Congress urged to probe purchase of P1.15B spare parts

ANOTHER anomalous purchase made during the term of former President Gloria Arroyo was discovered by the Commission on Audit, this time involving spare parts for marine environmental equipment and lighthouses.

Two lawmakers want Congress to investigate the irregular procurement by the Department of Transportation and Communication of the spare parts worth P1.15 billion.

Bayan Muna Representatives Teddy Casino and Neri Colmenares said the DOTC should explain the excessive purchase of the spare parts intended for the Philippine Coast Guard. The two solons claimed the PCG was not aware of the purchase. 

They said the DOTC approved the purchase of the Marine Environmental Protection Equipment and Aids To Navigation spare parts for lighthouses nationwide.

The procurement had six corresponding Special Allotment Release Orders under the item National Oil Spill Contingency and Repair/Rehabilitation of Various Lighthouses Nationwide.

The spare parts were purchased by DOTC officials led by then Secretary Leandro Mendoza on December 23, 2009 for P319 million. They were supplied by R.H. Lopez Trading and Berlyn Enterprises, a Quiapo, Manila-based contractor under a purported joint venture. Berlyn Enterprises, a company owned by Chris Arcena, has been supplying materials and equipment of “small value use” to the PCG while R.H. Lopez Trading is a construction firm that has had several dealings with the Department of Public Works and Highways.

However, COA noted several irregularities in the transactions.  

First, the delivery of MEPE in February 2010 amounting to P319 million remained unbooked due to non-transfer of accountability. Second, the allotment intended for the PCG was not released to the agency but DOTC officials still used the same to purchase the equipment after the validity has lapsed. 

Third, COA said old SAROs were used to acquire the MEPE and ATON, amounting to P250.45 million.

Casino and Colmenares said the purchase was highly questionable because the agency that was to use the spare parts was never involved in the bidding and setting of terms of reference.

“In fact, the PCG was not aware of the procurement as evidenced by letters of then PCG Admiral Wilfredo Tamayo to the DOTC thanking the department for the information and stating that the PCG would utilize and deploy the MEPE and ATON on an “as the need arises” basis,” they said.

“It is outstandingly irregular for the DOTC to award to only two suppliers/contractors that are in a joint venture government contracts worth P1.15 billion despite the availability of many other suppliers that could deliver MEPE and ATON spare parts at possibly lower prices to the advantage of the government,” they said.