DOTr imposing sanctions on errant plate manufacturers
Published Sep 13, 2018 12:00 am
By Emmie V. Abadilla
The Department of Transportation (DOTr) will impose sanctions against Power Plates Development Concepts, Inc. and J. Knieriem BV Power Plates for allegedly violating their car plates supply contract with the government.
(DOTr) Secretary Arthur Tugade
“The Land Transportation Office (LTO) is now computing the penalties for late deliveries in the past,” DOTr Secretary Arthur Tugade confirmed.
Under the contract, PPI-JKG committed to supply 15 million new plates within a five-year period. However, of these 15 million plates, the company has delivered only four million, resulting in a backlog of 11 million.
Nonetheless, the P3.6-billion contract of PPI-KPG for the delivery of car plates under the Motor Vehicle License Plate Standardization Program will remain the same, according to Tugade.
“There will be no reduction in the contract price. It will remain the same. The savings generated due to change order (from finished plates to blank plates) will be used for the additional delivery of blank plates and RFID stickers,” he added.
Furthermore, “there is no legal basis to cancel the contract,” according to a DOTr statement issued earlier.
“In January, 2018, the Supreme Court lifted its Temporary Restraining Order and dismissed the petition questioning the constitutionality of the procurement, while the Commission on Audit (COA) lifted its Notice of Disallowance on the advance payment for the deal last July, effectively clearing the contract of irregularities,” DOTr clarified.
Negros Oriental Rep. Arnolfo Teves Jr. intend to file a resolution questioning the DOTr’s decision to reconsider the allegedly anomalous contract.
Aside from violating Republic Act 9184 – the Government Procurement Act, the car plate supplier allegedly committed violations of critical provisions of its multi-billion contract, such as sub-contracting resulting to the delivery of sub-standard product output, the solon maintained.
The COA on July 13, 2015 issued a notice of disallowance against the P477.9- million advance payment made by the LTO to PPI-JKG for alleged irregularities in the allocation of the agency’s budget.
The Supreme Court also stopped the DOTr and LTO from distributing 700,000 pairs of license plates turned over by the Bureau of Customs (BOC) to LTO after outgoing Abakada Party-list Rep. Jonathan A. dela Cruz and incumbent Parañaque City 2nd District Rep. Gustavo S. Tambunting questioned the implementation of the LTO-MVLPSP in light of the COA order.
The shipment of plates was stalled for a year at Manila port after PPI-JKG failed to pay its P40-million taxes and Customs duties.
However, last January 23, 2018, the Supreme Court, declared the funding for the MVPSP was constitutional. This paved the way for the release to motorists of 700,000 license plates turned over by the BOC to the LTO.
The SC ruled that the 2014 GAA included an appropriation for the program and the use of the appropriation is constitutional.
Six months after, the COA also lifted the notice of disallowance against the LTO license plate standardization program.
(DOTr) Secretary Arthur Tugade
“The Land Transportation Office (LTO) is now computing the penalties for late deliveries in the past,” DOTr Secretary Arthur Tugade confirmed.
Under the contract, PPI-JKG committed to supply 15 million new plates within a five-year period. However, of these 15 million plates, the company has delivered only four million, resulting in a backlog of 11 million.
Nonetheless, the P3.6-billion contract of PPI-KPG for the delivery of car plates under the Motor Vehicle License Plate Standardization Program will remain the same, according to Tugade.
“There will be no reduction in the contract price. It will remain the same. The savings generated due to change order (from finished plates to blank plates) will be used for the additional delivery of blank plates and RFID stickers,” he added.
Furthermore, “there is no legal basis to cancel the contract,” according to a DOTr statement issued earlier.
“In January, 2018, the Supreme Court lifted its Temporary Restraining Order and dismissed the petition questioning the constitutionality of the procurement, while the Commission on Audit (COA) lifted its Notice of Disallowance on the advance payment for the deal last July, effectively clearing the contract of irregularities,” DOTr clarified.
Negros Oriental Rep. Arnolfo Teves Jr. intend to file a resolution questioning the DOTr’s decision to reconsider the allegedly anomalous contract.
Aside from violating Republic Act 9184 – the Government Procurement Act, the car plate supplier allegedly committed violations of critical provisions of its multi-billion contract, such as sub-contracting resulting to the delivery of sub-standard product output, the solon maintained.
The COA on July 13, 2015 issued a notice of disallowance against the P477.9- million advance payment made by the LTO to PPI-JKG for alleged irregularities in the allocation of the agency’s budget.
The Supreme Court also stopped the DOTr and LTO from distributing 700,000 pairs of license plates turned over by the Bureau of Customs (BOC) to LTO after outgoing Abakada Party-list Rep. Jonathan A. dela Cruz and incumbent Parañaque City 2nd District Rep. Gustavo S. Tambunting questioned the implementation of the LTO-MVLPSP in light of the COA order.
The shipment of plates was stalled for a year at Manila port after PPI-JKG failed to pay its P40-million taxes and Customs duties.
However, last January 23, 2018, the Supreme Court, declared the funding for the MVPSP was constitutional. This paved the way for the release to motorists of 700,000 license plates turned over by the BOC to the LTO.
The SC ruled that the 2014 GAA included an appropriation for the program and the use of the appropriation is constitutional.
Six months after, the COA also lifted the notice of disallowance against the LTO license plate standardization program.