Tuesday, March 3, 2009

On the Potential Multi-Million Peso Anomaly in the Government's Purchase of Fire Trucks


by Rep. Teodoro A. Casiño
March 03, 2009

Thank you, Mr. Speaker, distinguished colleagues. I would like to bring to your attention a potential multi-million peso anomaly in our government's purchase of fire trucks.

Mr. Speaker, my distinguished colleagues, the month of March, aside from being Women’s Month, is also Fire Prevention Month. This is so because the month of March signals the start of the summer season in the country, and fire incidents are usually at their high rate during this month. Kahapon lamang po, ay ilang sunog ang inireport sa mga balita.

We, in Bayan Muna, recognize the exemplary efforts of the ordinary men and women of the Bureau of Fire Protection and of the many volunteer fire brigades, and salutes them in their continued dedication to make everyone feel safe and away from the hazards of fire.

Kaya lang, Mr. Speaker, sa kabila ng ating pagpupugay sa ating mga bumbero, mukhang may ibang klaseng sunog na kumakain sa Bureau of Fire Protection. Ito ay ang sunog ng korapsyon.

In 2007 and 2008, the Bureau of Fire Protection purchased a total of thirty-seven fire trucks amounting to more than P342 million. Seven fire trucks were purchased in 2007, while records show thirty units were procured in 2008.

There were more purchases, Mr. Speaker. What is significant is that the purchase of these thirty-seven units did not undergo any public bidding. All these purchases were done through the procurement mode of direct contracting.

Under Republic Act No. 9184 or the Government Procurement Act, direct contracting may be resorted to by the concerned procuring entities only under any of the following conditions:

1. Procurement of items of proprietary nature which can be obtained only from the proprietary source, when patents, trade secrets and copyrights prohibit others from manufacturing the same item;

2. When the procurement of critical plant components from a specific manufacturer, supplier or distributor is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract; and

3. Those sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.

Mr. Speaker, my dear colleagues, I don’t think procurement of fire trucks falls under any of the said instances when direct contracting may be resorted to by the Bureau of Fire Protection.

Pinag-uusapan po natin ang tatlumpu’t pitong trak ng bumbero na binili ng Bureau of Fire Protection sa nakaraang dalawang taon.

In 2007, there were two tranches of funds totaling P37 million.

The first was for three units of 1,000-gallon water capacity fire trucks amounting to almost P20 million.

Then, two months later, another two units of 1,000-gallon water costing P17.6 million. The price increased in two months by 25%.

And third, two units of 300-gallon water capacity amounting to P12 million.

In 2008, a whopping P292 million were spent on fire trucks.

There were three units of 1,000-gallon water capacity amounting to more than P28 million. Notice that the price already increased from the previous year. From around P7 million, it was now P9 million.

A few months later, three units of 1,000-gallon water capacity amounting to more than P29 million. So the price increased to more than P9.5 million per truck.

And then, fourteen units amounting to P135 million, two units of which with 600-gallon water capacity amounting to P18 million and twelve units with 1,000-gallon water capacity amounting to P117 million. So the price again, after a few months, increased to P9.75 million per unit.

And then the clincher, ten units with 1,000-gallon water capacity amounting to P100 million. Umabot na po ng P10 milyon ang bawat isang trak. Ang kataka-taka po, Mr. Speaker, lahat po itong pitumpu’t pitong trak ay nabili ng walang bidding. Ni isa sa mga trak ay hindi dumaan sa bidding.

Paano kaya ito nangyari? At saka bakit pare-parehong specifications pero nagkakaiba-iba ang presyo, pataas ng pataas ang presyo sa loob ng ilang buwan lamang?

Sigurado po ako, sa halagang P342 milyon, hindi lang thirty-seven trucks ang kayang bilhin ng Bureau of Fire Protection, ang patong dito ay mahigit doble o halos doble ng presyo. Ang sabi nila, kapag duman sa bidding o kung dumaan sa bidding ang pagbili ng trak, sa halip na sampung milyo, makukuha mo lang ng kulang-kulang limang milyon ang isang trak.

Madam Speaker, prominent in these direct contracting practices is a company called Anos Research Manufacturing located at 4 Apo St. corner Quezon Avenue., Sta. Mesa, Manila. Documents I have showed that they supplied at last thirteen of these thirty-seven trucks, probably even more, that they were overpriced and that did not undergo bidding.

Ayon po sa aking source, may mga key players sa ibat ibang departamento na nagpo-proces nitong pagbili ng fire truck at ang mga ito ay kumikita, mga opisyal sa Department of Budget and Management, mga opisyal sa Department of Interior and Local Government, mga opisyal ng Bureau of Fire Protection at syempre ang manufacturer katulad ng Anos Research Manufacturing.

Meron naman daw sistema ng pagkakahati-hati ng tongpats dito sa pagbili ng fire truck. Very interestingly, the documents on the September 2008 purchase of ten fire trucks would show how fast the purchases were. The bidding was award nap o ang kontrata; after four days, nainspect na, nadeliver na; after nine days, lumabas na po iyong tseke. How’s that for speed, Mr. Speaker? Kung ganoon ho sana kabilis an gating mga bumbero tuwing may sunog, siguro ho wala nang madidisgrasya sa sunog.

Indeed, Mr. Speaker, there is something wrong with the direct contracting practice made by the Bureau of Fire Protection with one supplier cornering almost half of the purchases. This is a possible violation of the Government Procurement Act, a wastage of public funds and possible plunder.

Ang tanong, hindi pa nga ho natin alam kung nagmimeet ng required standards ang mga trak na ito.

Mr. Speaker, my dear colleagues, fire safety is of utmost concern for everyone. If we are to be serious about this duty, everything from the procurement of fire trucks and equipment to the rendition of services, must be done with good governance and public safety as our primary interest. Napakarami na hong reklamo ng ating mga kababayan at pati an gating mga bumbero sa kanilang mga pasilidad. Firetrucks pa lang ho ang pinag-uusapan natin dito, how about their coats, how about their boots? Iyong kanilang mga helmets, iyong kanilang mga guwantes, iyong kanilang mga breathing apparatus? Do these equipments also undergo the irregular system of direct contracting rather than bidding? We have to know, Mr. Speaker, this is Fire Prevention Month. And if we have to improve the services of our firemen, we have to stamp out corruption. We have to put out the fires of corruption in the Bureau of Fire Protection.

Mr. Speaker, I respectfully request that this direct contracting practice – I request that an investigation on this irregular and highly anomalous practice of the Bureau of Fire Protection in the purchase of fire trucks and possibly other equipment and supplies be investigated by Congress, possibly by the Committee on Good Government.

Thank you, Mr. Speaker. Thank you, my dear colleagues.###
Magparehistro na sa COMELEC (hanggang Oktubre 31, 2009 na lang). Karapatan mo ang makaboto sa Mayo 2010.
This blog was created on Aug. 10, 2009.