Sepulveda: No 'midnight contract' at MCIAA

CEBU, Philippines – The former legal consultant of the Mactan Cebu International Airport Authority board said yesterday there was nothing irregular about the move of MCIAA to hire the International Civil Aviation Organization as consultant when MCIAA purchased the Instrument Landing System and Distance Measurement Equipment (ILS/DME) worth $2.2 million.

Atty. Rory Jon Sepulveda said the so-called "midnight contract" as alleged by self-styled anti-graft crusader Crisologo Saavedra actually underwent a "long discussion" with the Department of Justice.

"Nothing was rushed… taas ang proseso nga giagian," Sepulveda said, adding, that it is very unlikely for a developing country like the Philippines to enter into a mid-night deal with an agency identified with the United Nations.

Sepulveda said no less then ICAO project coordinator Capt. Peter Wells requested the DOJ for clarificatory opinion on certain legal issues relating to the interpretation of the provisions of the Civil Aviation Procurement Service (CAPS) Agreement.

One issue ICAO wanted DOJ to clarify was whether the proposed agreement is an exemption to the provisions of Republic Act No. 9184 or the Government Procurement Reform Act.

The DOJ pointed out Section 4 of RA 9184, which states that "Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine government is a signatory shall be observed."

"The proviso of Section 4 of the Government Procurement Reform Act is therefore applicable to the CAPS Agreement, there being a subsisting treaty or international or executive agreement, i.e, the Chicago Convention as authoritatively interpreted by the Contracting States, whose terms are incompatible with, or would modify the application of, the Government Procurement Law," said then DOJ secretary Raul Gonzales in a letter dated April 29, 2009.

Sepulveda said that when the ILS at the Mactan Cebu International Airport was damaged over a year ago, the original contractor estimated the repair to cost P180 million, which reportedly shocked the members of the board.

The board then sought assistance from the Civil Aviation Authority of the Philippines (CAAP), which referred the board to ICAO.

ICAO estimated the project to cost only P60 million, provided it will be the one to perform purchasing services in accordance with its established rules and procedures such as the bidding for the supplier.

ICAO, a specialized agency of the United Nations, offers, through its Technical Cooperation Bureau, technical assistance, including the procurement of technical consultancy and civil aviation equipment.

Earlier, in a complaint, Saavedra asked the Office of the Ombudsman-Visayas to investigate the contract between MCIAA and ICAO, saying it violated the procurement reform law because MCIAA hired ICAO allegedly without competitive bidding.

Saavedra said the country's procurement law does not allow bidding of government project outside the Philippines such as what reportedly happened in the purchase of the equipment.

Named in the complaint are MCIAA board members Governor Gwendolyn Garcia, Valeriano Avila, Renato Osmeña, Winglip Chang, and Gordon Joseph; MCIA General Manager Danilo Francia; Romeo Bersonda, ICAO and Philox (Philippines Inc.). (FREEMAN)