Trillanes sought Senate probe P 1.15 Billion DOTC procurement scam

MANILA, September 23, 2011-Senator Antonio “Sonny” Trillanes IV, Chair of the Senate Select Oversight Committee on Government Procurement sought for a Senate probe on the alleged anomalous procurement of P1.15-billion worth of equipment by the Department of Transportation and Communications (DOTC) during the time of former Secretary Leandro Mendoza where he filed senate resolution number 609.

Trillanes measure directs the Senate Blue Ribbon panel and the Select Oversight Committee on Government Procurement and other relevant committees of the Senate to conduct a joint investigation into the alleged irregularities in the DOTC’s purchase of oil spill response equipment and lighthouse or aids to navigation (ATON) spare parts intended for the Philippine Coast Guard (PCG) in 2007.

“It is very alarming over allegations that those purchases were attended by numerous irregularities such as blatant violation of Republic Act 9184 – otherwise known as the Government Procurement Act of 2003 – as well as overpricing, falsification of documents, the use of fraudulent bank certifications and a tainted bidding process,” Trillanes said.

The young legislator said that his call for investigation is not only to determine compliance with RA 9184 but also to enact remedial legislation to strengthen said act and other relevant laws of the land.

Trillanes noted the allegations that the agency had used lapsed special allotment release orders (SAROs) for the purchases in the case of the questioned transactions.

The Department of Budget and Management (DBM) issued three SAROs amounting to P250 million, P300 million and P400 million, respectively, as funding for the upgrading and repair of various light stations in the country, and to cover the requirements needed for the PCG’s National Oil Spill Contingency Plan (NOSCP).

Trillanes said that under the NOSCP, the DOTC invited prospective parties to participate in the bidding of the Aids to Navigation (ATON) spare parts for the repair and maintenance of lighthouses nationwide and the Marine Environmental Protection Equipment (MEPE) and supplies.

Trillanes said that the DOTC proceeded to utilize the intended SAROs despite the fact that their validity had already lapsed in both cases, adding that the DOTC did not even bother to ask the DBM to extend the SAROs before pushing through the procurement process.

“The ATON spare parts were apparently procured even without any request and without the knowledge of the supposed end-user, the PCG.  Because of these, hundreds of millions worth of equipment and spare parts are rotting in the DOTC’s stockroom for over a year now.  Clearly, those responsible for wasting over a billion of the people’s money should be held accountable.  The money could have gone a long way in enhancing the capabilities of the PCG, if said money was spent properly.  This is clearly unforgivable.  If this is true, this is even bigger than the P728 Million fertilizer scam,” Trillanes explained. (Jason de Asis)