COA to Manila: Review parking meter project

The Commission on Audit (COA) has asked Manila Mayor Joseph Estrada to review the local government’s parking management project.

In a 2015 report released yesterday, state auditors said the city government entered into a Tripartite Memorandum of Agreement with Tokagawa Global Corp. (TGC) and Matsuyama Corp. in 2012.

The project involved the installation of a parking meter system and other devices along designated areas in the city.

Under the agreement, TGC and Matsuyama would manage the parking meter project and collect fees from motor vehicle owners around the clock.

The city government is entitled to 20 percent of the parking fees that will be collected for 25 years.

State auditors said the project was awarded without public bidding, under the BuildOperate-Transfer (BOT) law.

The COA report said the installation of parking meters was not covered by the BOT law.

The audit team said the agreement was grossly disadvantageous to the city government as 78 percent of collections from parking fees go to the private firms.

Records showed that for an investment of only P11.587 million, the contractors earned P152.306 million and P64.061 million in 2012 and 2013, respectively.

Estrada said the city treasurer’s office has taken control of the parking meter project.

He said he had terminated the agreement entered into by the administration of former mayor Alfredo Lim with the private firms.

Estrada said the contractors were able to secure a temporary restraining order (TRO) from a Makati City court.

“We posted a bond of P6 million and after a year, the court lifted the TRO. The city treasurer’s office is now managing the collection of parking fees,” he added.