Renewed 4 times
When Sumitomo’s contract expired in July 2010, it was given six-month maintenance contracts only. This placed Sumitomo in a bind as it required a longer time frame so it could estimate how much of maintenance inventory it needed to keep, which accounted for half of its$1 million monthly contract. Sumitomo repeatedly wrote to the Department of Transportation and Communications (DOTC) to request a bidding for a longer-term contract. DOTC didn’t reply at all.
He just signed it
Abaya, in a hearing the other day at the Senate, claimed he didn’t know about the firm’s background, and that it was Roxas who made all the decisions over the maintenance contract and the bidding for it. He said he just presumed that nothing was wrong with the contract so he signed the documents when he took over as head of the DOTC on October 19.
Scrimping on expenses
Scrimping on expenses as much as it could to make the contract hugely profitable, PH Trams didn’t build up a stock of spare parts and resorted to cannibalizing its other cars for the required parts. The result: the number of cars running at present stands at 14 at the most, down sharply from 70 when Sumitomo was running MRT-3.
Facebook: Rigoberto Tiglao