Its just several months away from 2016, and while we are being amused by the theatrical antics of Ruby Tuason, several of President Aquino's henchmen are doing their fair share of creating mammoth problems that would eventually boomerang against them.
I am referring to the flurry of contracts in the form of private-public partnerships being entered into by the Department of Transportation and Communication (DOTC) which runs to the billions and several are being undertaken simultaneously and most, if not all, have stains of corruption in them.
The DOTC and their group of publicists are trying very hard to silence opposition and even paint a "business as usual" atmosphere, but the stench of these contracts are slowly waifing in the air and discouraging potential private investors thereafter provoking highly negative reactions from the commuting public.
One of these projects is this LRT-MRT3 Common ticketing system. Various propaganda slated news stories try to paint a benevolent halo on the project, and I am in agreement with them. The plan to integrate the payment system of both railway system is a thing worth spending 1.72 billion pesos. Yet, the DOTC should do it the right way.
Based on news reports and several complaints I heard from top executives in the industry, the DOTC awarded the contract to improve the LRT-MRT3 payment system to AF consortium. Nothing wrong, except that one of the majority owners of AF consortium, which is Ayala Land and Metro Pacific Investments Corporation are themselves, operators and manages the MRT 3.
Based on bidding rules, a bidder to this project which has interest in the transportation business is automatically disqualified. I just don't know why DOTC officials glossed this over when they read the bidding documents submitted by AF consortium which states the 67% voting shares of both Ayala and MPIC there. Are these officials blind?
Most of them are, blinded by the prospect of landing executive posts at Ayala and MVP's companies post-2016. I heard Finance secretary Cesar Purisima had secured for himself a nice pre-retirement post in one Ayala company after he leaves office in 2016.
What about other DOTC officials, like Popo Lotilla, who heads the DOTC bids and awards committee? Is Lotilla literate?
There before his very eyes documents which clearly shows the conflict of interest of Ayala and Metro Pacific but he probably turned a blind eye and allowed them to bid!
Worse, before his very eyes are three financial proposals, two of them agreeing to even pay government 1 billion pesos just to take on the project.
These two offers show glaring differences: one offers to give government 1 billion pesos as concession fee upfront, upon signing of the contract.
The other, offers only 279 million pesos upfront and the rest of the 809 million, to be paid and spread over a period of ten years and contingent upon reaching a 750,000 transaction volume in ridership in both LRT and MRT.
Who manages the MRT3? It's Ayala Land. Who says how much has been generated through transactions? It's Ayala. Who now bids for the common ticketing system and proposes to pay on a staggered and conditional basis the 1 billion concession fee? It's Ayala.
So if DOTC finally awards the common ticketing project to AF consortium, the situation will now be that one company operates the trains and the payment system. Meaning, it will now be up to Ayala to say that " hey, we have reached 750,000 volume transaction and we will now pay you a part of the 800 million pesos which we did not pay" when in reality, maximum ridership of both MRT and LRT only reaches 320,000/day? So, when will government expects to reach that 750,000 required volume? After ten years?
President Aquino should seriously look into what his trusted men at the DOTC are doing. They are messing the legacy of Aquino as the only administration with less graft and corruption. As things slowly progress towards 2016, graft and corruption continue to worsen, and worsen, and it stinks.
Will there be great injury when the DOTC awards this contract to AF consortium? Yes. If this contract proceed, there is a great possibility that this will lead to higher MRT/LRT fares. Because Ayala tries not to pay government back the 800 million, then, where on earth will government get the 800 million to fund the 1.72 billion peso project? You guessed it right---from commuters.
Let us militate against this deal.
I am quite amazed why Bayan Muna and the rest of the progressive block are silent over this issue. Is it because Smart and Globe are both in the picture? Had it been a truly new leadership in BayanMuna now, and that leadership is purely steeped in socialism, it would have led to a series of bloody rallies condemning this project.
While the DOTC has'nt officially awarded the contract, there is still time for us, the People, to stand up and fight this potential scheme from harming us financially.
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