Lacson cites DND's possible violation of procurement laws

From the Philippine Star posted to ABS-CBN (Jul 13): Lacson cites DND's possible violation of procurement laws

The Department of National Defense (DND) may have violated certain procurement laws by not relegating the purchase of 21 ''Huey'' helicopters worth P1.2 billion to its end-user, the Armed Forces of the Philippines (AFP), former senator Panfilo Lacson said yesterday.

Lacson said the DND ''centralized'' the creation of the Bids and Awards Committee (BAC) instead of letting the AFP or the Philippine Air Force create their own bid committees to conduct procurement.

''The DND may have violated certain provisions of Republic Act 9184 or the Government Procurement Act, which defines clear exceptions for taking away from the procuring entity the procurement of the said helicopters,'' Lacson said in a statement.

The latest procurement, presently hounded by allegations of corruption, is under investigation by Congress for allegedly being a “supplier-friendly” deal.

Lacson added President Aquino and Defense Secretary Voltaire Gazmin should immediately order a review of the helicopter procurement to preserve the integrity of the entire AFP Modernization Program.

Lacson earlier aired concern over the emerging trend of making government procurement processes supplier-friendly, which ultimately leads to allegations of graft and corruption and the purchase of poor quality equipment.

''In the case of the purchase of UH-1D helicopters for the use of the PAF or the AFP, the DND should explain why it centralized the creation of the Bids and Awards Committee instead of allowing the procuring entity, which in this case is the AFP, to form its own BAC. In the first place, the approved budget for the contract is clearly defined in the General Appropriations Act based on the AFP Modernization Act,'' Lacson said.

Lacson, who authored and sponsored the passage of the amended AFP modernization law (RA 10349) in July 2012, was referring to the DND's controversial purchase contract with the joint venture of Rice Aircraft Services, Inc. and Eagle Copters, Ltd. sometime in December 2013.

The former senator said the revised implementing rules and regulations of RA 9184 provide that special BACs may be organized either according to geographical location of the procuring entity or by the nature of purchase to expedite the procurement process or “where the number and complexity of the items to be procured shall so warrant.”

''Such circumstances were not present in this case,'' Lacson said.

In fact, Lacson said, the law’s implementing rules and regulations also allow, if not encourage, the creation of similar committees at lower level offices when deemed necessary by the head of office.

“Even assuming that no provision of the procurement law was violated, the DND should have allowed the AFP to deal with its own procurement thus limiting their participation to supervision and oversight, unless they have undue interest in such procurement which is apparently the case based on revelations made,” Lacson said.

http://www.abs-cbnnews.com/nation/07/13/15/lacson-cites-dnds-possible-violation-procurement-laws