COA probes MRT-3 maintenance deals


A special team of the Commission on Audit (COA) will investigate three maintenance contracts entered into by the Department of Transportation and Communications (DOTC) for the Metro Rail Transit Line 3 (MRT-3).

The three contracts were for the maintenance service of the MRT-3.

In a letter dated June 15, the Special Services Sector of the COA’s Fraud Audit Office invited Transportation Secretary Arthur Tugade or his representatives “particularly from the Finance, Procurement, Contract Review and Documentation Division” to attend a conference on June 22.

“The conference will cover the introduction of the team, documents that will initially be requested, and other matters related to the audit,” the letter said.

The audit shall focus on the deals “for the procurement of maintenance provider of MRT-3 to determine the veracity of various allegations of irregularities.”

The Senate last month held an inquiry into the P3.8 billion maintenance contract granted to Busan Universal Rail Inc. and the MRT-3 capacity expansion project with Chinese firm Dalian Locomotive and Rolling Stock Co. amid questions on its legality


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1 Comment

  1. mabait na pinoy on

    Any government agency, such as the MRT should have had a well defined contracts, legal binding agreements between the two parties. At what extent of maintenance the contractors can do? Are repair activities included in the maintenance contract? Technically, maintenance and repair activities are two separate entities because performing a Preventive Maintenance Check and Services is checking the fluid levels to of the train’s braking system and replacing the brakes and testing them to make sure technical specifications are met, would fall under repair activities. With the price the MRT is paying for its maintenance contract, it should have covered any removal of defective parts and replacing it with good ones. “MRT Maintenance and Repair Contract” should be the title of the document and should have spelled out to cover everything, I mean everything that pertains to MRT. The main concern should be “to minimize any downtime that may unexpectedly occur.