Graft cases filed vs LRTA execs, contractors over anomalous purchase of substandard equipment
The Light Rail Transit Authority (LRTA) has filed corruption complaints against some of its officials, engineers, and private contractors before the Office of the Ombudsman for the alleged anomalous purchase of P170.3-million worth of equipment for the LRT Line 2.

Included in the complaints are former LRTA Head Executive Assistant and Project Implementation Officer Engr. Fernando Quiambao, LRT-2 Operations Department Manager and designated representative to the PS-DBM Bids and Awards Committee Antonio R. Laigo, Jr., Manager, Project Management Office (PMO) for Rehabilitation Projects Engr. Julito Bernales, LRTA engineer Rommel Correa, former LRTA employee Engr. Robert Ruiz, Kempal Construction and Supply Corp., and the Joint Venture of Ma-an Construction, Inc., and IFE Elevators, Inc.
The LRTA alleged that the respondents were involved in the anomalous purchase of substandard equipment for the LRT-2 following an investigation that was launched by a fact-finding committee in 2019.
Then LRTA Administrator Reynaldo Berroya, who passed away last month, formed a fact-finding committee in December 2019 to probe the P138-million contract for the Supply, Delivery, Installation and Commissioning of Conveyance System awarded to Ma-an Construction, Inc. and IFE Elevators, Inc. JV; the P25.8-million contract for the Supply and Delivery of Rolling Stock Diagnostic Tools and Equipment awarded to Kempal Supply and Construction Corporation-Dafang JV; and the P6.5-million contract for the Supply and Delivery of Re-railing Equipment awarded to the Kempal Supply and Construction Corporation.
In the latter part of 2020, the Philippine Anti-Corruption Commission (PACC) started its own investigation on the matter and subsequently issued a subpoena to LRTA officer-in-charge Paul Chua, requiring him to testify and submit pertinent documents. Other LRTA and PSDBM Officials were also summoned.
On June 15, 2021, the PACC submitted its investigation report to the Ombudsman on the three anomalous contracts and recommended the filing of appropriate criminal charges against the five LRTA and four PS-DBM officials, as well as the Kempal Construction and Supply Corp and the joint venture of Ma-an Construction, Inc., and IFE Elevators, Inc, for possible violations of the Anti-Graft and Corrupt Practices Act.
In July 2021, Berroya received a Notice of Accusation from PACC to which he replied that he merely relied on the signature of Quiambao as the Project Implementation Officer, tasked to oversee and implement all rehabilitation projects and ensure their efficient and smooth implementation, and of Bernales, the PMO manager.

In the Affidavit of Complaint supporting the findings of the PACC, the LRTA included Laigo, the LRT-2 Operations Department Manager as one of the respondents for his failure to conscientiously exercise his role and responsibilities as designated representative of LRTA to the PS-DBM BAC.
Laigo said the LRTA management was duty-bound to protect the interest of LRTA and should have made sure that the bidding documents conform to standards and the deliveries and testing parameters were compliant with the technical specifications required under the contract.
"His failure to take action to safeguard the interest of the Authority which he represented, is gross neglect of duty, to say the least," the LRTA management said.

Following this complaint, Transportation Secretary Arthur Tugade ordered the review of all other LRT rehabilitation projects and continue with the filing of appropriate charges against corrupt officials and contractors
Tugade also directed the blacklisting of the joint venture of Ma-an Construction, Inc. and IFE Elevators, Inc. for the delivery of substandard escalators for the LRT-2 line and Kempal Construction Supply Corp. for the delivery of substandard equipment such as re-railing and diagnostic tools.
"This investigation has long been delayed. Initiate it now and let us make the culprits pay," Tugade said.
The LRTA discovered that the 13 escalators installed at the line's Recto Station were operating below the required carrying capacity during the renewal of its Certificate to Operate.
The required capacity under the contract is 9,000 passengers per hour but the installed escalators can accommodate only 6,000 passengers per hour, it said.

Out of the 13 escalators installed, the LRTA bared that only one remains operational with the rest having broken down even before the expiration of the warranty period.
"We cannot afford to see our passengers especially the senior citizens, persons with disabilities (PWD) and pregnant women suffering because of the wrongdoing of the LRTA officials and contractor," Chua said.