Ex-NFA chief defends fertilizer deal

MANILA, Philippines - Bohol congressman and former National Food Authority administrator Arthur Yap denied yesterday allegations of discrepancies raised by the Commission on Audit (COA)regarding the NFA’s P432-million fertilizer procurement project with the Department of Agriculture in May 2003.

In response to claims by state auditor Flerida Jimenez, Yap stated that in March 2004 – as a result of COA’s February 2004 notice – it was found that “only a total of 198,654 bags of fertilizer amounting to P93.8 million was procured directly by NFA.”

He also informed COA that while the NFA was authorized to pursue a “negotiated procurement process,” the agency ultimately decided on an “abbreviated bidding, which was akin to the bidding procedure although with abbreviated timetables.”

“This was done to ensure transparency and to obtain better price offers that could be generated because of competition,” Yap said, explaining that such procedure “is not inconsistent with negotiated procurement.”

“The system adopted by the NFA required bidders to submit sealed price quotation in this instance. Surely, the authority for negotiated procurement includes the authority for an abbreviated bidding if it would help the procuring entity in obtaining the most advantageous price for the government,” he said.

With regard to questions on NFA’s sending of invitations to bidders, Yap said accredited suppliers were asked to submit their bids even if a bidding notice was already posted in the NFA website.

He said Philpos – which Jimenez found to be the only winning bidder in most projects – “may have been the only bidder in some areas since some bidders did not pass the eligibility requirement.”

“Under Executive Order 40 and Republic Act 9184, a lone bidder could be considered if the price offered is acceptable to NFA after passing all the requirements,” Yap said.

He also denied insinuations that NFA and DA, then under Secretary Luis “Cito” Lorenzo, were not in a hurry to purchase the powdered fertilizers in time for the May-October 2003 cropping season.

“The NFA and DA had planned that the distribution of the urea fertilizers should begin by June 2003. However, in the implementation of the plan, considerations on the price caused a delay in the award of the contracts,” Yap explained.

“Thus, the awards were not made until June 2003. But this does not mean that the DA and NFA were no longer in a hurry. The delay was not deliberate. It was brought about by the exigencies of the process,” he said.

Yap also rebuffed COA’s impression that Philpos rates were high, pointing out that prices of Philpos were “lower compared to the prevailing market prices.”

“Thus, there can be no question as to the propriety of the award of the contracts to Philpos. As we have shown, the NFA ensured that only the price most advantageous to the government would be obtained in this procurement project,” he said.