Tuesday, October 7, 2014

ON MRT3--DOTC plans to change management from Sobrepena to Ayala-MVP

We always hear reports of MRT3 operations encountering problems. I bet my peso that these things would "go away" the minute government, thru the Department of Transportation and Communication (DOTC) successfully wrest the ownership away from the Sobprenas to the consortium of the Ayala-MVP Group.

The Ayala-MVP Group won the bidding for the LRT-MRT ticketing system, which legality is now under question before the courts and before the Office of the Ombudsman. The Sobrepenas are still majority owners of MRT Holdings Corporation, the company with majority ownership of the MRT3 line.

Sources say, some government officials connected with the government are themselves, trying to amplify the operational problems of the MRT3 to justify an ownership struggle. Government intends to get from the Sobrepenas' majority stock so that they will then give it to a private consortium, which in this case, is the Ayala-MVP Group.

Nevermind if there is an obvious violation of the law against monopoly. Nevermind if there is a conflict of interest on the part of the Ayala-MVP Group because their consortium already "won" the bidding for the LRT-MRT ticketing system. Based on law, no operator of an LRT or MRT line or a toll way may actually participate or take part in any contract for the operation of MRT.

It is a known fact among business leaders that this administration favors the Ayalas who are strong allies not just of the Aquinos but of Cesar Purisima of the Department of Finance.