PCA fertilizer supply deal ordered probed

MANILA, Philippines - The Philippine Coconut Authority (PCA) has ordered an investigation into the alleged approval of an overpriced fertilizer procurement contract by its bids and awards committee (BAC).

According to food security chief and PCA board chairman Francis Pangilinan, the board audit committee has been instructed following a meeting on Wednesday to investigate the supposed overpricing.

The PCA is set to procure 39,000 bags of 21-0-0 ammonium sulfate for the fertilization of coconut trees infested by coconut scale insects in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon).

Pangilinan said the BAC approved a procurement price of P751.85 per bag of fertilizer for a total contract price of P29.25 million. He said the prevailing price of this kind of fertilizer is “less than P500 per bag at retail.”

“The BAC was asking us to approve a contract that could be overpriced by P10 million during the last board meeting. And when we raised our concerns on the price, they recommended a re-bidding of the contracts.” said Pangilinan.

Other than Pangilinan, the PCA board is composed of Cesar Collantes Villariba, Jr., former PCA administrator Oscar Garin, coconut farmer-leader Rafael Sarucam and Marcos Dumandan.

Pangilinan said the administrative investigation would be conducted over a period of 45 to 60 days.

“The contract will have to go through re-bidding. Penalties can range from suspension to dismissal depending on the gravity of the offense and the evidence presented,” he said in a text message.