SC: DOTC, LTO Committed Irregularities in Procurement of Licensed Car Plates

(PNA) — The Supreme Court (SC) has declared that Department of Transportation and Communications (DOTC) Secretary Emilio Abaya and the Land Transportation Office (LTO) have committed irregularities in the procurement of licensed car plates which was complained of by motorists for lack of supply and underrated product.

In a 28-page ruling of the SC Second Division dated April 22, 2015 and written by Associate Justice Jose Catral Mendoza, it cited that the irregularity committed was the fact that the project did not have the adequate appropriation, but it proceeded with the public bidding.

The ruling was released on Thursday after the voting of the justices in Baguio City during the SC en banc summer session.

Concurring in the ruling were Senior Associate Justice Antonio T. Carpio, Associate Justices Arturo D. Brion, Mariano C. Del Castillo and Marvic F. Leonen.

The project was eventually awarded to JKG Power Plates from the Netherlands on July 22, 2013 after its bid for a total of Php1.98 billion for the supply of the licensed plates on Lot 1 of the project and Php1.196 billion for Lot 2 of same project.

The petition was filed before the SC by Reynaldo Jacomille on May 19, 2014 against respondents Abaya and former LTO Chairman Alfonso Tan, Jr. questioning the bidding process even without the necessary budget or appropriation for it.

The SC said that the Motor Vehicle License Plate Standardization Program (MVPSP) project of the LTO on the supply of the new car plates did not follow the timelines provided under Section 37 of Republic Act No. 9184, or the “Government Procurement Act”.

“The Court concludes that MVPSP did not follow the timelines provided in Section 37 of RA No. 9184. As earlier recited, the project did not have the adequate appropriation when its procurement was commenced on February 20, 2013, contrary to the provisions of Sections 5a, 7 and 20 of RA 9184,” the SC ruling said.

The SC said that another irregularity committed by DOTC and LTO was when it failed to obtain the required Multi-Year Obligational Authority (MYOA) from the Department of Budget and Management (DBM) for the Multi-Year Project (MYP) involving a Multi-Year Contract (MYC).

“The DOTC and the LTO likewise failed to secure MYOA before the start of the procurement process even though MVPSP is MYP involving MYC,” the SC said.

“All these irregularities tainted the earlier procurement process and rendered it null and void,” it added.

Despite the fact that the SC ruled that the petition must be dismissed because the case is considered moot and academic, since the defect of lack of appropriation has been cured “by the appropriation for the full amount of the project fund in General Appropriations Act 2014,” still, the SC cannot close its eyes with the irregularities committed by the DOTC and LTO.

The SC ruled that “on the issue whether or not Abaya and his men along with LTO, led by former Chairman Alfonso Tan shall be held liable, it is better addressed to the proper forum in filing the criminal and administrative charges against them.”

“As to whether the responsible public officials should be held accountable for the irregularities in the procurement process of MVPSP, the Court deems that it is not the proper forum to resolve the issue as it is not a trier of facts and it cannot receive new evidence from the parties to aid in the prompt resolution of the issue,” the SC added. (PNA) CTB/PTR