Plunder, graft raps filed vs GMA, Yap for ice machines

MANILA, Philippines - President Arroyo and Agriculture Secretary Arthur Yap were charged with plunder and graft before the Office of the Ombudsman yesterday.

In their complaints, Akbayan Representatives Rafael Mariano and Joel Maglunsod, along with Anakpawis secretary-general Cherry Clemente and Pambansang Lakas ng mga Mamamalakaya ng Pilipinas (Pamalakaya) leaders Fernando Hicap and Salvador France said Mrs. Arroyo and Yap should be held liable for violating the Anti-Plunder Law, the Anti-Graft and Corrupt Practices Act, and the Government Procurement Reform Act.

Mrs. Arroyo and Yap were accused of involvement in the purchase last year of allegedly overpriced ice-making machines by the National Agribusiness Corp., although they do not appear to have directly participated in the P455.7-million transaction.

They allegedly failed to stop Nabcor’s Bids and Awards Committee from awarding the contract to Integrated Refrigeration System and Services Inc. (IRSSI).

The complainants said Mrs. Arroyo and Yap should face plunder, graft, and other charges along with Nabcor officials headed by president Alan Javellana and BAC members led by chairman Romulo Arevalo.

However, Yap said in a statement that the Nabcor procurement of brine freezing machines was aboveboard.

“(It) went through public bidding under RA 9184,” he said. 

“This new technology - the Liquid Quick Freeze (LQF) method - is a local invention developed by Hermie Decena.”

Yap said he was not a part of the procurement process as he was neither the chairman nor president of Nabcor. “Not a single piece of evidence can show that I had intervened in the procurement process,” he said.

Yap said the complaint is a harassment suit that has no legal leg to stand on. “The question is not whether or not the procurement was forthright,” he said. “The question is, who is funding the harassment effort?”

Yap said they have information that a party, who is not even a bidder, but makes its money by joining biddings to extort money from other bidders, is behind the effort.

“We are compiling evidence against that group and will expose them at the proper time,” he said.

“We are urging the Office of the Ombudsman to study the complaint and in an act of justice, dismiss the same as soon as possible.”

On the other hand, Nabcor spokesperson Kathyrin Pioquinto said Pamalakaya’s plunder suit is based on “outrageous, malicious and politically motivated accusations that are obviously meant to thwart a laudable and legitimate project.

“This Nabcor project, which is part of the heightened DA program to build post-harvest facilities for farmers and fisherfolk, along with other agriculture sector stakeholders, is aboveboard and the public bidding was done in keeping with all processes required under the law,” she said.

Pioquinto said Yap had nothing to do with the project as he is not a member of the Nabcor board.

“Although Nabcor is a GOCC (government-owned and controlled corporation) attached to the DA, it is registered with the SEC (Securities and Exchange Commission) in accordance with the Corporation Code of the Philippines,” she said.

“As such, its corporate powers are exercised and all its businesses are conducted by its officers. The Secretary is neither an officer nor a director of Nabcor.”

Pioquinto said the contract was awarded to IRSSI because it was the only company among the four that had attended the public bidding for the supply of the machines.

“If they claim that they can supply the same freezing equipment using the same BIF technology at a much cheaper price, why didn’t anyone of them submit a formal bid during that public bidding, which they had attended anyway?” she said.

Other respondents

Alexander Leung, IRSSI president, and other company officials that bagged the contract were also named as respondents.

The ice-making machines were priced at P4,648,000 per unit, more than double the amount of a three-tonner ice-making machine, which is priced at only P2.3 million, according to the complaint.

Nabcor’s bidding process was rigged in favor of IRSSI, which should have been disqualified for failing to meet the requirements for private firms allowed to do business with the government, according to Akbayan, Anakpawis, and Pamalakaya.

“It must be stated that it was only in the year 2009, specifically in the month of July, that Triple 8 Agro Trading amended its Articles of Incorporation, changed its name to Integrated Refrigeration Systems and Services, Inc. and shifted, by amending the purpose for its creation, from trading into storage, preservation, and freezing of food products, presumably in anticipation of and in order to apply for eligibility to bid for the supply, delivery, and commissioning of 98 units (of) ice-making and liquid quick freeze machines of Nabcor,” read the complaint.

“There is therefore no proof that IRRSI or Triple 8 Agro Trading Inc. had been previously engaged in a similar project or contract as the one subject of this case. Given this fact, how then could IRSSI or Triple 8 Agro Trading Inc. be able to submit proof that it has completed a single contract for supply, delivery, installation and commissioning of ice-making machines and liquid quick freeze machines? But despite failing to meet the above-stated requirements under section 23.5.1.3 of the IRR (Implementing Rules and Regulations) of Republic Act 9184, which is a glaring fact, Nabcor and BAC approved the bid and awarded the contract to IRSSI.”

Yap was among those charged because Nabcor and its BAC fall under the direct control, supervision and direction of the Agriculture secretary, according to Akbayan, Anakpawis, and Pamalakaya.

“President Arroyo, being the head of the executive department that maintains over-all supervision and control of the Department of Agriculture, whom we can conclusively say to have knowledge of the project being as it is involving hundreds of millions of pesos, and which we can also conclusively presume to have knowledge of the bidding process undertaken by Nabcor and despite knowledge of the same, lifted no finger to void or discontinue the contract, is also equally liable,” read the complaint.