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Author Topic: Glaring Corruption  (Read 916 times)

sal

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Glaring Corruption
« on: March 22, 2009, 06:49:11 PM »
SO THE PUBLIC MAY KNOW


BACOSH (Boholanos Against Corruption Oppression and Social Harassment) has been at the forefront on issues involving corruption, perceived anomalies and irregularities in governance to promote transparency  and ensure  accountability of our public officials.

Recent events unfolding on the alleged P168M heavy equipment bid rigging have prompted us to conduct an in-depth study on the issues involving the controversy based on documentary evidences culled from various sources.

We strongly fear a whitewash on the government probes on the matter based on our past experiences. More so, the review committee tasked to tackle the issues have conducted their meetings closed-door  despite clamor from the protestants and the media to attend such deliberations and the SP probe committee has yet to convene and start their own investigation.

In line with the intent of  EO 40 series of 2001 by the President of the Philippines and to cite some of its premises, we are compelled to take on the cudgels to inform the public of the following facts  surrounding this bidding controversy.
                                                              EXECUTIVE ORDER NO. 40
CONSOLIDATING PROCUREMENT RULES AND PROCEDURES FOR ALL
NATIONAL GOVERNMENT AGENCIES, GOVERNMENT-OWNED OR
-CONTROLLED CORPORATIONS AND GOVERNMENT FINANCIAL
INSTITUTIONS, AND REQUIRING THE USE OF THE GOVERNMENT
ELECTRONIC PROCUREMENT SYSTEM
WHEREAS, the principles of good governance call for transparency, accountability, equity, efficiency and economy in the government procurement process, and the eradication of malpractices, particularly graft and corruption;
WHEREAS, to enhance transparency in government procurement, the government shall encourage the public to monitor the procurement process and the awarding of contracts with the end in view of guaranteeing that these contracts are awarded pursuant to law.
What the BAC did    What is mandated by law under  the  IRR of RA9184 (IRR-A as amended,Fourth Edition,Government Procurement Policy Board,Technical Support Office, September 2007
1.Advertisement Period         Jan.7-21,2009                               Rule VI,Sec.17.5 “Prospective bidders shall  be given
2.Pre-Bid Conference               Jan.23,2009 at 10:00AM PGSO,   ample time to examine the bidding documents and to
                                                 Capitol Cmpd.,Tagb. City               prepare their respective bids.To provide ample time the
3.Issuance of Bid Documents January 23,2009                         concerned BAC shall promptly issue the bidding documents
4.Eligibility Check/Screening    February 9, 2009 at 9:AM,PGSO  for the contract at the time the Invitation to Apply for
   And Opening of Bids                                                                    Eligibility and to Bid is first advertised.”
5.Post-Qualification                  February 11,2009



Advertisement posted at:                                                             Sec.21.2.1 “Except as otherwise provided in Sections
1.   Sun Star Daily( Cebu)                                                      21.2.3 and 21.2.4  of this IRR-A and for the procurement
2.   Bohol Chronicle                                                                 of common-use goods and  supplies,the IAEB
3.   PGSO Bulletin Board                                                        shall be :
4.   Old Capitol Façade                                                           a) advertised at least once in one(1) newspaper of
5.   Provincial Library Lobby                                                        general nationwide circulation  which has been
6.   www.bohol.gov.ph                                                                 regularly published for at least two(2)  years
7.   Cebu Daily News                                                                  before the date of issue of the advertisement.”                                                                                                                                                               
   
Non-statement of the cost of bidding documents in the text of
Advertisement of the IAEB impairing bidders’ access to infor-
mation without further asking what Prov. Ord. 2004-21 is all
about.


“The BAC will issue bidding documents to interested                    Sec.21.1 “Contents of  the Invitation to Apply for
Bidders for the purchase of the above-mentioned equipment        Eligibility and to Bid.The Invitation to Apply for Eligibility
upon payment of a non-refundable amount pursuant to Prov’l.      and to Bid shall provide prospective bidders the following
Ordinance No. 2004-21.Payment shall be paid to the Provincial    information among others:
Treasurer’s Office from Monday-Friday,8:00AM-12:00NN and       6 The period of availability of the bidding documents,the
1:00PM-5:00PM.”                                                                                place where the bidding documents may be secured
and,where applicable the price of the bidding      documents.




The absence of the COA and observers in the proceedings.    Sec.13.1 “ To enhance the transparency of the process,the
                                                                                                         BAC shall,in all stages of the procurement process,invite,in
                                                                                                         addition to the representative of the COA,at least two(2)
                                                                                                         observers to sit in its proceedings:”
                                                                                                         
                                                                                                         Sec.13.3 “Observers will be informed at least 2 days         
                                                                                                         before the stages of procurement to which  observers shall
                                                                                                         be invited: pre-bid conference; opening of bids; post quali-
                                                                                                         fication: and contract award:and special meetings of the
                                                                                                         BAC.The absence of observers will not nullify the BAC
                                                                                                         proceedings,provided that they have been duly invited in
                                                                                                         writing.   

                                                           
                                           
                                          Memorandum Order No. 144

REMINDING ALL HEADS OF THE NATIONAL GOVERNMENT AGENCIES, GOVERNMENT-OWNED
AND CONTROLLED CORPORATIONS, AND LOCAL GOVERNMENT UNITS TO
FAITHFULLY COMPLY WITH SECTION 13, ARTICLE V OF REPUBLIC ACT NO. 9184, "AN
ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF
THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES,"
ON INVITATION OF NON-GOVERNMENT ORGANIZATIONS AS OBSERVERS IN THE BIDS
AND AWARDS COMMITTEE PROCEEDINGS

Pursuant to Section 13, Article V of Republic Act (RA) No. 9184 and its Implementing Rules and
Regulations (IRR), all heads of National Government agencies, government-owned and
controlled corporations, and local government units are hereby reminded to invite, in all stages of
the procurement process, in addition to the representative of the Commission on Audit, at least
two (2) observers to sit in Bids and Awards Committee (BAC) proceedings, one (1) from a duly
recognized private group in a sector or discipline relevant to the procurement at hand, and the
other from a non-government organization (NGO), in order to enhance transparency of the
procurement process.

Issued this 13th day of August 2004
By authority of the President:
(Sgd.) ALBERTO G. ROMULO
Executive Secretary


     
     In the light of the above facts, it is not for us to pass judgment on people and personalities involved in the
     controversy but to make the public aware of the complexities on issues involving government purchases .If
     there is failure of the BAC  to follow the prescribed bidding procedures there is a remedy provided for by law
     under Sec.41of the IRR which is to declare the bidding a failure and not award the contract and start the process
     clean and free from suspicions of any irregularity. The records show that the bidding as conducted lacked the
     competitive spirit of an open competition as there were only a few bidders and only one bidder for the entire
     list of equipment.

     The Implementing Rules and Regulations of RA 9184 (The Government Procurement Act) are procedural
     in nature and carefully address in detail the different situations relative to procurement. The  law is meant to   
     ensure transparency all throughout the process with the aim in view of  getting what is most advantageous to
     the government without restricting, suppressing, stifling or nullifying competition.

     Lest we be accused of obstructing the delivery of basic services to our provincemates, it is not our intention to
     derail the purchase of these heavy equipment but to ensure that the public interest is protected  amidst some
     serious questions on the conduct of the bidding.We cannot just let these things pass and allow haste in the use
     of valuable taxpayers’ money to be simply swept under the rug.

     In the course of our study we uncovered  and discovered some interesting facts.The Province a few years back
     had already bought some P50-60M worth of heavy equipment. If these aren’t enough then perhaps, a little delay
     to rectify the current purchase of additional equipment would not hurt its road maintenance capabilities or
     would it,considering that these equipment bought brand new are still serviceable and up to par ?

    Incidentally, one of the perceived favored parties to this bidding, has been involved in a Senate inquiry into the
    P 1.5B alleged rigged bidding of heavy equipment conducted by the NIA head office in Manila. Similar
    allegations of abbreviated time periods in the conduct of issuance of bid documents were raised.

    Quite interestingly this same company figured in the controversial overpriced purchase of  a backhoe by the
    Provincial Government a couple of years ago which resulted in a generous donation of goods to poor Boholanos
    by the grateful supplier.

    In the wake of controversies hounding our present government and perceived anomalous disbursements of
    public funds, we call on our fellow Boholanos to be more vigilant and our public officials not to play deaf and
    dumb to the clamor for transparency and accountability.

    TAMA NA SOBRA NA ANG CORRUPTION IN GOVERNMENT!
   
    It’s time we start cleaning our own backyard. 













ON ALLEGATIONS THAT SPECIFICATIONS FAVOR A PARTICULAR BRAND

Republic of the Philippines
Province of Bohol
City of Tagbilaran

PROVINCIAL MOTOR POOL OFFICE

EQUIPMENT SPECIFICATION

BRAND NEW DUMP TRUCKS (6 WHEELERS)
(Specifications (Minimum Requirements)

Engine                       :  6 cylinders diesel engine with in line, direct injection, watercooled, turbo-charged     
                                      intercooler
Power Output            :  205 horsepower
Dump Capacity         :   5 cu. m
Wheels/Tires             :   10.00 x 20 14 ply rating
Equipped With          :   Parts book, operations manual, standard tools, spare parts/filters for first service and stereo 
                                      cassette AM/FM radio, power steering system
Warranty                   :   Free (1) year on parts and services and must have an accessible service center in
                                      Tagbilaran City or Cebu City

                                      Winning Bidders shall provide trainings to operators, drivers and maintenance personnel of
                                      the end- user.
                                      Standard tools for Dump Truck  : Hydraulic Jack and Tire Wrench.


Prepared by:
(Sgd.)  ABRAHAM D. CLARIN                              (Sgd.) EDWIN T. VALLEJOS
           Department Head                                                      Provincial Engineer
   Provincial Motor Pool Office                                             Provincial Engineer’s Office
                                                             
                                                                                                                             
ENGINE SPECIFICATIONS OF THE FAVORED BRAND (NISSAN PKB210 SERIES)

Make and Model                                               NISSAN DIESEL MOTOR, FE6T
Type                                                                 4-cycle, direct injection, water-cooled, turbo-charged, diesel engine
Number of Cylinders                                       6
Bore x Stroke                                                   108x126mm
Total Piston Displacement                               6,925cm3
Max. Output (JIS)                                            151 kW (205 PS) at 2800 rpm
Max. Torque (JIS)                                           579 N.m (59kgf.m) at 1700rpm
Max. Engine Speed                                         3200 rpm
Compression Ratio                                          17.5
Lubrication System                                         Forced feed by gear pump
Cooling System                                               Forced circulation by centrifugal water pump

ENGINE SPECIFICATIONS OF ANOTHER BRAND (MITSUBISHI FUSO FP517 SERIES) FOR COMPARISON

CHASSIS MODEL                                         FP517 SERIES                     
Engine Model                                                  MITSUBISHI FUSO 6D24-0A
Type                                                                 4 stroke-cycle, water-cooled direct injection diesel engine
No. of Cylinders                                               6  in line
Bore x Stroke                                                   130mm x 150 mm (5.12 in. x 5.91 in.)
Piston Displacement                                        11.945 L (729 cu. In.)
Compression Ratio                                          19.5:1
Max. Output                                                    177 kW (240 PS) (JIS)
                                                                        170 kW (231 PS) (DIN)
                                                                        174 kW (233 hp) (SAE, Gross)
                                                                        at 2,200  rpm (36.7 r/s)(1)
   


EXCERPTS FROM THE MINUTES OF THE PRE-BID CONFERENCE ON JANUARY 23, 2009

“Engr. Clarin read the specifications of the eight (8) heavy equipment to be procured amounting to One Hundred Sixty Eight Million Two Hundred Ninety Six Thousand Pesos (P168,296,000.00). He emphasized that the technical specifications provided are the minimum requirements. He added that the Provincial Motor Pool at present has no fuel tanker and water truck. He further added that he preferred units the same with the existing units presently used in order to have possibility of cannibalizing some parts of the existing units in case the new units will bug down.”………….


“Engr. Vallejos said that the office has some existing units of the heavy equipment and they have proven that the performance and services of the said equipment are good. He added that it was being emphasized by the Governor to utilize some parts of the existing equipment in case the new equipment will bug down. He further added that being the end-users they have the preference to choose the units which has the same quality & specifications with the existing ones.”…….

“Atty. Namocatcat clarified that despite the preference of the end-users, it does not preclude suppliers to offer another brand of better quality than the existing ones.”…………..

“Engr. Vallejos said that the minimum specifications are already fixed and we cannot go down with the specifications being provided.”     


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fdaray

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Re: Glaring Corruption
« Reply #1 on: March 23, 2009, 12:22:41 PM »
Legacy group files petition with SEC for voluntary dissolution
By Zinnia Dela Peña Updated December 20, 2008 12:00 AM

The Legacy group of companies, facing serious liquidity problems, has filed a petition for voluntary dissolution with the Securities and Exchange Commission after shutting down its offices in Makati and Quezon City.

The group comprises pre-need firm Legacy Consolidated Plans Inc., Legacy Card Inc., One Realty Corp., Galacy Realty and Holdings Inc., Legacy Consolidated Asset Holdings Inc., Fusion Capital Corp., Conventional Realty Corp., Shining Armour Property Inc., Legacy Motors Inc. and Scholarship Plan Phils. Inc.

In its petition, the Legacy Group invoked Sec. 119 of the Corporation Code which states that “where the dissolution of the corporation may prejudice the rights of any creditor, a petition for dissolution of a corporation shall be filed with the SEC.”

The petition shall be signed by a majority of its board of directors or trustees or other officers having the management of its affairs, verified by its president or secretary or one of its directors or trustees and shall set forth all claims and demands against it, and that its dissolution was resolved upon by the affirmative vote of the stockholders’ representing at least two-thirds of the members.

SEC spokesperson Gerard Lukban said the SEC’s job is to assure that the Legacy Group’s assets will be distributed in an orderly manner. “We can’t force them to continue operating. We will provide a procedure for the liquidation of their assets. We need to know how much their total liabilities are,” he said.

Lukban said the group ceased operations in Dec. 8 without notifying the SEC.

But he refused to comment on whether the SEC is also looking at filing administrative charges against the group. He said, however, that planholders of Legacy Plans can file cases against the troubled firm.

The Legacy Group was earlier reported to have allegedly entered questionable activities including pyramiding, to lure depositors and clients to part with their hard-earned money. It reportedly offered returns of as high as 30 percent per annum on huge deposits.

In its petition, Legacy Plans said it is currently insolvent because its assets are no longer enough to cover its liabilities amounting to P1.06 billion.

It blamed the inhospitable and bleak market conditions as reasons for the decline in its investments.

“The management of Legacy Plans has come to the determination that the continued operation of the petitioner is no longer viable and will only result in more losses to the greater prejudice of all its stockholders,” Legacy Plans said.

Legacy Plans has appointed former SEC associate commissioner Danilo Concepcion as its liquidator.

Lukban said the Office of the General Counsel will set a hearing to discuss the orderly liquidation of the Legacy Group’s assets.

Legacy’s pre-need business started in 1997 when businessman Celso de los Angeles Jr. acquired Scholarship Plans Philippines Inc. (SPPI) and Legacy Plans Inc. (renamed Legacy Scholarship Pension Plans Inc. in 2000). Under new management, product innovations and aggressive marketing campaigns were implemented. In 1998, the company was granted permit to sell P1 billion worth of pension securities.

Legacy ranked 18th in 1999 and soared to 9th place in 2000 among the pre-need companies in terms of gross sales. In 2002, Legacy ranked 10th in terms of gross sales and second in terms of sales growth with a 519 percent increase in sales from the previous year.

Legacy expanded its institutional tie-ups with the military and teachers institution, a strategy which allowed it to penetrate a market of some 700,000 salaried military and public school teachers who were able to purchase education and pension plans thru salary deduction.

Continuing with its thrust and commitment to provide financial services, Legacy in 2002 acquired two other pre-need companies, All Asia Plans Inc. and Consolidated Plans Inc. The acquisition resulted to a broader market share with a wider client base.

Responding to the opportunities amidst the challenges and crisis besetting the pre-need industry in 2003, Legacy Scholarship Pension Plans and Consolidated Plans merged into Legacy Consolidated Plans Inc. The merger resulted to a paid-up capital of P198 million and an asset base of P3.6 billion.

The group eventually diversified into other segments of the financial services sector as it saw opportunities in motor and credit card industry, and thus founded Legacy Motors Inc. and Legacy Card Inc.

Legacy Motors Inc.offers automobiles and motorcycles to clients which are paid from the earnings of their deposits with the banks. Legacy Card thru its tie-up with Equitable Card Network Inc. and Japan Credit Bureau offered pre-need and bank clients with credit cards access to cash, products and services without touching their savings. Credit Plus Inc., a Hong Kong company, was also formed to operate money lending business to Filipino overseas workers.


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fdaray

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Re: Glaring Corruption
« Reply #2 on: March 23, 2009, 12:52:06 PM »
Legacy scandal is the worst corruption in the Philippines.
Kalooy sa mga pobre. Mabalik pa kaha ang ilang deposits?
Ma preso kaha ni si Delos Angeles?

Maayo lang ang atong governo bisan ug gi corrupt ang kwarta
wala gihapon mahurot tungod sa kadaghan.

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