Friday, May 15, 2015

Suppliers file graft complaint against Army chief over P97.8M delayed ammo deals

From InterAksyon (May 15): Suppliers file graft complaint against Army chief over P97.8M delayed ammo deals




A graft complaint was filed before the Office of the Ombudsman against Philippine Army chief Lt. Gen. Hernando DCA Irriberi by three defense and military suppliers in connection with three ammunition supply projects worth a total of P97,789,500.
 
President Aquino appointed Irriberi as Army chief in February 2014. The Department of National Defense had previously been rocked by corruption issues, such as the P1.2-billion 21-secondhand Huey helicopter contract, the P1.9-billion deal for almost 60,000 M4 rifles, the 3,480 defective armor vests worth P120 million, among others.

InterAksyon.com tried but failed to get the side of Irriberi as his spokesman, Lt. Col. Noel Detoyato, did not respond to repeated calls and text messages to his mobile phones.
 
The nine-page complaint, a copy of which was obtained by InterAksyon.com from a source at the Office of the Ombudsman, was filed on May 5, 2015 by Roperlynn Comahig, a representative of the Joavi Philippines Corporation (JPC) with office based at Unit 8J, Forbeswood Heights, Tower 2 at the Bonifacio Global City in Taguig City.

The company is reportedly managed and operated by businesswoman Jocelyn Magcale, who is said to maintain "deep connections" at the Department of National Defense (DND) and Armed Forces of the Philippines (AFP) when it comes to "big-ticket items" for the Army.

Magcale could not immediately be reached for comment.

Based on the document, JPC is "a domestic corporation engaged in the business of supplying defense and military equipment, among others, and representing foreign entities that supply defense and military equipment in procurement activities of the Philippine government."

JPC's foreign partners in these projects include Talon Security Consulting & Trade Ltd. (TSCTL) and Kompanija Sloboda, A.D. (KSAD).

The suppliers charged Irriberi with alleged violation of Section 3(f) of Republic Act 3019.

In the complaint, Irriberi was accused of unexplained delay in issuing necessary documents for the suppliers to comply with on-schedule delivery of the items as prescribed by the Procurement Law.

The projects include the procurements of 1,635 rounds of 105mm HE with Fuze under Contract Number (ORD) 074-10-11 worth P49,050,000; 1,650 rounds of 105mm HE with Fuze under Contract No. (ORD) 090-11-11 worth P44,500,000; and 1,862 rounds of 40mm AGL ammunition under Contract No. (ORD) 098-12-09 worth P4,189,500.

JPC claimed that the projects were awarded to them through "public biddings" from 2010-2012 but because of the non-issuance of requisite documents, such as End-User Certificate (EUC) and Notice to Proceed by the Army chief, the contracts were shelved by the Contract Termination Review Committee (CTRC).

But through appeals and negotiations, the CTRC eventually approved amendments to the contracts and then resolved and recommended their implementation at the start of Irriberi's term. It also imposed on the suppliers "ten percent (10%) liquidated damages and the amendment of the contracts instead of their rescission."

But, complainants alleged, Irriberi refused to act on the amended contracts despite "reasonable follow ups".

The P4.19 million contract is well within the P25-milliom limit procurement authority of the Army chief, while the P49M and P44.5M contracts have to be endorsed by the Army chief to the level of the Chief of Staff of the Armed Forces of the Philippines (AFP) for approval, as his office has only up to P50-million worth of allowed projects to approve and implement.

"This unwarranted and protracted delay of more than six (6) months to merely endorse Contract Nr (ORD) 074-10-11 and Contract Nr (ORD) 090-11-11 only shows that respondent Irriberi knowingly discriminates against JPC and its partners, and is deliberately sitting on these contracts to either selectively prejudice JPC or to force to give him some unwarranted pecuniary benefit," the complaint stated.

It said Irriberi's inaction derailed JPC's performance of its contractual obligations and therefore caused it to incur more liability.

"Undeniably, respondent Irriberi's inexplicable neglect to perform his duty and outright refusal to act on these contracts smack of discrimination against JPC and its foreign partners," the complaint said.

http://www.interaksyon.com/article/110598/suppliers-file-graft-complaint-against-army-chief-over-p97-8m-delayed-ammo-deals

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