Gazmin faces plunder complaint over P1.2-B chopper deal

An employee of the Bureau of Internal Revenue on Wednesday filed a plunder complaint against Defense Secretary Voltaire Gazmin over a P1.2 billion helicopter deal in 2013.

BIR employee Rhodora Alvarez, who blew the whistle on the alleged anomalous deal, included several officials of the Department of National Defense (DND) and the Armed Forces of the Philippines as respondents in the complaint she filed with the Office of the Ombudsman.

Aside from plunder, Alvarez, in her complaint, also accused Gazmin and the other respondents with graft, malversation of public funds, violations of Republic Act 9184 or the Government Procurement Reform Act and R.A. 7898 or the AFP Modernization Act.

The respondents were also accused of committing an administrative offense of gross dishonesty.

Also named respondents in the complaint were: Defense Undersecretary and DND-Bids and Awards Committee chairman Fernando Manalo, Defense assistant secretary and BAC vice chairman Patric Velez, BAC director Nebuchadnezzar Alejandrino and BAC members Lt. General Gregorio Macapagal, Col. Joselito Reyes and lawyer Angelito Castillo.

Also included in the complaint were: DND Technical Working Group (TWG) chairman Brig. Gen. Conrado Parra and TWG members Col. Moises Micor, Maj. Rene Rodolfo, Maj. Oliver Casuncad, Maj. Florante Baterina, Maj. Kathreen Gunayon and Maj. Abraham Gemora.

Other respondents in the complaint were Contract Termination Review Committee members DND assistant secretary Ernesto Boac, lawyer Cherrie Belmonte-Lim and Post Qualification Team members Maj. Oliver Casuncad, Dino Diño and several other officials of the Philippine Air Force (PAF).

Robert Rice and Matthew Rice of the Rice Aircraft Services Inc. (RASI) and Michael O’Reilly, president of Eagle Copters, Ltd. were also included as respondents.

RASI and Eagle Copters Ltd. are the joint venture partners that tendered the bid for the helicopter procurement project.

Alvarez said Gazmin, “in conspiracy” with the other DNP and AFP officials in 2013 awarded the P1.21-billion contract to the joint venture of RASI and Eagle Copters without holding the required public bidding.

The contract was for the supposed purchase of 21 UH-1D or Huey helicopters, including spare parts as part of the AFP modernization program.

Under the contract, the joint venture must deliver to the AFP within 180 days or until Sept. 21, 2014.

Alvarez said the awarding of the contract “was tainted with irregularities from the very beginning” as it was entered through negotiated procurement instead of public bidding despite having no state of emergency at that time.

Alvarez further claimed that RASI is not an accredited aircraft supplier.

“It should not be amiss to state that there is no basis for DND-BAC to enter into a Negotiated Procurement. Moreover, there is no basis for DND-BAC to enter into a contract to RASI who is a mere helicopter broker and not a supplier,” the complaint read.

During hearings by the Senate Blue Ribbon Committee last year, Alvarez claimed that Gazmin was supposed to receive a seven-percent commission from the deal.

She also said that the other officials involved in the deal were also supposed to receive a five-percent kickback.

“Interest for personal gain shall be presumed against those public officers responsible for the approval of manifestly unlawful, inequitable or irregular transaction or acts by the board, panel or group to which they belong,” Alvarez said in her complaint.

Alvarez also said that until now, only 10 helicopters were delivered by the joint venture and most of them have defective engines and insufficient spare parts and accessories, citing that one of them have even crashed in November last year.

“It has been my constant position that these UH-1D Helicopters were defective as the same were not compliant with project’s specifications provided by the government to warrant its safety during combat operation,” the complaint read.

“Sadly, respondent [Gazmin] and his cohorts rigged the procurement process despite knowing fully well of its defectiveness to the prejudice of the government,” it added. — APG, GMA News