Mar hits P200-million equipment overprice; NIA chief denies claim

MANILA, Philippines - Senator Mar Roxas disclosed yesterday that the purchase of heavy equipment by the National Irrigation Administration (NIA) was overpriced by at least P200 million.

Roxas told reporters at the Manila Hotel that the Senate Blue Ribbon committee would conduct an investigation into the alleged rigging of the public bidding for the procurement of heavy equipment worth P1.4 billion by the NIA.

“My estimate is around P200 million to P300 million,” Roxas said of the alleged overprice, adding that the Senate investigation would be conducted to prove his claims.

“This is another example of an anomalous bidding (where) the government chose the more expensive equipment,” Roxas said.

A group of concerned citizens led by lawyer Rex Bonifacio earlier questioned the NIA bidding for heavy equipment that was conducted in December 2008.

Bonifacio said there were four suppliers who initially qualified in the pre-bidding. But for reasons not specified by NIA officials, two of the bidders were disqualified.

Roxas said these bidders are the undisputed leaders in the tractor and heavy equipment industry in the country.

He said the contract was already awarded to the winning bidder, but the senator could not immediately identify the company.

Roxas said the NIA-Bids and Awards Committee (BAC) violated the system of competitiveness thereby raising a well-grounded belief of collusion when it awarded the contract to the winning bidders, Transport Equipment Corp. (TEC) and Civic Merchandising Inc. (Civic) despite the fact that their respective bid prices were 20 percent higher than that offered by the disqualified bidders.

Reports said the winning bidder stands to receive the approved contract worth P1.4 billion for the procurement of 139 units of crawler-type 0.80 M3 capacity hydraulic excavators, 69 units of crawler-type 0.50 M3 capacity hydraulic excavators and 15 units of 25-tonner trucks for the restoration of irrigation and drainage canals nationwide.

Roxas said that after he learned of the alleged anomaly in the bidding process, he directed his own staff to check the prices of the equipment being sold by private firm and his people found out that the government paid a higher amount for the heavy equipment.

He said the anomalous bidding could lead to another fertilizer fund scam at the Department of Agriculture.

Former agriculture undersecretary Jocelyn “Jocjoc” Bolante allegedly diverted P728 million that was supposed to purchase fertilizers for poor farmers. The fertilizer fund was allegedly distributed to political allies of the Arroyo administration for the 2004 election campaign.

Some lawmakers claimed that the NIA anomaly could be part of another fund raising effort for the campaign of administration candidates for the 2010 elections.

Roxas filed Resolution No. 880 seeking an inquiry by the Senate Blue Ribbon committee into the alleged bid rigging and collusive practices of two firms with the NIA-BAC.

The senator cited data received and gathered by his office showing how the NIA-BAC allegedly manipulated the bidding for the purchase of the P1.4 billion-worth of equipment to limit the number of participants in the bid project.

He noted how the NIA set up stringent rules and an impractical bidding period during the invitation to bid process, which it published only once on Dec. 16, 2008 in an advertisement that came out in one of the country’s newspapers. The public bidding was scheduled on Jan. 16.

Roxas said that because of the short and limited period for the purchase of the bid documents, plus the fact that the announcement came out too close to the Christmas break, only a number of contractors were able to submit their bid proposals.

‘No anomaly’

NIA Administrator Carlos Salazar denied there was any anomaly in the bidding for the heavy equipment and restoration of drainage canals.

In a forum in Manila, Salazar said NIA strictly observes the provisions of Republic Act 9184 or the Government Procurement Reform Act to promote fairness among contracting parties in the government.

Salazar said NIA is now evaluating the bidding process after two bidders disqualified by the Bids and Awards Committee filed a motion for reconsideration.

He said the two bidders reportedly failed to submit the complete documents for eligibility to bid as mandated by the Implementing Rules and Regulations of RA 9184.

“There is no award yet of contract for the said bidding, contrary to reports,” Salazar clarified.

“There is also no irregularity in the bidding process as claimed by certain sectors whose purpose is to distort facts and place the agency in a bad light,” he said.

Salazar stressed that bidders who passed the initial stage of the bidding process may still be found ineligible in the post-qualification phase, if they fail to submit proper requirements under the government procurement law.

He said NIA strictly observes the provisions of RA 9184 to ensure the proper procurement of equipment. – With Aurea Calica and Manny Galvez