P3.2-billion helicopter deal deferred

MANILA, Philippines – Defense Secretary Voltaire Gazmin deferred the contract to purchase seven attack helicopters from Poland worth P3.2 billion pending an investigation on alleged anomalies in the deal.

Gazmin designated Fernando Manalo, Defense assistant secretary for acquisition, installation and logistics, to head a board of inquiry to review the contract with PZL Swidnik, a Polish military and defense contractor.

He ordered Manalo and the members of the inquiry board to complete the probe within 30 days to determine whether to scrap the contract or not.

Defense department spokesman Eduardo Batac said that all contracts entered into by the previous administration would be reviewed to promote transparency in the military.

Assistant Secretary Ernesto Boac, who is also chairman of the Bids and Awards Committee (BAC), announced Gazmin’s decision to stop the enforcement of the contract with PZL Swidnik.

Boac made the announcement before the start of the post qualification meeting for the procurement project, with media men and a representative from the Makati Business Club (MBC) sitting as observers.

Several members of the House of Representatives and the media claimed that the contractors colluded among themselves so that PZL Swidnik would get the defense contract.

Boac said the inquiry would also question members of the BAC’s technical working group amid allegations that they could have colluded with PZL Swidnik.

After the executive session, members of the BAC formally opened the meeting and announced their support for Gazmin’s order to defer enforcement of the contract.

Representatives of PZL Swidnik present during the post qualification meeting did not offer any opposition.

“We in the DND (Department of National Defense) are sensitive to issues from the public as articulated in the media and amplified by some congressmen,” Boac said.

“This is a paramount issue that we have to take and we fully support the decision of the SND (Secretary of National Defense),” he added.

MBC representative Magdaleno Albarasin welcomed the decision of Gazmin. 

“It only showed that they (DND officials) are sensitive to criticism. That’s being democratic. They are open to suggestions. But it is important that the board will do a good job,” Albarasin said.

Bayan Muna party-list Rep. Teodoro Casiño had earlier raised suspicions during a military budget hearing two weeks ago, that the bidding for the procurement of the attack helicopters could have been rigged to favor PZL Swidnik after other foreign defense contractors backed out of the project. Casiño said contractors like Boeing, Asia Aerospace/MD Helicopter Inc., Eurocopter, Elbit System/Joavi Phils., and the Russian Federation had backed out from the bidding.

Batac earlier said that the other suppliers might have felt that they could not meet the requirements of the defense department.

The bidding for the attack helicopters for the Air Force was held last Sept. 9. Casiño also suspected that the contract was overpriced and even defense department officials admitted that the P3.2 billion was originally intended for 14 attack helicopters.

At the same hearing, Casiño also questioned why there was no overheard projector during the bidding process.

Aside from the attack helicopters, PZL Swidnik also bagged early this year the contract for delivery of eight utility helicopters to the Armed Forces of the Philippines worth P2.8 billion. Boac also headed the BAC during that time.

Boac said they need to look into these allegations, which is why they were deferring the post qualification and were creating a probe body.

He said that Gazmin also ordered the postponement of the bidding for the P850-million multi-purpose helicopters for the Navy to ensure that all of their projects are aboveboard and legal. 

Yesterday was supposed to have been the deadline for the submission of bid proposals for the contract. 

Defense officials gave the impression that PZL Swidnik was also the only firm to submit a proposal for the project.

Boac said Gazmin had assigned Defense Assistant Secretary Willie Palugod to head another board of inquiry to review the procurement of the navy multi-purpose helicopters. Palugod is vice chairman of the BAC.