PCG on SUV: Deal with oil company called for non-monetary rebates

The Philippine Coast Guard on Tuesday explained its purchase in 2022 of a luxury SUV worth P5 million after it was flagged by the Commission on Audit.

Bullet proofing for the SUV was said to be worth P2.8 million.

According to a report on "24 Oras," the PCG said it used rebates from an oil company to but the SUV.

The PCG said the rebates came from operations which did not push through as the year ended.

It said the contract with the oil company provided for non-monetary rebates for mobility or infrastructure instead of cash.

The security and protection team reportedly suggested the purchase of a bulletproof SUV and 31 service vehicles to be distributed across the country.

"We are submitting to the jurisdiction of COA," PCG spokesman Rear Admiral Armand Balilo said.

He said the PCG had started to investigate the matter to find out if there are loopholes to correct and avoid any perception that funds are being abused.

Administrative Order No. 14

The Commission on Audit has flagged the PCG's purchase of a Land Cruiser Prado worth P5 million in 2022 and cited Administrative Order No. 14 which prohibited  government agencies from acquiring and/or using luxury vehicles.

The COA said the necessity of acquiring new vehicles to use the rebates from the oil company "could not be adequately established."

The PCG responded that the acquisition of motor vehicles through fuel, oil, and lubricants (FOL) rebates from the fuel firm was driven by several key factors which affect the PCG's operational effectiveness.

These include:

• the current number of issued land and floating assets (e.g. motor vehicles and aluminum/rubber boats) does not suffice the demand in PCG services; and
• the number of activated units and districts and workforce within the PCG, which continues to increase.

“The acquisition of vehicles through rebates is an opportunity for the PCG to capacitate the Command to become more responsive to the challenges prompting the organization,” the PCG said.

The PCG, in response to state auditors, said that the acquisition of the Toyota Land Cruiser Prado was necessary for the PCG to ensure safe and secure transportation of the Commandant and to uphold the PCG’s mandated functions.

Rebates questioned

Sen. Sherwin Gatchalian earlier on Tuesday questioned the rebates which the Philippine Coast Guard received from a petroleum company and which were used to buy a premium SUV.

Gatchalian, the chairman of the Senate Committee on Ways and Means, said it was improper for an agency to use rebates from an oil company to buy a P5-million Land Cruiser Prado in 2022.

“Worse, paano ka nagkaroon ng rebate..? Kasi isa sa trabaho ng Coast Guard ay bantayan ang mga oil vessel kapag pumasok dito," Gatchalian said.

(Worse, how come you had a rebate? One of the coast guard's jobs is to watch the oil vessels coming in.)

Aside from the Bureau of Customs, Gatchalian said the PCG was among the agencies which should ensure that there would be no under-declaration of the shipments of fuel coming in.

“Sa akin, hindi tama na tumatanggap sila ng rebates, whether personal or official hindi tama yun. Dapat wala silang tanggaping rebates. Even worse na tinanggap mo at ginastos mo para sa luxury vehicles," Gatchalian said.

(For me, it's improper for them to accept rebates. Whether personal of official, it's not right. They should not accept rebates. Even worse is when you accepted it and spent it on luxury vehicles.) —NB, GMA Integrated News