” Tugade said in a statement.
The DOTr said BURI was insisting on claiming a total of P59 million in withheld payments from the agency covering the period September 2016 to November 2016.
Tugade said if he had it his way, he should be included in the graft case filed by Busan Universal against Chavez, as the decision to withhold BURI’s payment was made with his approval and consent.
“Undersecretary Chavez always consults his plans and actions with me. His decisions were made with my consent, approval and confirmation. So, I should also be included in the graft case filed against him,” Tugade said.
“Besides, all his actions are in accordance with the contract, equity, decency and law. All these are aboveboard and have gone through rigorous review and due process,” he said.
The transportation chief said withholding the payment to BURI took into account “the good of the country and the welfare of the riding public.”
BURI officials filed a graft case against Chavez before the Ombudsman after the DOTr undersecretary withheld the payment for the logical vehicle unit for MRT Line 3 worth P4 million. The LVU is a part of the automatic train protection or the onboard signaling system.
Chavez said he decided to temporarily hold payment of the LVU as he waited for BURI to furnish him with the certificate of origin and factory inspection report attached to the LVU billing.
BURI acquired the LVU from Diamond Pearl, owned by the family of Marlo dela Cruz, while the manufacturer of MRT3’s original signaling system came from Bombadier, Chavez said.
He said this was a requirement of Commission of Audit to make sure that the spare parts for the coaches were not taken from other train coaches.
Chavez said he was merely ensuring that government funds were spent judiciously on projects and acquisitions.
“My decision to withhold payment is precisely to protect public funds. How can I be charged with graft when I am only protecting public funds and the people’s welfare?” he said.