Probe ordered on Puno's P52-M fire hose deal

President Estrada ordered yesterday an investigation into the alleged irregular purchase of P52 million worth of fire-fighting equipment under the term of former Department of the Interior and Local Government (DILG) Secretary Ronaldo Puno.

However, Puno, who has been appointed permanent representative to the United Nations, dismissed the charges as "absolutely ridiculous and malicious."

The transaction has been tagged as a "midnight deal."

"I did not sign anything and only referred the matter back to the Bureau of Fire Protection last month. All officers in the DILG know that I have been seeking clarification on this matter for 18 months," Puno said.

He also noted that he and his successor, former Manila Mayor Alfredo Lim, had started talking about transition even before the turnover last Jan. 10, adding he "did nothing more than attend to routine matters since the transition was already in progress."

Puno said his respect for Lim is "so high and absolute that I took special care to make sure the transition would be complete and transparent, leaving no gray areas."

He added that official documents on the issue were pending in Lim's office.

"The allegation that I supposedly endorsed the approval of this complicated transaction is totally unfounded," Puno said in a statement.

He clarified that any final action on the P52-million contract with Hennesy Marketing Inc. would have to be cleared first by the Commission on Audit, then the appropriate courts where a case involving the transaction is pending, before it is sent to the Office of the President for final approval.

Contracts involving more than P50 million must be cleared by Malacañang before it can be implemented.

"It is not within the sole authority of the Department (DILG) to decide on the matter," Puno added.

He assailed the report as another attempt at a smear campaign by parties with "personal axes to grind" against him in order to get back at him while he faces another round at the Commission on Appointments for his new designation as ambassador the UN.