IN THE KNOW: Vitangcol case

IN MAY 2014, Malacañang replaced Metro Rail Transit (MRT) General Manager Al Vitangcol III following allegations of conflict of interest in connection with an $11.5-million (P517-million) maintenance contract. The contract was awarded to Philippine Trans Rail Management and Services Corp. (PH Trams), whose incorporators included Arturo V. Soriano, an uncle of Vitangcol’s wife.

Prior to this, in July 2013, Czech Ambassador to the Philippines Josef Rychtar had accused Vitangcol of extortion for attempting to extort $30 million (about P1.3 billion) from the Czech train manufacturer Inekon Group in exchange for choosing Inekon as the supplier of 48 brandnew trains to the MRT.

In response to both accusations, Vitangcol maintained that his wife’s uncle had divested himself of his stake in PH Trams before it got the maintenance contract. He also denied the extortion charges.

In June 2014, the Office of the Ombudsman ordered an investigation on Vitangcol and businessman Wilson de Vera in the alleged extortion attempt, and for awarding without public bidding the MRT 3 maintenance contract to PH Trams, where De Vera was also an incorporator.

In September 2014, Vitangcol, Transportation Secretary Joseph Emilio Abaya and 19 others were charged with graft by the Ombudsman.

The charges stemmed from the December 1997 train maintenance agreement between the MRT Corp. as facility owner, and Sumitomo Corp. The agreement expired in June 2010 but was extended four times until October 2012.

Documents gathered by Ombudsman investigators showed that 15 days before the expiration of the last extension, the bids and awards committee adopted a resolution to get an interim maintenance provider for six months and negotiated its terms and conditions.