Philippine National Railways (PNR) General Manager Jeremy S. Regino has expressed his “total surprise” on the graft and administrative complaints filed against him before the Office of the Ombudsman (OMB).
In a statement given to journalists, Regino said that he was not connected with the Light Rail Transit Authority (LRTA) when the supposed contract for the upgrade of the Light Rail Transit Line 2 (LRT2) system was executed.
Regino said: "The complaint against me, if well intentioned and done in good faith, is a total surprise because at the time the alleged contract on train propulsion was signed, I was not in any way connected to the Light Rail Transit Authority (LRTA), nor did I have any iota of participation in it.”
He also said: "So, the inclusion of my name into the complaint may have a motive other than any patriotic reason. I therefore reserve my right to take legal actions at the proper time and against the authors and instigators of the malicious complaint so that anyone does not irresponsibly file a case just like that, without considering his accountabilities and possible liabilities."
Only Regino has issued his statement on the filing of the complaint against him. Manila Bulletin will also publish the statements of other respondents once made available.
The affidavit-complainant received by the OMB on May 25, 2023 was executed by lawyer Gerry A. Francisco.
Named respondents in Francisco’s complaint, aside from Regino, were LRTA Administrator Hernando T. Cabrera; LRTA Engineering and Maintenance Department head Santos G. Abrazado; LRTA Deputy Administrator for Operations and Engineering Paul Y. Chua; former head of the LRTA Engineering and Maintenance Department Federico J. Canar Jr., now the incumbent Department of Transportation-Metro Rail Transit 3 general manager; former head of the LRTA Legal Department Jose Jobel V. Belarmino; LRTA principal engineer Cesar J. Legaspi; LRTA principal engineer Hilfred Q. Tusing; and head of the LRTA Procurement Division Aylwinston C. Pillos.
The private individuals who were named co-respondents were Yolanda Ong-Ramos and Joseph O. Ramos, shareholders and officers of Multiscan Corporation and Brownsteel Corporation; John Doe and Richard Doe of Woojin Industrial Machinery Co. Ltd. of Korea; and Ma. Grazia G. Lee, shareholder and representative of Worldleaders Transport Corp.
Francisco asked the OMB to indict the respondents criminally for violations of Section 3(a), (e), and (g) and Section 4(b) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, in relation to the 2016 Revised Implementing Rules and Regulations of RA No. 9184, the Government Procurement Reform Act.
As for the administrative charges, Francisco pleaded the OMB to hold them liable for Grave Misconduct, Gross Incompetence, Gross Neglect of Duty, and Serious Dishonesty under Section 46 of the Revised Rules on Administrative Cases in the Civil Service in relation to RA 6713, the Code of Conduct and Ethical Standards for Public Officials and Employees.
Francisco alleged that in May 2018, the respondents executed a five-year contract for LRT2 with the Joint Venture of APT Lobal, Inc. composed of Multiscan Corporation and Opus Land Inc.
He said that Multiscan, in its Joint Venture Agreement with its partners, was obligated to supply and deliver majority of the trainsets' capital spares with the brand name classified as Phil Tech Engineering.
However, Francisco said that on Sept. 11, 2019, Ong-Ramos cited "obsolescence" of the Toshiba brand for the train monitoring and propulsion systems of LRT2 trainsets and proposed to the LRTA the "upgrade" of the equivalent brand of Woojin Korea.
He pointed out in his complaint that "obsolescence" cannot be used as a justification for the upgrade. He alleged that the respondents conspired with one another and used "imaginary scenarios and unlawful grounds" to favor the Ramoses and other private individuals to defraud the government.
By using Woojin Korea equipment for the propulsion and train monitoring systems of the LRT2 trainsets, Francisco alleged it will cost the LRTA close to P1 billion worth of public funds.
On the other hand, Francisco alleged that Worldleaders already had a bad record with LRTA since it reportedly reneged its contractual obligations several times in the past. By entering into another contract with such a supplier, he also alleged that the respondents made a deal that was grossly and manifestly disadvantageous to the government.
"There is no reason not to say that the Worldleaders' default had consequences that are unfavorable to the LRTA, which must be classified as justifiable ground," the complaint said. "To say otherwise is unwise," he stressed.