Tuesday, July 7, 2015

Chopper supplier, whistleblower face off in Senate hearing

From the Philippine News Agency (Jul 7): Chopper supplier, whistleblower face off in Senate hearing

The officials of the supplier of the 21 units of refurbished helicopters for the Philippine Air Force (PAF) modernization and whistleblower Rhodora Alvarez faced off on Tuesday in the fourth Senate inquiry into the alleged anomalous Php1.2-billion transaction.

Robert Rice Jr., president of the US-based Rice Aircraft Services, Inc. (RASI), accused Alvarez of trying to extort money from them.

”She demanded for 15 percent commission after the awarding of the contract and once we denied her request because 15 percent was too much, she begins to back off and then insisted that she wanted 3 percent for commission,” Rice told the Senate blue ribbon panel chaired by Sen. Teofisto Guingona Jr.

Rice, who was seated beside Alvarez, clarified that even the three percent commission was not given to Alvarez because the former Bureau of Internal Revenue (BIR) employee has an accounted 210,689 dollars for the supposed payment of salaries of RASI’s Filipino crew in the Philippines.

The RASI officials claimed when they refused to pay Alvarez, she allegedly revoked the performance bonds for the contract which they paid for 121,460 dollars and another for 110,500 dollars after it expired.

Rice also blamed the delay in the delivery of the helicopters to Alvarez’s threats to file tax evasion charges against the RASI’s local crew.

In his Powerpoint presentation, Rice showed photos taken from her Facebook account showing Alvarez handing out money.

“This is Christmas time and she’s handing out money. She has two brand new vehicles, a brand new van and a brand new car in addition to the many vacations she’s taking as well. She brought her family to Hong Kong’s Disney land,” Rice claimed.

Rice accused Alvarez of using fabricated statement, adding “she made a lot of allegations and assumptions based on her lack of knowledge.”

Alvarez categorically denied Rice’s accusation that she tried to extort money from RASI, claiming she even mortgaged her condominium unit just to pay in advance the salary of the RASI’s Filipino crew in the Philippines.

”I was never an extortionist. My purpose of coming out is for the country because I don’t want our soldiers to be put in danger by flying helicopters which are not safe,” Alvarez said.

Meanwhile, Guingona described the exchange of accusations by Rice and Alvarez as secondary, insisting the main purpose of the Senate inquiry is to find out if the procurement laws have been violated in the acquisition of the UH-1D choppers from RASI.

”Regardless of the motives of these people, what important is whether the law has been violated, whether the specifications have been tailor-fitted to favor one supplier, whether they receive kickbacks and what we should be done to avoid this in the future,” Guingona said.

Guingona asked the Department of National Defense (DND) to prepare answer to Alvarez’s allegations that the Php1.2 billion contract for the purchase of the 21 helicopters was tailor-fitted to favor RASI which has already been disqualified three times in the previous biddings.

Guingona also asked to submit explanation on what he described as alarming data from DND which shows that only two percent or 650 out of 35,000 contracts of the DND have been approved after meeting required documents in 2013.

”This is very alarming figures. It’s certainly raises some questions which I hope you can answer in the coming days,” Guingona said.

Manalo explained that the contracts were mostly ‘small one’ by the field commanders of the AFP.

http://www.pna.gov.ph/index.php?idn=1&sid=&nid=1&rid=780160

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