Lawmaker takes aim at Duty Free Philippines

A pro-administration lawmaker called yesterday for an investigation into what he described as "a virtual monopoly of contracts" at the state-run Duty Free Philippines (DFP) shops.

In a privilege speech, Parañaque Rep. Eduardo Zialcita said DFP employees and stakeholders have expressed concern over businessman William Tieng’s increasing hold over supply contracts and his alleged cornering of concessions without any public bidding.

Tieng is now questioning the chocolate concession awarded to Eastern Duty Free, a private firm registered in the British Virgin Islands, under a negotiated contract approved by the Philippine Tourism Authority (PTA), he added.

Zialcita said employees have questioned the lack of action of DFP Employees Association president Al Bautista regarding the supply deals of Tieng.

"Secretary Roberto Pagdanganan, GM Michael Kho and Eastern Duty Free principal David Weille expressed their openness for the chocolate deal to be fully investigated by the authorities," he said.

"All three gentlemen have averred that the contract was ratified by the PTA board with faithful adherence in the long-established protocols of DFP for such contracts," he added.

Zialcita said since its inception in 1987, DFP contracts have never had to go through public bidding because of its specified nature as a duty-free retailer.

The Office of the Ombudsman and the Office of the Government Corporate Counsel have upheld this position many times in cases filed by disgruntled parties who were unsuccessful in winning contested parties, he added.

Meanwhile, DFP employees rallied in front of the House of Representatives yesterday to seek the help of Pampanga Rep. Juan Miguel Arroyo and Speaker Jose de Venecia Jr. to scrap the DFP-Eastern contract.

On the other hand, other DFP employees have condemned their colleagues whom they accused of being "paid tools" of a major supplier who wanted full control of the state-run firm.

"The rally is part of a grand design to monopolize the supply deals at the DFP and eventually unseat GM Kho," said the Progressive Members of the DFP Employees Association.

"We cannot anymore tolerate the manner by which some DFP employees have compromised their principle and integrity to promote the vested interest of a single DFP supplier."