The Palace said it will investigate allegations officials of the Department of Transportation and Communications (DOTC) tried to extort money from Czech Republic company Inekon in exchange for supplying coaches for the MRT 3 project.
"We are asking the Czech ambassador to, as in any accusation, present us evidence and we will investigate," said Presidential Spokesperson Edwin Lacierda.
He also denied Inekon was blacklisted from joining the bidding for the MRT 3 vehicles for supposedly refusing to give in to extortion demands.
"It's not true Inekon was not blacklisted... In fact, Inekon bought bid documents for that particular bid. But for one reason or another Inekon was not able to submit the bids," Lacierda said.
According to Transportation Sec. Jun Abaya, the charges of extortion have not been substantiated.
"We at the DOTC express in the strongest possible terms our commitment to fight corruption at all levels. We will take all the necessary steps to uncover the truth behind these allegations, which remain unsubstantiated at the moment," Abaya said in a statement.
He said his agency is investigating the allegation.
Watch the report here.