Friday, February 27, 2009

Bohol bans tarsiers display

By Kit Bagaipo
Philippine Daily Inquirer
First Posted 18:13:00 02/26/2009

TAGBILARAN CITY, Philippines — An international wildlife foundation has lauded Bohol lawmakers for its landmark legislation banning the viewing of tarsiers outside of their natural habitats.

The praises from the Born Free Foundation, an international wildlife charity group based in the United Kingdom, came even as local businessmen who had been displaying tarsiers for tourist viewing lobbied for the scrapping of the provincial ordinance.

Despite the ordinance's passage by the provincial board last February 3, Bohol Governor Erico Aumentado had not signed the measure as of Thursday.

The Born Free Foundation thanked the Bohol provincial board for introducing the ordinance, which they called "forward thinking" and a "compassionate decision."

The letter from BFF senior scientific researcher Chris Draper was received by Board Members Alfonso Damalerio II and Esther Corazon Galbreath.

"The Philippines can be justifiably proud of this legislation, and it is our hope that other regions and countries may look to your example when considering similar legislation," Draper said.

The foundation is working throughout the world to stop individual wild animal suffering and to protect threatened species in the wild.

In a visit to Bohol last January, a television crew of the British Broadcasting Corporation (BBC) featured the tarsiers in one of its documentary that will be shown all over the world.

The BBC crew, headed by celebrated British TV presenter and author Simon Reeve highlighted the need for rescue and care of the endangered species that are caged and displayed outside its natural habitat.

The provincial ordinance was adopted after calls to rescue the vulnerable tarsiers from its misery in tiny cages and give them lifetime care at spacious sanctuaries such as the 8-hectare sanctuary of the Philippine Tarsier Foundation in Corella town.

However, Damalerio also expressed disappointment over moves of some business establishments to block the implementation of the new ordinance.

"Instead of cooperating to return the tarsiers to the wild, most of the businesses engaged in the display of tarsiers are lobbying for the scrapping of the law," said Damalerio who is the principal author of the ordinance.

Thursday, February 26, 2009

Another supplier files protest against bidding

By Kit Bagaipo
Another disenfranchised supplier filed a protest at the Bids and Awards Committee (BAC) and the Sangguniang Panlalawigan (SP) yesterday in connection with the questioned P168-million bidding for the purcahse of brand new fleet of heavy equipment.
In the face of denials by BAC chair Engr. Rosalinda Yu and a finding by Provincial Legal Officer Atty. Handel Lagunay that there is no basis on allegations of a rigged bidding, Cebu-based Pasajero Motors Corp. (Pamocor) complained it was wrongly disqualified in the bidding.
This despite having submitted the lowest calculated bid for the supply of 10 units of dump-trucks with an approved budget of the contract (ABC) of P40,800,000 among three declared eligible bidders.
Last February 18, Yu informed Pamocor through a letter that its bid failed the post qualification process on the ground that the submitted "experience of relevant/similar projects do not conform with a value of at least 50-percent of the ABC" which is P20,400,000.
In its letter to the BAC, Pamocor noted that in the Invitation to Apply for Eligibility and to Bid (IAEB) that appeared in at least three publications, it was cited that "Prospective bidders should have experienced in undertaking a similar project within the last 5 years with an amount of at least 50-percent of the proposed project for bidding."
According to Pamocor, the bid documents issued and the recent letter of the BAC notifying Pamocor of its failure to pass the post qualification process "uniformly used the phrase 'experienced in undertaking a similar project'".
The supplier added that there was no instance that the term "largest single contract" was mentioned in the said communications.
With the absence of such specification, Pamocor argued that this indicates the "unqualified intention of the BAC to entertain and admit aggregate similar contracts costing at least 50-percent of the ABC", and not only of a largest single contract.
Pamocor said what was published and made known to the public should be observed and followed, or else, the intention of achieving transparency in the public bidding will be defeated.
Pamocor claims it has submitted a list of similar projects it had previously undertaken costing more than the required 50-percent of the ABC.
The supplier likewise informed the BAC of an amendment on the rule issued by the Government Procurement Policy Board (GPPB) which states that when a failure of bidding has resulted because no single bidder has complied with the said requirement, or imposing the same will likely result to a monopoly that will defeat the purpose of public bidding, the procuring entity may qualify a prospective bidder that has qualified at least three similar contracts, with the aggregate contract amounting to at least 50-percent of the ABC.
During the post qualification of bids, the BAC concluded that three items out of the 8 heavy equipment bid out failed. This included the bidding for 2 units of backhoe/hydraulic excavator with breaker with an ABC of P16,236,000; 2 units of bulldozers with ripper with an ABC of P36,372,000; and 10 units of dumptrucks with an ABC of P40,800,000.
The BAC also revealed that four suppliers already passed on the four items bidded out.
The qualifying bidders include JVF Commercial (Quezon City) to supply 4 units of brand new articulated motor road grader with an approved budget for contract (ABC) of P34,000,000; Civic Merchandising (Mandaue City) to supply 4 units of brand new road roller/vibratory compactor with an approved budget of P14,432,000; Isuzu Cebu Inc. (Mandaue City) to supply a brand new 6-wheeler water truck with pump with an approved budget of P4,720,000; and RDAK Transport Equipment (Cebu City) to supply a brand new 6-wheeler fuel tanker with pump.
The BAC will conduct "further post qualification" proceeding on the tendered bid of JVF Commercial to supply 2 units of brand new payloader with an ABC of P17,136,000 in order to conduct "technical inspection and testing" of Holland, the firm's offered brand.
According to Pamocor, the rule's amendment should be observed by the BAC and award the supply for 10 dump trucks to them.
OTHER LAPSES
Lawyer Salvador Grupo, who represents protesting Japanese heavy equipment dealer Kowa Tsusho Ltd., said Capitol's denial of a rigged bidding based on findings by Atty. Lagunay is "just a mere scrap of paper" as this was meant for review of the governor.
According to Grupo, the BAC's admission that two suppliers obtained bid documents while Kowa Tsusho did not, only heightened suspicions that there were indeed favored contractors.
He said the presence during the bidding process representatives of the Commission on Audit, a non-government organization and the Bohol Chamber of Commerce and Industry was also not observed by the BAC.
In a letter to Board Member Bienvenido Molina, Grupo urged the SP to "take appropriate action, including a formal investigation" into the proceedings of the heavy equipment bidding.

Saturday, February 21, 2009

Capitol denies "bid rigging"

Tagbilaran City, BOHOL-

Two Capitol officials found no improprieties in the conduct of bidding for P168-million worth of heavy equipment to be purchased by the provincial government.
Provincial Legal Officer Atty. Handel Lagunay conducted an assessment on how the Bids and Awards Committee (BAC) carried out the procurement process upon orders issued by Gov. Erico Aumentado who earlier declared a war against corruption at the Capitol.
Said to be the biggest single purchase of heavy equipment in recent years, the bidding took the spotlight after a disenfranchised Japanese supplier filed protests to the BAC for allegedly giving “undue advantage to preferred suppliers”.
Meanwhile, during the Sangguniang Panlalawigan (SP) session last Tuesday, provincial Board Member Cesar Tomas Lopez lashed out at the committee for its “failure to comply” with key provisions of the procurement law that again placed the provincial government “in a bad light due to the fact that the manner by which goods [are purchased] cannot face up to public scrutiny”.
However, Lagunay stressed there is “no basis to the allegation that the bidding for the P168-million heavy equipment is rigged”.
“The BAC followed the rules and procedures under RA 9184 (Government Procurement Law) and its implementing rules and regulations (IRR),” Lagunay said.
Speaking during the weekly radio program “The Governor Reports” on Friday, the provincial attorney recommended to the governor that the BAC should proceed as “there is no basis” to conclude that the bidding is a failure.
Lagunay also recommended that the protest filed by Japanese supplier Kowa Tsusho Ltd. be resolved first before the procurement contract is awarded to winning bidders.
Likewise, Provincial Administrator Atty. Tomas Abapo Jr. also believed that the BAC and its technical working group (TWG) “have done what is right and the bidding process had been done right since the start”.
Abapo recalled how he reminded BAC chair and General Services Officer Engr. Rosalindo Yu that “the bidding should be above board” considering the huge amount involved, and “there will be pressures along the way”.
4 SUPPLIERS PASS
During the post-qualification of bids, the BAC revealed that four suppliers already passed on the four items bidded out.
The qualifying bidders include JVF Commercial (Quezon City) to supply 4 units of brand new articulated motor road grader with an approved budget for contract (ABC) of P34,000,000; Civic Merchandising (Mandaue City) to supply 4 units of brand new road roller/vibratory compactor with an approved budget of P14,432,000; Isuzu Cebu Inc. (Mandaue City) to supply a brand new 6-wheeler water truck with pump with an approved budget of P4,720,000; and RDAK Transport Equipment (Cebu City) to supply a brand new 6-wheeler fuel tanker with pump.
The BAC’s post-qualification marked the other 3 items bid out as “failed” which includes the bidding for 2 units of backhoe/hydraulic excavator with breaker with an ABC of P16,236,000; 2 units of bulldozers with ripper with an ABC of P36,372,000; and 10 units of dumptrucks with an ABC of P40,800,000.
The BAC will conduct “further post qualification” proceeding on the tendered bid of JVF Commercial to supply 2 units of brand new payloader with an ABC of P17,136,000 in order to conduct “technical inspection and testing” of Holland, the firm’s offered brand.
ONLY 28 DAYS REQUIRED
In the complaint of Kowa Tsusho, the company alleged that considering the amount and nature of the project, Sec. 21.2.2 of the IRR-A of RA 9184 should have been observed before opening of bids, which is a maximum of 50 calendar days from the date of advertisement or posting of the Invitation to Apply for Eligibility and to Bid (IAEB).
According to Kowa Tsusho, there was no ample time to prepare the bid because they only had 16 days to comply with requirements since the pre-bid conference on January 23, 2009 up to the deadline of submission of bids on February 9.
Lagunay clarified that the 50-day period does not apply to the procurement of heavy equipment as it is clearly a purchase of goods needed in the pursuit of a government undertaking, project or activity.
Thus, under the IRR-A of RA 9184, to complete the entire bidding process only 28 calendar days is required, he explained.
NO POSTPONEMENT ALLOWED
Lagunay continued that there is “no provision in the IRR-A which allows the BAC to postpone the bidding at a request of a prospective bidder”.
He said that this would only be perceived as “giving of undue favor to the disadvantage of the other bidders [who] managed to submit their bids as scheduled”.
The provincial attorney also noted that it was precisely requested by the equipment end-user that they expect to “take advantage of favorable weather conditions during which the heavy equipment will be used in the repair and improvement of provincial roads”.
Moreover, Lagunay did not find any deviation of the BAC from the IRR-A with regards to the publication of the IAEB in newspapers based in Cebu City that are being circulated in other parts of the country.
“In fact, we had participating bidders coming from Quezon City [which] bolsters the fact that the said newspapers are of nationwide circulation,” he stressed.
ABSENCE OF DOCUMENTS
On the allegation by the prospective bidder that bid documents were not provided at the time the IAEB was first published and posted nor at the time of the pre-bid conference, Lagunay said that this allegation was denied by the BAC.
According to the BAC, even as the issuance of bid documents was set on January 23, 2009, it does not mean that the documents were not available to the bidders right after the IAEB was first posted or published.
The BAC said that two bidders were able to get bid documents immediately after the pre-bid conference.
“After carefully reading letters of the counsel of the prospective bidder (Kowa Tsusho), it was found out that there was no allegation or statement that the prospective bidder ever asked for copies of the bids documents…”
Meanwhile, clarifications on some specifications of the heavy equipment to be purchased would naturally crop up during the pre-bid conference as this is the time where details of the equipment are discussed whether it is responsive to the needs of the procuring entity.
MINIMUM REQUIREMENTS
According to Lagunay, the BAC and the TWG stressed that the specifications were only minimum requirements of the heavy equipment.
“The preferences on specifications are only descriptive but not restrictive,” he said. “Any bidder who can offer equipment with specifications which are above the minimum requirement is not precluded from participating the bid and can be ultimately awarded the contract.”
“There should be no confusion between preferred specifications on one hand and a preferred brand or bidder in the other,” Lagunay explained.
The preferred specification of an equipment is a vital factor in awarding the project, Lagunay concluded.

War vets warned of fixers

TAGBILARAN CITY, Bohol -

Aging and sickly Boholano World War II veterans are warned by their post commanders to be cautious of fixers as the American government starts processing their money claims amounting to almost half-a-million pesos each.
In a meeting held yesterday at the JJ’s Seafoods Village, war veteran post commanders were advised to personally process their claims at the AFP Central Command, Camp Lapu-lapu, Lahug, Cebu City, Feb. 24 to 26, to avoid syndicates of fixers and to fast track the issuance of their checks.
The benefits provide a tax-free, one-time $9,000 (roughly P430,000) non-service connected compensation for veterans who are not US citizens, and $15,000 (roughly P717,000) for veterans who are US citizens.
All war veterans must receive their individual’s claim not later than February 16, 2010.
Rafael Bon, 86, the post commander of Panglao told the Chronicle that each veteran will be interviewed personally at the PVAO office at Centcom.
This is to ensure that they are not victimized by fixers who ask as much as a 50-percent cut with the assurance that money claims are released easily.
According to Bon, veterans who are already bedridden and physically unable to travel to Cebu City will be interviewed at the PVAO office here by representatives of the US Embassy on a later date this month.
He added that the compensation will be paid out in lump sum as soon as a claimant can present the required information and documentation upon filing their claims.
Each veteran are required to bring: two forms of identification (such as passport, driver’s license, Senior Citizen ID, Postal ID, Voter’s ID, etc.), VA Claim Number, Service Number, Philippine Veterans Affairs Office claim number, Philippine Veterans Affairs Office Pension bank account number, and US Passport (if a US citizen).
Claims from spouses, widows and children of Filipino WWII veterans will not be accepted.
The US estimates about 18,000 Filipino veterans are still alive and eligible.

Tuesday, February 17, 2009

“P168M heavy equipment bidding a failure”

By Kit Bagaipo

Condemning the latest scandal befalling the provincial government’s P168-million bidding of a brand new fleet of heavy equipment, Board Member Cesar Tomas Lopez yesterday said the Bids and Awards Committee (BAC) “failed to comply” with key provisions of the procurement law.
Rising on a privileged speech during yesterday’s session of the Sangguniang Panlalawigan (SP), the lawmaker stressed the provincial government is “again put in a bad light due to the fact that the manner by which goods [are purchased] cannot face up to public scrutiny”.
“Every transaction by the government, may it be P168 or P168-million, must pass public scrutiny and the probing eye of the Boholano,” Lopez said.
Waving a copy of the Chronicle which bannered the alleged bid rigging last Sunday, Lopez said he is “shamed” by insinuations of corruption at the Capitol.
Lopez is the only member of the provincial board who is not a member of the Lakas-CMD-Kampi slate of Gov. Erico Aumentado and Vice Gov. Julius Caesar Herrera.
According to Lopez, the bidding process conducted by the BAC practically indicated in the technical specifications of the equipment to be purchased “the description of preferred brands”.
The board member said he likewise received text messages insulting the Capitol officialdom while others pointed out that the provincial government may save money if the BAC adheres to appropriate bidding procedures.
“I do not question the wisdom of rehabilitating our dilapidating provincial road network [as] I recognize the need to modernize our fleet of equipment,” Lopez said.
He urged his fellow lawmakers to act, whether the accusations against the BAC are unfounded or not, to make sure that its transactions are always “beyond reproach”.
According to Lopez, a personal evaluation of the documents involving the heavy equipment bidding, he came up with the observation that the BAC failed to comply with Section 17.5 of Rule IV of the implementing rules and regulations (IRR) of RA 9184, the Government Procurement Law.
This provision requires the BAC to “give ample time” to prospective bidders to examine bidding documents and to prepare their respective bids.
The law’s provision states that in order to provide ample time, “the BAC shall promptly issue the bidding documents for the contract at the time the Invitation to Apply for Eligibility and to Bid (IAEB) is first advertised”.
Lopez presented documents pertaining to the bidding as he noted some irregular points that were also raised by the complaining supplier Kowa Tsusho Ltd, a Japanese heavy equipment dealer.
Kowa Tsusho has formally filed its protests with the BAC, chaired by General Services Officer Engr. Rosalinda Yu, and asked for a re-bidding even as the the bids committee is still on the post bid conference stage.
The Japanese firm alleged that they were disenfranchised from the multi-million bidding as the procurement process “gave undue advantage to preferred suppliers”.
Kowa Tsusho failed to beat the deadline set by the BAC as they were not given enough time to comply with “voluminous requirements”.
The provincial government will purchase an all brand new fleet of heavy equipment that includes 2 units of backhoe/hydraulic excavators with breakers; 2 units of bulldozers with ripper; 2 units of payloaders; 10 units of 6-wheeler dump trucks; 4 units motor road grader; 4 units of road roller/vibratory compactor; 1 unit 6-wheeler water truck with pump; and a 6-wheeler fuel tanker with pump.
These heavy equipment has an overall approved budget contract (ABC) of P168,296,000, as indicated in the IAEB.
In an interview with the Chronicle yesterday, Kowa Tsusho legal counsel Atty. Salvador Grupo said they will file appropriate charges in court as they have exhausted administrative remedies in trying to settle the issues with the BAC.

BAC TO RE-CONVENE

The BAC is on the post qualification stage after opening the bids last week.
According to Engr. Yu, she will still re-convene the committee this week as previous scheduled meetings did not push through due to conflicting schedules among members.
Yu had categorically denied the accusations of the Japanese heavy equipment supplier that the bidding was rigged and favored particular suppliers.
She also said that the BAC followed the maximum period of 30 days in bidding out the heavy equipment purchase.

Couple nabbed for drugs

A team from the Philippine Drug Enforcement Agency (PDEA) based in the province arrested a couple engaged in selling the illegal substance methamphetamine hydrochloride, locally known as “shabu,” during a raid yesterday in Poblacion Norte, Carmen town.
The raid in the house of Eric Manayagan, 32, and wife Ma. Socorro Manayagan, 26, yielded 29 sachets of suspected shabu granules with an estimated street value of P80,000, PDEA Intelligence Officer 3 Felimon Ruiz said.
The PDEA agents who conducted the raid with police operatives based in Camp Dagohoy this city, obtained a search warrant from Regional Trial Court Executive Judge Fernando Fuentes III.
The couple was long suspected of pushing illegal drugs in the town of Carmen.
The raiding team brought the suspected shabu granules at the PNP crime laboratory for examination as charges for illegal possession of illegal drugs will be filed against the Managayan couple.

1 killed in warehouse robbery

A warehouseman was shot dead when robbers hit a softdrinks warehouse in barangay Cabulihan, Tubigon town Monday morning taking some P400,000 in cash and P70,000 worth of checks.
The unidentified armed assailants barged into the warehouse around 10 a.m. ordering the workers to get down on the floor.
According to warehouse employees, the lone casualty, Ranilo Bongcales, 27, a native of San Miguel town, was shot in the forehead by one of the suspects as he stood up from a stool.
Police said the Coca-Cola warehouse, owned by Atty. Antonino Jumawid, had 23 workers.
A team from the Bohol Police Provincial Office in Camp Dagohoy are in Tubigon to investigate the incident, as the angle of an inside job surfaced.
PSupt. Abner Catalla talked with warehouse employees yesterday and met with the Tubigon PNP.

Monday, February 16, 2009

BSP opens 3rd credit surety fund in Bohol

By Kit Bagaipo


Tagbilaran City , BOHOL - -



Finding the right formula to fuel the growth of micro, small and medium enterprises (MSMEs) where 70-percent of the country’s workforce depend, the Bangko Sentral ng Pilipinas (BSP) launched on Sunday the third and biggest cooperative credit surety fund here.



With an initial membership of 18 cooperatives that pooled its fund resources with a counterpart of P5-million each from the provincial government, the Development Bank of the Philippines (DBP) and the International Loan Guarantee Fund (IGLF), the Bohol Coopreneurs Credit Surety Fund (BC-CSF) seeks to expand and simplify access to credit among member-cooperatives.



BSP Governor Amando Tetangco Jr. and Monetary Board Members Juanita Amatong and Ignacio Bunye signed the memorandum of agreement (MOA) formally creating the BC-CSF with Bohol Governor Erico Aumentado, Vice Governor Julius Caesar Herrera, Development Bank of the Philippines (DBP) president Reynaldo David and cooperative representatives at the Bohol Beach Club in Panglao Island.



A brainchild of the BSP, the credit surety fund or CSF is a program that involves the creation of a trust fund contributed by cooperatives from a province and its provincial government intended primarily to make MSMEs (that are relying on cooperative fund support) bankable by giving them access to formal sources of financing by means of a surety cover.



“In effect, MSMEs who cannot get financing due to the absence of collaterals can now do so using the surety cover as substitute through their respective cooperatives,” Tetangco said in his speech during the MOA signing.



“As most of the country’s workers belong to the MSME sector, we can look forward to a sustained growth in the economy despite the global crisis,” the BSP official stressed.



Bohol Poverty Reduction Management Office head Antonieto Pernia said the BC-CSF membership will reach 30 cooperatives before the end of the first quarter with a P20-million collective fund.



The central bank first introduced the CSF concept in the province of Cavite with the launching of the Cavite Coopreneurs Surety Fund back in August 2008 followed by the Aurora Province Coopreneurs Surety Fund last January.



“The BC-CSF is the first credit surety fund to be organized outside of Luzon and boasts of having the shortest gestation from conceptualization to actual launch,” claims Gov. Aumentado in his speech.



The CSF program received overwhelming reception from cooperatives from both Cavite and Aurora Province as it opened a wider source of financing for their member MSMEs.



DBP president David said the credit surety fund is a welcome development for the banking sector as the program makes it more comfortable for them to lend even in the absence of collaterals.



Even with the government’s requisite that banks and lending institutions allocate 10-percent of its loan portfolio to MSMEs, the sector still finds it difficult to obtain loans due to lack of acceptable collaterals, unstable income or cash flows, lack of business experience or track record and low paying capacity.



“This is the right formula and effective tool for countryside development - by energizing cooperatives to become agents of progress in its own communities by creating more jobs and livelihood,” adds David.



Adelia Ajoc of the Carmen Credit Cooperative Inc. said that through the credit surety fund, their need for additional capital is addressed while it is now much easier for their cooperative to extend loans to members for livelihood without resorting to usurers and loan sharks.



“Our cooperatives are small but we look forward to becoming partners in the development of MSMEs with the guidance of the central bank and the banking sector,” says Dr. Cerina Bolos, chair of the BC-CSF oversight committee.



According to Aumentado, the launching of the BC-CSF is a “defining moment for Bohol which once belonged to the ‘Club 20’ of poorest provinces in the country and a hotbed of the communist insurgency”.



“This will further bolster the province’s growth with our food sufficiency hitting a record of 113-percent,” the governor said.



The central bank hopes to cascade the CSF concept to all key areas of the country.

Saturday, February 14, 2009

Bohol Capitol P168-M equipment bidding rigged?

By Kit Bagaipo
Posted: The Bohol Chronicle

A Japanese heavy equipment dealer complains on the alleged rigged bidding for the purchase of some P168-milllion worth of heavy equipment conducted by the provincial government recently.

International heavy equipment trader Kowa Tsusho Ltd. failed to qualify in the multi-million bidding but said the procurement process “gave undue advantage to preferred suppliers” which threatens to explode into another anomaly bigger than Capitol’s alleged overpriced purchase of a backhoe and air-conditioning units two years ago.

Atty. Salvador Grupo, counsel of the Japanese firm, has formally filed a protest action to the chairman of the Bids and Awards Committee (BAC) of the provincial government, General Services Officer Engr. Rosalinda Yu.

According to Grupo, his client was unable to beat the deadline for the submission of bids as the BAC conducted the bidding process with haste contrary to the Implementing Rules and Regulations (IRR) of RA 9184, the Government Procurement Act.

Under Sec. 17, Rule VI of the law’s IRR, prospective bidders should be given ample time to examine bidding documents and prepare its respective bids.

“To provide ample time, the concerned BAC shall promptly issue the bidding documents for the contract to be bid out at the time the Invitation to Apply for Eligibility and to Bid (IAEB) is first advertised,” Grupo cited.

The provincial government will purchase an all brand new fleet of heavy equipment that includes 2 units of backhoe/hydraulic excavators with breakers; 2 units of bulldozers with ripper; 2 units payloaders; 10 units of 6-wheeler dump trucks; 4 units motor road grader; 4 units road roller/vibratory compactor; 1 unit 6-wheeler water truck with pump; and a 6-wheeler fuel tanker with pump.

These heavy equipment has an overall approved budget contract (ABC) of P168,296,000.

Based on records, Grupo said that the bidding was advertised on January 7, 2009 but bid documents were made available only on January 23 “which is contrary to the provisions of the law.

The dropping of the bids, Grupo added, was done last February 9 which did not gave enough time to Kowa Tsusho to comply with all the “voluminous requirements”.

“As a result, my client has been disenfranchised and suffered because of the failure of the BAC to observe the appropriate bidding procedures,” the lawyer said.

In a letter to Yu last February 4, the supplier requested for the dropping, screening and opening of bids to be deferred.

In its letter to Yu, the Japanese supplier noted “defects in the manner” the bidding has been conducted by the BAC.

Aside from the unavailability of bid documents, the amount to be paid for the said requirement was not stated for the reason that the technical working group of the bids committee “still needed to come up with the final and definite specifications”.

As shown in the minutes of the pre-bidding conference, “the BAC secretariat could not furnish the interested bidders at that time any of the required documents,” Grupo disclosed.

He said there were “serious concerns and questions raised by participating suppliers and interested bidders” that were not completely resolved by the BAC and that it “needed further time to deliberate and settle” the issues.

PREFERRED BIDDER?

During the said pre-bid conference, Grupo bared that the BAC “openly admitted they already had preferred brands” which is improper under the procurement law.

“Due to the unresolved issued that surfaced during the conference, the time frame for the submission of the required documents by the interested bidders, were now very much shortened, and there was hardly enough time for the interested bidders to comply,” he explained.

Grupo denounced how the BAC proceeded with the opening of bids despite the protests of his client.

He added the guideline on publicizing the IAEB was not followed as the BAC only advertised the items for bidding in two local newspapers. The procurement law requires the invitation for bids to a local and a national newspaper of general circulation.

“Dates of publication and the newspapers were carefully chosen and the specifications for the equipment were tailor-suited to favor a particular brand or model,” Grupo added further.

“This situation creates the impression that there are favored parties who have given advantages in this bidding,” the lawyer stressed.

SUPPLIERS

As of February 4, six suppliers were already listed by the BAC to participate in the bidding. These were Camec JCB Corporation, JVF Commercial, Civic Merchandising, RDAK Transport Equipment, Pasahero Motors Corporation and Isuzu Cebu, Inc.

Of the six bid participants, only RDAK could supply all the 8 items stated in the contract.

Moreover, Kowa Tsusho also questioned the BAC for allowing the other seven contractors to supply only some of the items to be bidded out instead of the 8 items specified in the IAEB. This was confirmed in the amounts paid by said suppliers which were based on a per item basis.

A provincial ordinance sets the amount to be paid for the purchase of bid documents on contracts over P10-million at P10,000. However, each of the eight suppliers paid separately for each of the items offered for bidding.

Grupo likewise revealed that the maximum period to be given to prospective bidders from the time of publication of the invitation for bids should have been 50 calendar days instead of just 30 days.

“Infrastructure projects involving P50 million and above should allow suppliers and contractors at least 50 days from the last publication of the invitation to submit their bid requisites,” he said.

According to Grupo, the dropping of bids last February 9 was illegal since it did not comply with the prescribed period in the procurement law.

BAC EXPLAINS

In her reply, Engr. Yu said the accusations of the Japanese heavy equipment supplier that the bidding was “rigged and craftily manipulated” is “totally unfounded, baseless and unfair”.

Yu clarified that the invitation for bids was published not only in the Bohol Chronicleon January 15, 2009 but also in the Sun Star Daily on January 8, 2009 and in the Cebu Daily News on January 15.

Moreover, the IAEB was also posted in the website of the provincial government and in three conspicuous places in the province, according to Yu.

The BAC chair also disproved the claim of the supplier that the maximum period to be allowed should be 50 days saying that the said provision in the procurement law applies only to infrastructure projects and not to the procurement of goods.

“Quite obviously, the procurement of various heavy equipment falls under the category of goods and not infrastructure project,” she added.

Yu justified that “the inability of Kowa Tsusho to submit its bid documents on time” cannot be given consideration as it would “unduly put the bidding process in bad light”.

“We cannot give special treatment to [Kowa Tsusho] because this would be unfair to the other bidders who dutifully labored to submit their bid documents on time,” Yu concluded.

FLAWED FROM THE START

However, Grupo, who said he personally attended the pre-bid conference, stressed the multi-million peso purchase by the provincial government, the biggest single purchase by far, has led some sectors to question its timing.

“This is not an issue of an interested bidder asking for a special consideration and not being granted such accommodation,” according to Grupo stressing that provisions of the procurement law and its IRR are violated.

“The BAC despite our vehement protests continued its conclusion to the bidding process by conducting a post-qualification on the submitted bids,” he said.

According to Grupo, this serves to bolster suspicions that “the transaction from the very beginning stinks”.

“The purchase from the start of the advertisement to the schedule of activities was done in haste,” he stressed.

It can be recalled that two years ago, a similar purchase of heavy equipment (backhoe) also generated controversy which ended in the supplier offering a donation to the province “as a gesture of goodwill” for bagging the contract.

PRBank clients process claims

By Kit Bagaipo
Posted: The Bohol Chronicle

Depositors of the closed Pilipino Rural Bank (PRBank) Tagbilaran City branch with deposit account balance of P100,000 and below are the first ones to get paid.

Representatives from the Philippine Deposit Insurance Corporation (PDIC) began processing claims of the rural bank’s clients of with 40 regular savings depositors serviced daily starting last Wednesday.

The initial claims servicing operations of PDIC here will run until March 6 which targets up to 600 depositors out of the 14,670 clients of the bank in the province.

PRBank declared a bank holiday last December 12, 2008 after the collapse of its affiliate banks under the Legacy Group.

PDIC said they initially distributed numbered claim forms last Wednesday at the closed bank’s branch office at the Asian Lending Building along CPG North Avenue, this city.

The actual claims servicing will be done in the order based on the numbers printed in the claim forms to ensure an orderly payout processing.

In order to get a claim form, depositors must present their original regular savings passbook to the PDIC representatives at the rural bank’s premises. This will be done on a first come, first served basis.

After filling out the claim form, the bank client will verify the corresponding “appointment date” as indicated by the number in the form that is when the depositor will go back to the bank and submit the claim form.

The PDIC is prioritizing claims of depositors with regular savings accounts of P100,000 and below in keeping with its mandate to protect small, unsophisticated depositors.

According to PDIC representatives, the second batch of claims processing will start next month for regular savings accounts with balances of P100,000 and above, special savings accounts and current accounts.

Loon Ex-mayor cleared of graft charges

By Kit Bagaipo
Posted:The Bohol Chronicle

The Sandiganbayan, through its 5th Division, recently cleared former Loon mayor Wilfredo Caresosa and five co-accused of charges for alleged violation of the Anti-Graft and Corrupt Practices Act.

In a decision penned on July 18, 2008 and promulgated on January 30, 2009, the graft court found that “the prosecution failed to discharge its burden of proof, hence, the acquittal of the accused is inevitable”.

Earlier, a corollary case arising from the same incident and prosecuted at the instance of the same complaint against Caresosa, also found the accused not guilty. The verdict was handed down by the 3rd Division of the Sandiganbayan.

A seventh accused, Rosalio Sierras, had his case dismissed after he died while the case was on trial.

The defense of the case was handled by lawyers Artemio Cabatos and Amado Caballero.

The prosecution stemmed from the purchase of PVC pipes on credit from E. Butalid Store sometime in 1998. The purchase, being undertaken on “emergency” was made without benefit of public bidding.

The evidence showed that the improvement project for the Loon Waterworks System, using the questioned PVC pipes, was actually completed. The project raised the annual income of the municipal waterworks system from P1.6 million to P3 million and later propelled to P5 million as more consumers were served.

The prosecution claimed overprice in the purchase of the PVC pipes, as well as irregularity by the absence of public bidding, both constituting violations of RA 3019, the Anti Graft and Corrupt Practices Act.

But the court ruled otherwise. There was no convincing evidence of overprice, as the Commission on Audit (COA), through Atty. Charlita Leopoldo, compared the quotation of E. Butalid Store in 1998 with those of Cebu suppliers in 1999.

The absence of public bidding was justified by the presence of the “El Nino” phenomenon during the time when the project was undertaken.

Further, the court found no injury to the government or any private party, noting the increase in revenues from the waterworks system after its completion.

The Sandiganbayan said, “Atty. Leopoldo’s conclusion that the goods delivered by E. Butalid Store were overpriced is rather inaccurate… the prosecution’s claim that the cost paid by the Municipality of Loon to E. Butalid Store for the said goods was overpriced is totally baseless.”

The two cases were leveled against Caresosa and company after he lost the mayoralty seat of Loon in 1998 to Cesar Tomas Lopez. The latter is now member of the Bohol Provincial Board.

Wednesday, February 4, 2009

PDIC to start payout of deposit claims next week

Tagbilaran City, BOHOL - -

The Philippine Deposit Insurance Corporation (PDIC) will start paying out claims on insured deposits of closed rural banks on February 13.

PDIC vice president for Comptrollership Geronimo Ambe made this assurance this morning during a meeting with over 1,000 depositors of Pilipino Rural Bank (PRBank) Tagbilaran Branch here at the Bohol Cultural Center, this city.

According to Ambe the first batch of payout will run until March 6 starting with insured deposits below P250,000.

Based on PDIC records, there are 14,762 depositors of PRBank Tagbilaran, according to Ambe. The list of depositors includes prominent businessmen, retirees, overseas workers, politicians and even two alleged “swertres” financiers.

The deposit insurer will also distribute claim forms next week here in Tagbilaran for other claimants, Ambe said.

PRBank Tagbilaran, an affiliate of the bankrupt Legacy Group, declared a bank holiday last December 12, 2008.

The meeting with Ambe and Boholano depositors came after Gov. Erico Aumentado requested PDIC to resolve complaints of local depositors who were annoyed by the delay in processing of their claims.

Ambe appealed to depositors to be patient as there are 28 other rural banks that the PDIC had to attend to.

Claims will be processed on a first come, first served basis after the PDIC have completed paying out claims below P250,000, Ambe added.

Last week another rural bank here in Bohol also declared a holiday after depositors started withdrawing their deposits following apprehensions on the closure of PRBank.

The Rural Bank of Maribojoc, Inc. (RBM) had been operating smoothly for the past 31 years until its depositors lost confidence on its stability, according to the rural bank’s chairman Restituto Tan.

RBM has already applied for a P20-million emergency loan from the Bangko Sentral ng Pilipinas (BSP) to revitalize its operations.

Last Monday officials of the BSP scrutinized bank records and transactions to assess if a loan can be granted, according to Tan.
Until now, the Monetary Board has not placed RBM under receivership.