National Printing Office blacklists printer for falsifiying financial statements

MANILA, Philippines - The National Printing Office has blacklisted a private security printer, banning it from joining any of their bidding for subcontracted printing contracts, for alleged falsification of documents particularly its financial statements.

In a 10-page resolution dated Dec. 1, the NPO’s Bids and Awards Committee headed by its chairman Eddie Barsaga Vista, ordered Marikina City-based Ready Form, Inc., an accredited NPO security printer, suspended and blacklisted for five years. The resolution was approved by retired police general Servando Hizon, the current NPO acting director.

“Respondent (RFI) intentionally reported the reduced amount of its net sales for 2006 in its financial statement by declaring only P78,639,134.73. However, its net sales alone in NPO reached P80,063,932.29. The under declaration was not only conscious and deliberate but also it was purposely done by respondent two years in a row solely intended to evade payment of correct taxes due to government,” the resolution said.

The NPO noted that in 2006, RFI only declared P78 million in income in its financial statement submitted before the Securities and Exchange Commission (SEC) wherein it generated an income of P80 million as an accredited security printer of the NPO. In 2007, RFI declared a P74 million income in its financial statement when it generated an income of P107 million, the NPO BAC also noted. The NPO BAC issued the resolution in response to a complaint filed by a rival NPO accredited security supplier Eastland Printing Corporation.

The committee noted that RA 9184 (Government Procurement Reform Act), falsification of financial statement was named as a clear ground for suspension or to be placed on blacklist as NPO accredited security printer.

“The same has already become final and executory since respondent neither filed a motion for reconsideration nor a petition for review to the Court of Appeals timely filed,” the NPO-BAC said. 

Suspended for one year

RFI, it was learned, was first suspended for one year on Dec. 22, 2008 for the same reason. An appeal was filed by the firm with the Office of the Press Secretary which supervises the NPO, but the appeal was dismissed and the imposition of administrative sanction for one year was affirmed.

RFI had earlier questioned the NPO’s authority and jurisdiction to hold public biddings for the printing contracts given to it by government agencies, saying that R. A. 9184 provides that government agencies can bid out the printing contracts on their own without going through the NPO.

RFI’s president, Guillermo Sylianteng also filed plunder charges against NPO executives that subcontract printing contracts, saying the practice has caused an overprice in the costs of printing government forms since the NPO charges a 15 percent fee.