DILG employees seek financial probe on Kolonwel Trading

MANILA, Philippines - Concerned employees of the Department of the Interior and Local Government (DILG) have asked DILG Secretary Jesse Robredo and Bureau of Internal Revenue (BIR) Commissioner Kim Henares to look into the financial capabilities of Kolonwel Trading to undertake government supply projects and if it has been paying taxes properly.

In a letter dated Feb. 5, 2012 and addressed separately to both Robredo and Henares, the employees pointed out that Kolonwel is registered as a single proprietorship owned by a certain Juanito Tionloc.

The letter also informed the two officials that Tionloc also holds single proprietorship to Jodaar Cottage Industries, both of which have vied for and have been awarded supply contracts by various government agencies in the past.

The employees who wrote Robredo and Henares urging for the probe of Kolonwel as well as Jodaar said they received information from highly credible sources that the two firms’ capitalization is not sufficient for it to qualify for the multi-million peso government supply contracts it has won and also expressed suspicion that it has not been filing truthful and accurate income tax returns.

They are also wondering how Tionloc and his firms are able to win multi-million peso contracts with various government agencies and surmised that the former may have the backing of certain powerful government officials.

Earlier, Robredo, on the recommendations of the Bureau of Fire Protection, disqualified Kolonwel after it bagged a supply contract for P243 million worth of firefighting equipment to the BFP after it was found to have failed to comply with documentary requirements in accordance with government bidding procedures.

This is not the first time that Kolonwel Trading has been disqualified from bidding for a government project. During the time of former President Gloria Macapagal Arroyo, Kolonwel was also disqualified from bidding for a Department of Education (DepEd) contract for the supply of 17.5 million copies of textbooks and teachers’ manuals.

The company filed for a TRO against the DepEd and the DBM with Branch 18 Manila Regional Trial Court, which was granted last Dec. 4, 2006, but this was eventually reversed by the Supreme Court en banc, which also upheld the validity of the award of contract to two winning bidders.

Based on information provided by sources to The STAR, Kolonwel has also bagged supply contracts for Pagcor in just one year, which was 2007, for the following: 1,500 miniature slot machines for P4.25 million; 52 rolls of wooden table layout cloth and print chemicals for $213,685; three million decks of casino playing cards for $4.2 million; and 1,366 18 karat gold rings as loyalty awards for employees who have served for 20 years, but the contract amount was not known.

It likewise won the following year, 2008, a contract from the National Food Authority for the supply of low density polyethylene tubular type clear transparent food grade and odorless plastic bags for use by the agency in the following areas and with corresponding contract costs: Batangas, P10.22 million and P6.37 million; San Pablo City, Laguna – P6.875 million; and, Lucena, Quezon - P9.4 million.

An online search revealed that Kolonwel Trading is a supplier of orthopedic, prosthetic and surgical supplies. But in its own website, www.kolonwel.com, it states that it was founded in 1977 and claims to be “actively engaged in the international distribution of gaming supplies and equipment to the gaming industry worldwide,” and offers “a wide range of customizeable products, ranging from casino playing cards, slot machines, gaming table layouts and gaming chips and plaques.”