Commission on Audit urged to probe P49-million substandard PNR railway ties

MANILA, Philippines - Agham party-list Rep. Angelo Palmones is urging the Commission on Audit (COA) to investigate the delivery of allegedly substandard railway ties, in a deal worth P49 million, to the Philippine National Railways (PNR).

He asked President Aquino to hold accountable PNR men involved in the anomaly once the COA confirms the irregularities.

“The involvement of the PNR general manager and key officers of the state railway firm should be investigated by COA, if not the Office of the Ombudsman,” he said.

Palmones said he received information that in 2010 the PNR bids and awards committee awarded two contracts worth P49 million to Nikka Trading.

The PNR required specifically yakal hardwood for bridge ties, joint ties and switch ties, he added. Nikka indicated that it was supplying larch wood, an “inferior” wood from China, Palmones said.

Palmones said PNR general manager Junio Ragragio did not stop the awarding of the contract and authorized the delivery of the wrong kind of wood. “Whoever is involved in this anomaly should be fired,” he said. 

Palmones said the PNR’s bid panel should have declared a failure of bidding when it found out that Nikka, the sole bidder, could only deliver larch wood.

PNR engineering inspector Edwin Balonog said he merely certified that the amount, not the kind of wood, delivered was correct.

Palmones said COA should determine the truth behind reports that Ragrario wrote a letter to the contractor approving the delivery of larch wood ties in lieu of the yakal ties “subject to due diligence to be conducted through the PNR engineering department.”