‘It seems that the COA
and the Senate have only uncovered the tip of the iceberg when it comes to these procurement contracts, and already we see the earmarks of irregularity.’
IN the first part of Dante Alighieri’s epic poem the Divine Comedy, he speaks about the nine circles of hell, where those who have shunned spiritual values are doomed to inhabit once their mortal lives are over. The first circle is described as limbo, the second circle as lust, the third circle for gluttons, the fourth circle for greed. The fifth circle is for the wrathful, the sixth for the heretics; the violent kind are meant to end up in the seventh, while those who defraud others go straight to the eighth. The ninth and last circle is reserved for those who commit treachery against those close to them. One wonders, in the light of recent events, if those who dip their hands in public coffers at the time of the pandemic will end up in the fourth or eight circle of hell.
The numbers are staggering; media reports that no less than P8 billion worth of contracts are the subject of the ongoing Senate Blue Ribbon investigation on the funds involving the Department of Health, contracts that were allegedly cornered by one corporation. Funds badly needed for sending help to our health workers, buying the necessary equipment for public hospitals, among others, went into buying overpriced face masks and face shields. It seems that the COA and the Senate have only uncovered the tip of the iceberg when it comes to these procurement contracts, and already we see the earmarks of irregularity.
To begin: a company with barely a million pesos in authorized capital stock was able to secure contracts in the hundreds of millions. Knowing that payment for supplies in government comes long after a contract is fulfilled, where did this company get the funds to buy these items, knowing that the company’s assets are limited? Either they were able to secure a loan from a bank (which is highly unlikely, as the company was newly registered and again had very little assets to its name) or the corporation was meant to just be a paper vehicle.
Speaking of bank loans, a compliance officer with a blindfold on would easily have spotted the deficiencies in the vetting of the PS-DBM under Lloyd Christopher Lao. If I recall correctly, even applying for a PhilGEPS (Philippine Government Electronic Procurement System) accreditation (which is a prerequisite for participating in bidding for government contracts) requires the submission of corporate identity documents such as the certificate of incorporation, articles of incorporation, and general information sheet, all issued by the Securities and Exchange Commission. These are not meant to be mere paper requirements — the folks at PS-DBM are supposed to evaluate all of them along with the other documentary requirements. Another requisite is having participated in other similar projects from other government agencies or offices — this means that the track record of the bidder is quite important.
Alas, all of these (and more) were clearly disregarded by Lao in assessing the fitness of this company to win these contracts, as evidenced by his admissions during the Senate hearing last week. A simple Google search on the names of one of the company’s incorporators plus the name of the corporation instantly yields a news report about a probe conducted by the Taiwanese authorities. Instead, the contract to the company was signed and stamped without batting an eyelash, it seemed.
I expect more revelations in the coming hearings, knowing that Senate Minority Leader Frank Drilon has latched on to the scent of irregularity. As others would tell you, it’s hard to shake off Sen. Drilon when he has taken his shovel to start digging. It seems that Senators Ping Lacson and Richard Gordon are also on the hunt, never mind that some folks attribute this to politicking. Sen. Risa Hontiveros deserves a pat on the back for being on the case since 2020, when she first questioned these contracts.
Hopefully in due time (read: as soon as possible) we see the breadth and width of the stink surrounding these contracts. The Filipino people deserve no less. And by the time this is over, perhaps a tenth circle of Hell will open for these opportunists and thieves who dare take advantage of their positions to enrich themselves at the expense of Filipinos who are suffering enough.
