The Quezon City regional trial court (RTC) has been asked to nullify the P3.8 billion contract signed by the Department of Transportation (DOTr) in 2023 with a joint venture for the procurement of motorcycle and vehicle blank metal plates, radio frequency identification (RFID) stickers, hot stamping foil, thermal transfer ribbon, carton boxes, and plastic bags.

In a petition for prohibition and mandamus, the Ang Kaligtasan Sa Kalsada Association, Inc. (AKSK) sought the nullification of the contract with the joint venture of Trojan Computer Forms Manufacturing Corporation, Tonnjes C.A.R.D. International GMBH, and Trojan-Tonnjes Philippines, Inc.

AKSK asked the RTC to issue a temporary restraining order (TRO) to immediately stop the implementation of the contract.

Represented by its President Ariel P. Lim,  the group asked the court to “order the reimbursement of all amounts received by Private Respondent (joint venture), with legal interest rate."

AKSK said it filed the petition before the RTC after the DOTr “failed to respond” to its May 15, 2024 letter that sought to declare null and void the contract “due to the Winning Bidder’s non-compliance with the eligibility requirements.”

It alleged that the awarding of the contract should comply with Republic Act (RA) 9184, the Government Procurement Reform Act.

However, it said that based on RA 9184 it found as allegedly insufficient the joint venture’s submitted credit line, single largest completed contract (SLCC), and net financial contracting capacity (NFCC).

At the same time, AKSK told the court that the winning joint venture reportedly failed to present that it is capable of producing the specifications for the items being procured by the government since the document it presented was reportedly done not by a legitimate and independent laboratory but allegedly by its supplier.

“In the context of government procurement, if a purported winning bidder fails to comply with the eligibility requirements set forth in RA 9184 and its implementing rules and regulations, it lacks the legal capacity to enter into a valid contract with the procuring entity. As a result, any contract subsequently executed between the bidder and the procuring entity would be void ab initio (void from the beginning),” it also lsaid.

“Considering the patent insufficiencies in the submissions made by Public Respondent, the DOTr) should have disqualified the joint venture," it pointed out. 

Several consumer groups said the petition filed by AKSK on the alleged nullity of the P3.8 billion contract would threaten the efforts of the DOTr, through the Land Transportation Office (LTO), to address the backlog of license plates for motorcycles that was ordered by President Marcos himself to be addressed by June next year.