DOTr Revives PHP3.6-Billion Deal with Delinquent License Plate Suppliers

The Department of Transportation (DOTr) announced that it will revive its discontinued contract with Power Plates Development Concepts, Inc. and J. Knieriem BV-Power Plates (PPI-JKG) under the Motor Vehicle License Plate Standardization Program (MVLPSP) despite the suppliers’ alleged violation of procurement rules.

The contract, which was awarded to PPI-JKG in 2013, amounts to PHP3.6 billion and requires the supplier to deliver 15 million plates to the government agency within a five-year period. So far, only four million plates have been delivered, resulting in a backlog of 11 million.

The shipment of the plates was delayed at the Port of Manila after PPI-JKG couldn't pay the PHP40 million in taxes and Customs duties.

The Commission on Audit (COA) issued a notice of disallowance back in 2015 against the Land Transportation Office (LTO) for the PHP77.9 million advance payment to PPI-JKG for alleged irregularities in the allocation of the agency's budget. The COA lifted the disallowance notice this June.

Negros Oriental Rep. Arnolfo Teves Jr. sought a congressional inquiry into the DOTr's reported decision and warned the agency officials that they could face the wrath of the Filipino people if they were to revive the previously junked contract.

"This move by DoTr reeks of unpardonable graft, we can smell it right after Secretary Tugade gave the go signal to reevaluate the highly anomalous deal," said Teves, who is a member of the House Committee on Public Order and Safety.