ECCP disappointed at gov’t over license plate project

Foreign business group European Chamber of Commerce of the Philippines (ECCP) has expressed disappointment towards different government agencies amid complaints and finger-pointing on the delay in the release of car plates pursuant to the license plate standardization project of the Land Transportation Office (LTO).

This is in reference to the contract awarded by the Department of Transportation and Communications (DOTC) to JKG-Power Plates, a joint venture between a Dutch and a Filipino company who won the Motor Vehicle License Plate Standardization Program of the LTO.

After conducting the bidding process, the DOTC signed a five-year contract with JKG-Power Plates in 2014 for the supply of vehicle license plates worth 3.18 billion.

On the basis of this signed contract, JKG-Power Plates delivered 877,166 pairs of MV plates, 2,370,006 pieces of MC plates, and 12,685 pieces of trailer plates worth 620.35 million. However, they have only been paid 477.90 million.

This is after the Commission on Audit (COA) disallowed additional disbursements for this project in July.

“It is simply unfathomable that the common principle of sanctity of contract can be completely disregarded here. How can the country attract foreign investors if even a signed contract offers no assurance that the other party, in this case the government, will respect it,” ECCP vice president Henry Schumacher said.

Still, Schumacher expressed hope that the COA will revisit its earlier position.

The business community warned that such uncertainty and unpredictability of policies stifles investment.

This, according to the group, will dilute the efforts of foreign chambers like the ECCP in promoting the Philippines as an investment hub in Asia.

“If this phenomenon continues, as we have seen in a number of other cases, including Piatco, Manila Water, Manila North Tollways Corp., to cite a few, foreign investors will look for more stable investment climates elsewhere. It will be no fun doing business in the Philippines,” Schumacher said.