THE officer-in-charge of the Department of Defense (DND), Jose Faustino Jr, is reviewing contracts recently entered into by the past administration, including the acquisition of heavy-lift helicopters from Russia.
In a phone interview, DND spokesman Arsenio Andolong yesterday said the review of the P12.7 Mi-17 helicopter deal and other deals is merely “customary” and not borne out of any suspicion of corruption.
“The Mi-17 along with other procurement projects inherited by the Marcos administration will be subject to review. It’s on status quo. There’s no termination yet, it’s still subject to review,” Andolong said.
The DND entered into a government-to-government contract with Russia in November last year for the supply of 17 units of Mi-17 helicopters for P12.7 billion. The helicopters are supposed to be delivered by LLC Sovtechnoexport of Russian Federation 24 months after the contract signing. The DND gave a down payment last January, about six months before Ferdinand Marcos Jr. assumed the president
Last March, then Defense Secretary Delfin Lorenzana said it was unlikely for the DND to cancel the contract. He made the remarks a month after the Philippine government expressed its “explicit condemnation” of Russia’s invasion of Ukraine.
Andolong said one of the contracts also being reviewed is the acquisition of six off-shore patrol vessels from Hyundai Heavy Industries of South Korea. Lorenzana signed the P30-billion deal last month.
“That’s customary. Whenever there is a new (defense chief), the ongoing projects are submitted to him for his review. That’s SOP (standard operating procedure) here at the DND,” said Andolong.
Andolong said Faustino has to be aware of the projects he inherited because these have “budgetary considerations,” referring to the payment of equipment being acquired by the defense and military establishments.
“He has to know (the details) so he will have options. Will he continue it or not, or he needs clarifications from the Defense Procurement Service regarding these projects,” said Andolong.
Asked if there is any suspicion of corruption, Andolong said. “No. That is SOP (standard operating procedure).”
Andolong said the defense chief, as head of the procuring entity which is the DND, has the option to terminate any contract.
“That is his prerogative as head of the procuring entity. There is a provision in the law that says he can cancel (any contract) for economic considerations; there is no money, we can’t afford it. Second, for convenience. That’s another way of saying for any reason aside from economics,” said Andolong.
