By Charlie V. Manalo
The Daily Tribune
The Daily Tribune
Noy’s cousin tried but failed to dictate bid terms to favor Czech firm
Ballsy and Eldon Cruz
The Czech extortion plot thickens. Accusations raised against presidential sister Ballsy Aquino-Cruz and husband Eldon of spearheading an extortion racket on Czech Republic train coach supplier Inekon Group for the MRT3 Expansion Project was substantiated by documents obtained by the Tribune pointing to the attempt of President Aquino’s first cousin, Jorge Aquino-Lichauco, to dictate on the bidding process for the train project to favor the Czech firm.
According to a Tribune source, Lichauco, son of Maria Aurora “Maur” Aquino-Lichauco, elder sister of the President’s late father, Benigno “Ninoy” Aquino Jr., has his imprints all over the “botched” Inekon bid for the MRT project, starting with the reported visit of Ballsy’s group to Prague, Czechoslovakia sometime in 2011 where they reportedly met with top government officials as well as with the top management of Inekon.
“What were Ballsy and her husband’s role in the Inekon negotiation, I don’t know. Are there any documents which would implicate them in this scandal, none so far. What were they doing there during the negotiation, I am as curious as you are,” the source told the Tribune.
“Obviously, money already changed hands over this deal that went sour at the last minute that is why the Czechs are fuming,” the source averred. “Having advanced money to their supposed backers and lobbyists, Inekon could no longer reduce their bid price to comply with the terms of the contract to compete with the other bidders,” the source added.
“Thus, the need to blame others to the extent of ruining their reputation; this is all about trying to save face,” said a source highly familiar with the whole affair.
Czech Ambassador Josef Rycthar, in his letter last June 29 to Aquino, exonerated Ballsy and her husband but insisted on the extortion allegation which he pinned on Department of Transportation and Communication (DOTC) officials.
“But what I have here are some pieces of documents and information which would reveal that one of their cousins, had been strongly lobbying and in fact interfering on official government business just to ensure his client gets the contract,” he added.
Following up on that trip, the source said the Inekon Group’s top management, aided by Yorgos Psinakis, nephew of Aquino businessman ally Steve Psinakis and Lichauco, made a visit to Manila in November 2011, where they met with then Transportation and Communications Secretary Manuel “Mar” Roxas and the management of MRT-3 to discuss Inekon’s plan to bid for the supply of coaches even as the project was still in its planning stage.
Psinakis, the “representative” of the Inekon Group in the Philippines and the nephew of Stavros ‘Steve’ Psinakis, the Greek son-in-law of businessman Eugenio Lopez Sr., according to the source, is a “good friend” of the Czech ambassador.
The source added that after the series of meetings between Inekon and DOTC officials, on April 24 in 2012, Psinakis wrote DOTC Undersecretary for Planning, Rene Limcaoco, dropping the name of the presidential cousin, in his follow-up for Inekon’s proposal.
“I was encouraged to send you this communication by Mr. Jorge Lichauco who has been gracious enough to bring this matter to your attention,” was Psinakis opening sentence in his letter, a copy of which was obtained by the Tribune.
Limcaoco, personally handpicked by Roxas from the private sector, has interest in the transport sector being the owner of the Golden Point Auto Care, operator of the Rapidé chain of car service garages while his family owns the company that locally distributes General Motors and Nissan vehicles.
Records from the Ombudsman showed that since being appointed to the DOTC two years ago, Limcaoco has been the subject of at least four anti-graft complaints for “conflict-of-interest” and non-divestment of his ownership in Golden Point, the later complaint being filed by the Anti-Trapo Movement.
Together with DOTC Undersecretary for Legal Services, Jose Perpetuo Lotilla, another Roxas appointee, Limcaoco oversees the bidding and awarding of multi-billion contracts at the DOTC involving railways and transport to include MRT-3.
Earlier this year, Lichauco, whom Commission on Elections records show has contributed along with his wife, Margarita Lopez, some P4 million to the campaign of his other cousin, Senator Benigno “Bam” Aquino in the last elections, submitted his own version of the terms of reference (TOR) which he proposed to be used in the bidding process for the acquisition of 48 new coaches for the MRT3 project.
Lichauco’s TOR, in turn, was forwarded by Limcaoco to MRT3 General Manager Al Vitangcol last April 10 of this year.
“We transmit herewith the Sample Terms for LRV Terms of Referecne from Jorge Lichauco,” Limcaoco stated in his cover letter.
A copy of both the TOR and Limcaoco’s cover letter were obtained by the Tribune.
According to the Tribune source, Lichauco’s TOR is so stringent it would have disqualified other suppliers who could offer lower price for the project, including the winning bidder, China’s Dalian Locomotive & Rolling Stock Co. CNR Group.
The source claims that aside from direct inputs from Inekon, the “sample terms for LRV terms of reference” was drafted with the help of Francisco “Inky” Lucban, a former director for policy and programs at the DOTC and Wilson de Vera, a businessman identified with PH Trams, which last year won the maintenance contract for the MRT3 over Sumitomo of Japan.
Lucban, who was reportedly sacked by Aquino’s first Transportation Secretary Ping de Jesus, has been trying to get back his old job at the DOTC through Aquino’s relatives but this was turned down by Roxas and current secretary, Joseph Emilio “Jun” Abaya.
Lucban and de Vera, the source said, are part of the Inekon lobby group who is also “well-known” to Lichauco, Psinakis and Rycthar.
“Had GM Vitangcol followed Mr. Lichauco’s TOR, it would have disqualified other biders who could offer lower price and would have ensured Inekon bagging the contract,” said the source.
Vitangcol, the source said, actually contemplated on using Lichauco’s terms of reference (TOR) as it had come from his superior, had it been transmitted earlier.
“If GM Vitangcol received Lichauco’s TOR as early as January or February this year, he might have used it,” said the source.
“But by the time it was transmitted by Usec Limcaoco in April, the TOR for the bidding for MRT3’s new coaches was already posted in the DOTC website,” the source averred.
“It was too late to change that,” the source added.
Apparently, with close Aquino family members active in lobbying on its behalf as well as internal help from the DOTC top management thru Limcaoco, the Inekon Group seemed headed for a “slam dunk” of a deal for the supply of the MRT-3 coaches.
Still, the deal, in the end, went sour through a series of events beyond the control of the lobbyists.
First, Vitangcol, who was forced to file a month-long leave of absence effective July 23 after being implicated by the Czech ambassador to the bribery scandal, did not accommodate the request of Limcaoco to use the TOR for the bidding prepared by Lichauco.
Then, Vitangcol, a civil engineer and a lawyer recruited by Roxas as general manager for MRT3 for his technical expertise, proposed to drastically reduced the bid price per coach from $3 million to $1.8 million.
With such drastic price reduction, the Inekon Group had to back off from the bidding, sources said, because it would not be able to recoup the expenses it had already doled out to its local lobbyists.
With such drastic price reduction, the Inekon Group had to back off from the bidding, sources said, because it would not be able to recoup the expenses it had already doled out to its local lobbyists.
Thus, after three bidding postponements announced by Limcaoco on separate occasions, Inekon did not participate in the bidding held last June 11 that was won by China’s Dalian Locomotive & Rolling Stock Co. CNR Group in the amount of P3.77 billion for 48 new coaches.
It was at that point, the source said Rycthar went to town claiming that Inekon was “blacklisted” by the DOTC and that the company’s officials were subjected to an extortion attempt of upwards to $30 million (later allegedly reduced to $2.5 million) for it to win the contract.
“Inekon was not blacklisted as claimed by ambassador Rychtar, they simply backed off after Lichauco’s TOR was not used enabling other bidders with much lower price to qualify,” said the source. “They were aware there was no way they could win in the bidding.”
Making matters worse, the source said, is that the bribery scandal raised by the Czech ambassador is now being used by groups identified with quino’s relatives to further delay the actual awarding of the MRT-3 contract to the Chinese.
“In the midst of the bribery controversy, Secretary Abaya announced last July 22 that the DOTC is now reviewing the bidding terms, which means another delay in the post-qualification process for the winning Chinese group of Dalian Locomotives,” the source said.
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