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COA asks LTO to blacklist license plate supplier

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MANILA, Philippines—The Commission on Audit wants a private contractor disqualified from future biddings of the Land Transportation Office for failure to comply with its contract obligation resulting in the delay in the delivery of motor vehicle license plates last year.

The supplier, GJB Enterprises Inc., was awarded a P21.3 million-contract to deliver 82,862 aluminum sheeting materials for motor vehicles and 39,922 sheets for motorcycle plates on Dec. 18, 2010, the Commission on Audit said in its 2011 audit report on the agency.

The supplier was supposed to deliver 25 percent of required aluminum plates within 30 days from the issuance of the Notice to Proceed on Jan. 3, 2011, but failed to complete the delivery within five months after the initial delivery.

In its report, COA discovered that the supplier still had a shortfall of 49,762 motor vehicle plates and 21,887 motorcycle plates as of end of last year.

The LTO said it had agreed to several extensions to enable the supplier to complete the delivery but as of June 30, 2012, or a year beyond the original deadline, 20,262 motor vehicle plates and 11,887 motorcycle plates were still undelivered.

Because of the short deliveries, LTO’s three-month buffer supply of sheeting materials were used up and caused massive shortage in the production of license plates last year.

In its reply to the LTO Property Officer on March 14, 2011, the supplier admitted that the delay in the delivery of aluminum sheeting materials was caused by “an unexpected disruption of production” suffered by their counterpart abroad resulting in temporary shutdown of the plant.

The LTO granted a 90-day extension on July 12, 2011, but did not specify the reckoning date.

As a result, the LTO management decided to forfeit the performance bond of the supplier of aluminum sheeting materials, rescinded the contract and required the supplier to pay liquidated damages.

It also collected a total penalty of P4,328,619.03 on the undelivered aluminum sheeting materials from the supplier.

The COA said the penalties were not enough and recommended the disqualification of the supplier from future biddings in the LTO until such time that the delivery under the previous contracts is completed.


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Tags: Audit , Business , Commission on Audit , GJB Enterprises , Government , Land Transportation Office , license plates

  • http://www.facebook.com/pages/Stop-Monopoly/134038403339475 88Cindy

    Ang masaklap pa nito, ay huhulihin ka pa ng MMDA dahil wala kang plaka.
    Within 7 days daw pagakabili ng sasakyan dapat ay may plaka nang nakalabit.
    Kasalanan na ng gobyerno (LTO & DOTC) ay huhulihin ka pa ng gobyerno (MMDA).

  • http://pulse.yahoo.com/_4R3GZTGML26TV2VGS6RVHP2THM Fred

    Kailangan pa bang sabihin ng COA sa LTO na edisqualify sa future biddings ang erring contractor? Hoy LTO, gising!

  • angeljme

    blacklist na agad ayan… di lang sa LTO na projects, but on all future government projects

  • http://profile.yahoo.com/MLD4OKCRPD4PLQOEWMYBRELWG4 Cola

    Dati na na may nanalo diyan maliban sa GJB.  Ewan lang bakit GJB lang na naman ang nanalo.

  • http://profile.yahoo.com/FMILZVJMPLRYOGFXL6PPNEVS24 Mike Arroyo

    Inuuna kasi ang komisyon bago sa kalidad ng serbisyo. Magsipag-resign na kayo mga gunggong.

  • akramgolteb

    GJB hindi naman talaga aluminum sheets supplier or trader. Sticker lang ang produkto bila. Dahil may tongpats ang mga taga LTO, pati aluminum sheets hawak na nila kahit wala silang capasidad para magsupply ng alum sheets.At ibig sabihin nito mas mahal ang benta nila ng alum sheets sa LTO dahil middleman lang sila.

  • manongcastro

    hey COA or corresponding government agency, GJB Enterprises Inc might not even be a registered company in SEC. May kumita na naman, awarding a big contract to somebody that has no experience doing it.

    In this day and age, I’m really surprised na nakakalusot pa itong mga ito at ginagawang tanga mga Pilipino.

  • http://twitter.com/erncastillo ern

    why ask? tell them!

  • muddygoose

    Pakipublish na rin kung sino mayari ng GJB Enterprises…

  • Weder-Weder Lang

    Wala bang pananagutan ang taga-LTO na pumili sa GJB Enterprises?

    • http://twitter.com/erncastillo ern

      kung nasa ayos ang prequalification, opening of bids and award, wala. Kaya nga may penalty provisions sa mga kontrata.



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