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In a story by the South Korea broadcaster MBC reported in May, the Jeollanam-do (South Jeolla) provincial government announced that the Board of Audit and Inspection (BAI) had completed a review of how POSCO, maker of the Vectus PRT system, was chosen in 2009 as Suncheon's main partner on the personal rapid transit project. The review found that the four civil servants leading the project for the municipality violated procedures when they selected POSCO without a public selection process. They then staged an 'open' selection process as a coverup. [Transcript]

The BAI is South Korea's administrative oversight agency. BAI decides what projects it will audit and generally acts on information from whistleblowers, though it is not known if there was a whistleblower in this case. What is probable is that BAI reviewed the PRT project because it is very high profile, and reportedly is the biggest-budget project ever undertaken by the city of Suncheon.

The BAI did not respond to a request from NewsCenter seeking information.

The BAI found the four civil servants violated procedures in giving the design-build-operate contract to POSCO. Three were to be given official warnings, one was to receive a reprimand.

The four unnamed civil servants are:

• A Grade 4* General Manager in general administration
• A Grade 5 Section Chief in general administration
• Two Grade 6 employees in facilities management

In the story, "Silence on PRT civil service discipline controversy," MBC reported the disciplinary penalties are controversial among city employees. Some say even though rules were violated, much was accomplished and the project is considered successful.

Others say the penalties will make civil servants less open to taking risks. An unidentified city employee interviewed by MBC explained that officials could "avoid risk in order to avoid reprimands in the future."

POSCO/Vectus is doing business at Suncheon as Ecotrans Ltd. The PRT constructed by the project is a transit shuttle between the Suncheon International Garden Expo and the environmentally sensitive Suncheon Bay wetlands. The system is operating, and the vehicle fleet is gradually coming on line.

NewsCenter contacted Wooje Kim, Managing Director of Vectus' Korea branch. He stated that KRW65 billion ($59.5 million) had been spent on the project. Kim denied POSCO was at fault for the phony selection process, and that the BAI review was only an internal government audit. However Kim claimed the review delayed the project's completion.

On August 14 the Yonhap news agency reported Garden Expo organizers said the delay was "due mainly to problems in securing parts".

Yonhap also related statements that project funding was private. However the project is design-build-operate-transfer, meaning the city will receive ownership of the PRT after 30 years.

BAI's finding of wrongdoing makes sense to one PRT industry insider, who spoke to NewsCenter on condition of anonymity. "The first we heard about the selection of POSCO was when the project was announced," he said. But he thinks POSCO could have prevailed in an open and honest competition. Given the 5 kilometer long route and ridership levels, use of a power rail, and its higher top speed, Vectus has an advantage over battery powered pod systems like Ultra and 2getthere. Furthermore, selection criteria usually disqualify vendors that don't yet have test tracks and safety certification.

Daehan Won of Industrial and Systems Engineering, University of Washington, provided research and translation on this article.

* There are nine grades in the South Korea civil service system, with Grade 9 the lowest.
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* The width of single guideway is 1400mm/4.6ft (pods are 6.9ft-W x 12.2ft-L)
• Suncheon PRT will not launch on time, see 4-25-2013