Thursday, May 22, 2025

P6.5B PNP procurement mess: Equipment paid but undelivered

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The Philippine National Police’s effort to upgrade the equipment of its uniformed personnel has bogged down with massive delays in the delivery of P6.507 billion worth of weapons, combat gear, vehicles and other supplies that were already paid or funded.

According to the 2019 PNP audit released last August 28, the biggest chunk of undelivered procurement consists of P3.91 billion “equipment and common-use supplies” with the Procurement Service — Department of Budget and Management (PS-DBM).

Government auditors said these purchases have now been delayed by one to 10 years.

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Another batch of P1.037 billion worth of “mobility, firearms, and other equipment” remains pending with the Philippine International trading Corporation (PITC). Delivery deadline had already expired three years earlier.

Fund transfers to the PITC totaling P1.348 billion were made from March to April 2016 for new armored vehicles, firearms and tactical equipment but as of year-end 2019, only P311.068 million worth of equipment have been delivered.

Finally, the audit team tagged 24 supply contracts under the Capability Enhancement Program (CEP) of the PNP-Special Action Force (SAF) worth a combined P1.508 billion that had incurred delays “ranging from 117 to 797 days.”

Ironically, the PNP had tapped the PS-DBM and the PITC to supposedly facilitate the procurement process and ensure that police officers will be adequately equipped in their fight against organized crimes.

“The low delivery rate hinders the attainment of the purpose of the capability upgrade and the immediate use of the equipment,” the Commission on Audit said.

Based on the list of SAF contracts provided in the audit report, the biggest was the P558.844 million for the purchase of multi-purpose armored vehicles, caliber 50 heavy machine guns, remote weapon station for V150 commando vehicle and automatic grenade launcher from the Joint Venture of Stone of David and GAIA Automotive Industries Limited.

Delivery date set was Aug, 14, 2019 but was not met.

There was also an order for 288 sniper rifles with scope and clip-on thermal scope worth P283.68 million awarded to LSV Global Ventures that was supposed to be delivered on April 25, 2019 but did not materialize.

LSV Global Ventures was also cited in six other delayed supply and equipment delivery contracts, including P119.87 million worth of medium troop carriers, P49.974 million worth of 60mm ultra light commando mortar, P32.65 million worth of rocket launchers, P23 million worth of Aerodyne T10 parachutes, P20.513 million worth of night vision rifle scopes, and P8.225 million worth of Nightforce Xtreme hi-definition sporting scope.

All these were supposed to be delivered not later than the third quarter of 2019 but the supplier defaulted.

“All 24 procurement contracts for the delivery of equipment under the CEP totaling P1,507,732,147.75 were not yet delivered as of December 31, 2019; thus, incurring delays ranging from 117 to 797 days,” the audit team noted.

The PNP Accounting Division under the Directorate for Comptrollership and Directorate for Logistics said the PITC delivered P316.27 million worth of equipment as of the last quarter of 2019, including 149 light machine guns and 1,677 assault rifles but were still awaiting the issuance of certificates of acceptance.

On the part of the PS-DBM, deliveries worth P256.29 million were made as of May 29, 2020, while basic assault rifles worth P1.578 billion are also awaiting completion of documentary requirements.

The PNP leadership said it has notified the PS-DBM to refund the balance of unused advances to the Bureau of Treasury if it cannot meet the deadlines of deliveries.

On the hand, the PNP-SAF it has already terminated two contracts in 2019 due to unmet delivery schedules while three others are undergoing similar procedures.

It added that two other suppliers — Caballo Negro Industriya Corp. and Lotus International Co. Ltd — have been blacklisted for repeated delinquencies.

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