Lawmaker seeks probe of $200-million NRDC contract

A Mindanao congressman asked the House of Representatives yesterday to inquire into reported "anomalous" $200-million (P10.8 billion) contract for the replacement of old diesel jeepney and bus engines with reconditioned ones.

In seeking the inquiry, Rep. Arthur Pingoy Jr. of South Cotabato said, "this anomaly was confirmed by no less than retired Brig. Gen. Victor Corpus as the real reason why he quit his post as ex-officio chairman of the Natural Resources Development Corp. (NRDC)."

He said the contract implements the engine replacement program (ERP) that would compel jeepney and bus owners throughout the country to replace their engines in compliance with emission standards set under the Clean Air Act.

The principal agency in charge of enforcing the Clean Air Act is the Department of Environment and Natural Resources (DENR).

Pingoy said the board of NRDC, an agency attached to the DENR, is pushing for the ERP contract that was to be awarded to A.T. Intergrouppe Inc. (ATI) and Italian firm Iveco, one of the largest engine manufacturers in Europe.

The NRDC board is composed of DENR Secretary Mike Defensor, Transportation Secretary Leandro Mendoza, Trade Secretary Juan Santos, Finance Secretary Cesar Purisima, Economic Planning Secretary Romulo Neri, and Development Bank of the Philippines chairman Vitaliano Nañagas.

Pingoy said ATI would obtain financing for its contract with the state-owned Trade and Investment Development Corp. (formerly Philguarantee) as the guarantor.

He questioned the wisdom of the engine replacement program, saying the government, in enforcing the Clean Air Act, cannot act as a businessman or middleman by telling violators to replace their engines and get reconditioned replacements from a particular supplier.

The DENR and other enforcement agencies like the Land Transportation Office should just impound or refuse to register the non-compliant vehicles, he said.

However, he noted that these agencies have been lenient in enforcing the Clean Air Act.

Their laxity is evident in the many smoke-belching jeepneys, buses and other vehicles plying Metro Manila and the provinces, he said.

The more likely scenario is that there is corruption going on, he added.