Claims of anomaly derail LTO project | Inquirer Business

Claims of anomaly derail LTO project

/ 11:54 PM August 01, 2013

Vehicle owners may have to wait a while longer for the release of new license plates as the Transportation department looks into allegations of anomaly in the bidding process conducted two months ago, according to Transportation Secretary Joseph Abaya.

The allegations, in particular, centered on the financial capacity of winning bidder J. Knieriem B.V. Goes (JKG) of the Netherlands and its local partner Power Plates Development Concepts Inc.

JKG and Power Plates bested seven other groups for the Land Transportation Office’s P3.85-billion motor vehicle license plates supply project.


In a text message, Abaya confirmed that the Department of Transportation and Communications had received two letters from bidders detailing the alleged irregularities.


“We are checking the allegations. We are also checking the finances of the entity,” Abaya said.

“In as much as we want to move forward, it also our obligation to study and properly respond to all queries and letters,” he added, referring to the delay in the release of new license plates.

One of the rival bidders, RNA Holdings Inc., which partnered with Polish firm Utal So. ZOO, questioned the existence of the “ASTM D 4956 8.5” standard, which is supposedly used by international testing bodies for evaluating the quality of reflective surfaces for traffic control purposes.

Robert N. Aventajado, RNA’s representative, had said that all bidders certified under oath that they had conducted tests under the supposedly non-existent standard.

This complaint was also raised in a July 23 letter to Abaya. He explained that the ASTM standard did not apply to the winning bidder since they used a European standard.

The opening of bids was held from May 6 to May 7.


JKG-Power Plates emerged the winner after it submitted the lowest bid. It proposed to supply vehicle license plates for P1.98 billion, and P1.196 billion for motorcycle plates, for a combined cost of P3.18 billion.

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TAGS: Business, DoTC, JKG-Power Plates, Land Transportation Office, license plates, LTO

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