Government flying school executives face graft raps over P25-million plane purchase

MANILA, Philippines - The Office of the Ombudsman has ordered the filing of graft cases against five officials of the Philippine State College of Aeronautics (PhilSCA) before the Sandiganbayan for their involvement in the allegedly illegal purchase of five Cessna planes worth P25 million in December 2008.

Among those to be charged are vice president for aeronautics Reynaldo Roca, acting supply officer Louie Timajo, chief aircraft mechanic Erwin Abon, and bids and awards committee (BAC) members Rex Noda and Romulo Tandoc.

The anti-graft agency said the respon-dents violated Section 3(e) of the Anti-Graft and Corrupt Practices Act by giving undue preference and benefits to a private firm that bagged the multi-million peso contract through negotiated procurement.

The Ombudsman said the flying school bought the planes even if Aviatour’s Fly’n Inc., did not submit the necessary documentary requirements. Aviatour’s is a Filipino firm that entered into a joint venture with Texas-based Aviatour, Inc. for the sole purpose of supplying the aircrafts.

The anti-graft agency also said the agreement between PhilSCA and the supplier frees the latter of any responsibility over the Cessna planes because the purchase was an “as-is-where-is” deal which states that the seller “does not provide warranty on spare parts.”

The procurement process was also allegedly railroaded since the PhilSCA officials were trying to beat the Dec. 31, 2008 purchase deadline given by the Department of Budget and Management (DBM), which issued a Special Allotment Release Order (SARO) for the project.

Graft investigator Ruth Laura Mella, after looking into the complaint filed by one Nilo del Prado against PhilSCA officials, said there exists probable cause to indict the respondents.

In her resolution, signed and approved by Ombudsman Ma. Merceditas Gutierrez, she said “the procurement process apparently had to be railroaded at the expense of full compliance with the requirements provided in the rules” considering that the deal was sealed on Dec. 12, 2008 or 19 days before the purchase deadline.

The resolution noted that based on documentary evidence, the contract between PhilSCA and Aviatour Fly’n Inc. was awarded and executed on Dec. 12, 2008 even if the supplier had not submitted documentary requirements four days later. The missing requirements include aircraft specifications, an updated mayor’s permit, an updated Bureau of Internal Revenue registration, a 2007 financial statement, and an updated certification of a local bank.

The Ombudsman said the contract should have not been awarded to the private firm also because it failed to show proof that the joint venture entered into by the local and foreign companies was 60 percent Filipino-owned as required by Republic Act 9184 or the Procurement Law.