Gazmin close to being pinned in chopper scam

From an opposition newspaper, The Daily Tribune (Jul 8): Gazmin close to being pinned in chopper scam

One of President Aquino’s closest Cabinet officials, Defense Secretary Voltaire Gazmin, is near to being pinned in the anomalous P1.2-billion deal for the rehabilitation of Armed Forces of the Philippines (AFP) helicopters as he was found to have allegedly signed the amendments to the contract agreement of the disqualified bidder.

At yesterday’s Senate hearing, it was noted that only two percent of the 35,000 contracts entered into by the Department of National Defense (DND) had undergone competitive bidding.

This means that 98 percent of the contracts inked by the government through DND were all negotiated deals.

In the continuation of the Senate blue ribbon committee investigation on the chopper deal, panel chairman Sen. Teofisto Guingona III said the revelation of Rhodora Alvarez, a Bureau of Internal Revenue (BIR) employee and a whistle-blower in the case, Gazmin, who was not present in yesterday’s hearing, will now have a lot of explaining to do.

Gazmin earlier denied before Senate probers the alleged irregularities in the AFP’s acquisition of refurbished helicopters.

Alvarez also pointed to Gazmin as having favored the winning supplier when he signed and approved the amended terms in the contract even after it was awarded.

She said Gazmin cannot deny knowledge of the revised contract given to the joint venture of Rice Aircraft Services Inc (RASI) and Eagle Copters since he signed it.

“It was evident that there was a violation of Republic Act 9184 (Procurement Law). It was obvious that Mr (Robert) Rice, (the winning supplier) was favored in the amendments of contracts that were approved by Secretary Voltaire Gazmin,” Alvarez said.

“Our law provides that (amendment) has to be done during the pre-bid conference not after the awarding of contract. In that alone the violation was too evident. Who signed the amendment of the contract, it was recommended of course by the CTRC and approved by SND (Secretary of National Defense), Secretary Voltaire Gazmin,” she added.

CTRC is the Contract Termination and Review Committee of the DND.

Alvarez, in her affidavit submitted to the committee, said there was a seven-percent commission to be given to Gazmin and a five-percent kickback for other officials.

Gazmin denied this in a letter submitted to the committee.

“Yes we will be calling him (Gazmin). If it’s true that he signed the amendments (to the contract agreement) then we will be calling him to shed light on the matter,” Guingona told reporters after the hearing.

“Only two percent out of the 35,000 contracts, underwent public bidding. That means all the other contracts were considered as a failed bid that were later on subjected to negotiated procurement. The DND tried to explain that most of the contracts were on the battalion level involving small purchases,” he said.

The matter of Gazmin being held accountable is not remote it will be established that he has some responsibility and liability over the negotiated deals.

“Well if ever, it (accountability) has to go up to the secretary, yes (it can happen),” Guingona said.
But they have to ascertain first whether there weres some violations committed especially on the issue of the P1.2 billion acquisition project involving UH-1 helicopters for the Philippine Air Force (PAF).

But this early, Guingona admitted that the decision of the DND and PAF (Philippine Air Force) to engage in a negotiated contract with Rice Aircraft Services Inc. (RASI) jointly with Eagle Copters Ltd. was highly questionable.

“But suffice it to say that there are a lot of questions on it. First about the bidding failure because of Rice (RASI), second bidding failure were also because of Rice (RASI). Third bidding failure happened and then came the negotiated contract. So it really puts a question in our mind. Is there something behind all these? Why negotiate the contract with the same person which caused the failed bids,” the senator said.

One of the documents submitted to the committee showed Gazmin being among the signatories on the ”amendment to the contract agreement”, notarized on June 28, 2014, in which the DND, among the provisions altered, agreed to forego to pre-delivery inspection.

In the supposed original contract, pre-delivery inspection was supposed to be conducted in the United States where the main office and hangar of RASI are located.

The department, based on the document, likewise acceded to remove some technical specifications for the UH-1 helicopters which were stated in the contract specifically on items listed under the “power train item.”

Under the contract the supplier is required to install mast, straps and main rotor trunnion assemblies that are in new surplus condition. This requirement was removed in the amended version of the contract.

RASI, Alvarez claimed, did not raise any issues during the pre-bidding process and it was only after DND awarded the contract to company that these were made.

The whistleblower earlier said the controversial procurement of the 21 helicopters by the DND was “tailor-fitted” to favor the joint venture of Rice Aircraft Services, Inc (RASI) and Eagle Copters, Ltd.
The amendments introduced were the exclusion of a pre-delivery inspection and the technical specification of power train. These were made upon the request of supplier RASI.
http://www.tribune.net.ph/headlines/gazmin-close-to-being-pinned-in-chopper-scam