Gazmin vows transparency in deals

MANILA, Philippines - Defense Secretary Voltaire Gazmin vowed yesterday transparency in transactions with foreign governments assisting the military’s capability upgrade.

He allayed fears that the government-to-government or “G-to-G” transactions are prone to corruption since it would not be subjected to public bidding.

“In G-to-G transactions, there is no middle man, no commissions, no tongpats (kickbacks),” he said. “Under the Aquino administration’s transparency program, all contracts and processes are open for scrutiny and may be observed by the public.” Gazmin said they have more confidence in G-to-G transactions, which could expedite the procurement process.

“If a third party is involved, there will be commissions and the price will go up,” he said. “If the transactions are government-to-government, the officials involved in the deal will be accountable.” 

Gazmin said they are considering signing agreements with countries like the United Kingdom, South Korea, Italy, Brazil and France.

“We are completing our studies (on the procurement of military equipment) so that we can select the best possible option for us,” he said.

The G-to-G will be the mode of procurement of big-ticket items like ships, aircraft, and military communication systems, he added.

Previously, the government acquired several defense equipment through open and competitive bidding.

Earlier, Bayan Muna Rep. Teddy Casiño raised concerns over the DND’s plan to acquire military equipment through agreements with other governments.

Such setup provides opportunities for kickbacks since it does not go through public bidding, he added. The DND wants to implement 138 projects designed to upgrade the Armed Forces’ capabilities. 

It aims to approve the contracts of these projects by July.

The DND is seeking P75 billion to bankroll the military’s modernization program in the next five years.

Among the defense equipment to be acquired in the next five years are communications equipment, lead-in fighter trainer jets, closed air support aircraft, long range patrol aircraft, radar systems and engineering equipment.

The government is seeking to fast-track the military’s modernization which has been stalled by limited state resources.

The Armed Forces Modernization Act, which took effect on Feb. 23, 1995, has given the military the opportunity to modernize in 15 years with a total fund of P331 billion. 

The implementation of the law, however, has been stalled due to lack of funds. 

The law lapsed in 2010 without achieving its purpose of modernizing the military. Only P47.1 billion out of the P331-billion modernization budget has been released to the military as of end-2011.

Defense officials are now pushing for a law that would revive the Armed Forces Modernization Act and allot funds for the program.