Gov't arsenal still using decades-old machines to make ammo – COA

From Rappler (Jun 26): Gov't arsenal still using decades-old machines to make ammo – COA

The Government Arsenal is still using 268 ammunition-producing machines aged between 12 and 39 years old due to a dispute with its foreign suppliers



Even with a modernization program in place, the Government Arsenal (GA) is still using decades-old machines to produce ammunition, according to the Commission on Audit (COA).

In its 2015 audit report released on June 21, COA revealed that the GA is still using 268 ammunition-producing machines aged between 12 and 39 years old due to a dispute with its foreign suppliers.

COA said that the GA, which is mandated to supply bullets to the Armed Forces of the Philippines and the Philippine National Police, is found to have “decreased operational efficiency” due to this issue.

In 2012, the GA ordered P336-million worth of machinery from Waterbury Farrel, a division of Magnum Integrated Technologies Incorporated of Canada, to improve its production of ammunition.

Out of the 5 machines purchased, 3 – a P72.72-million multi-station bullet assembly machine, and two case manufacture and cartridge assembly equipment worth P168.43 million – are yet to be delivered.

The supplier reportedly withheld delivery as that GA has not given full payment on the first delivery. The machinery in the initial delivery were found to be non-compliant with contract specifications, forcing the GA to stop paying the supplier.

A separate procurement contract for ammo loaders for 5.56mm and 9mm and an EDM die sinking machine worth P31.65 million also failed since none of the purchased equipment has been delivered.

“Stated operational capacity of the machines of 23 million per year failed to meet the expected target of 30 million pieces of bullets thus, the Government Arsenal resorted to importation of additional components to meet its obligations,” COA stated in its audit report.

COA has required the GA to demand the replacement of the expired P12.336-million performance security bond, and to seek payment of liquidated damages amounting to P22.306 million.

http://www.rappler.com/nation/137723-government-arsenal-old-bullet-machine-coa