Premature suspension

Just recently, there was news about a highly promising company being suspended for a limited period by the Department of Education (DepEd).

The news immediately caught our attention not only because the company, Philab Industries, has been making headlines lately due to its pioneering and innovative actions in the field of health science and education but also because its chairman and owner, Hector Thomas Navasero, had acquired a 67 percent stake in Alterra Capital Partners Inc. for P362.3 million.

Philab Industries is a pioneer in the country’s health science sector with six decades of experience and so when DepEd issued Philab a letter informing the company of the decision to impose a one-year suspension from participating in the department’s procurement process for one year after the firm supposedly failed to deliver on a contract last year, we immediately looked into it.

We have learned that the suspension was instigated by a complaint from a losing bidder, Multifocus Corp., which according to DepEd sources has a colorful history in its dealings with the DepEd.

We also asked Navasero about the suspension order. He said he was baffled by the suspension order which he claims has no basis.

According to DepEd, the suspension was due to partial termination of a contract to deliver educational materials to the agency.

But that is oversimplifying the whole matter.

Philab has emphasized that the main cause of the delays in its execution of the project is due to the enormous bureaucracy in government as inconsistencies in orders from the procuring entity.

In Philab’s case, the national head office provided the official notice to proceed with production based on a pre-agreed set of specifications. Several months after, however, they changed the specifications; otherwise, the mass-produced items will not be accepted.  Compounding matters was that no allowance for said change order was given.

The matter of the disputed delivery contract is now with the Office of the President where Philab has sent a letter of appeal last February and where the appeal is still pending.

And so obviously, the suspension order has no basis, until after the Office of the President says so.

In the meantime, it is business as usual, so to speak, for Philab.

Philab produces the dengue test kits under its trademark LABiT. It has delivered one million dengue self-test kits to the Department of Health. The portable test kit only needs three drops of blood and will help DOH rural health unit personnel to screen potential dengue patients before sending them to the town hospitals

Plans are also afoot to produce and market an array of new self-test kits, including Zika test kits, cardio test kits and those for tumors.

The company is likewise expanding its contribution to healthcare science and technology by bringing in the most advanced genome sequencing facility into the country.

The Illumina HiSeq X-Ten is touted to be the most modern of its kind and rated to provide whole genome sequences that can then help identify ailments and diseases one may be predisposed. This will therefore provide more reliable guidance on necessary lifestyle adjustments and even preventive medication.

Philab’s Genomics facility, expected to open shop middle of next year, will become  Asia’s first business-to-consumer genomics facility with a market potential of some four billion people in the region.

Now let us get back to Multifocus.

A DepEd insider revealed that Multifocus had initiated efforts to discredit its competitors in a bid to try and salvage its chances at reversing its disqualification from certain project bids.  

Allegedly, Multifocus has been accused of cheating its Chinese joint venture partner by letting the latter sign joint venture documents, including a joint venture agreement, when the partner did not know that they were entering into such joint venture in the DepEd bid.

But Multifocus needed a JV partner during said bid because they do not have any experience in completing a similar contract, the same sources revealed.

Our source also alleged that Multifocus failed to pay the Chinese after producing the orders. They junked their Chinese JV partner and looked for other providers, a move that is illegal since it violates the Procurement Law which stipulates that one’s JV partner in a bidding must be the same JV partner in the execution of the contract.

By the way, consumer group Filipino Alliance for Transparency and Empowerment has claimed that it has reports that Multifocus sponsored a junket to China for some DepEd inspectors to check the Cabinets subject of the bidding. After the trip, the inspectors supposedly changed the specifications of the school cabinets to suit their favored bidder.

Not so hidden agenda

GRAND WINE EVENT – The 16th Grand Wine Experience once again has proven to be the most spectacular wine and food event in Southeast Asia. With almost 1,500 guests in attendance, the Marriott Grand Ballroom was filled with the most distinguished guests from the industry and supported by the most notable businessmen of the country. Shown in photo is Ralph Joseph (center), Philippine Wine Merchants president, in a light moment with (from left) Kevin Tan of Megaworld; Hans Sy of SM Group of Companies; Kingson Sian, president of Resorts World Manila; and Harley Sy also of SM. This year’s edition was co-presented by Philippine Wine Merchants, Ralph’s Wines and Spirits, International Wines & Spirits Association, Philippine Airlines,  Department of Trade and Industry, Center for Trade Exposition and Missions. The Marriott Hotel event beneficiary is  Lingkod Kapamilya.

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