Just as the nation’s military is racing against
time to build up its air defence capabilities amid tensions in the South China
Sea, the Commission on Audit (COA) has ordered the suspension of three aircraft
acquisition deals forged by the Defence department after state auditors
red-flagged them for irregularities.
Documents
obtained by Manila Times said the contracts, with a combined value of nearly
P25bn, included the P1.2bn helicopter contract, which this paper had exposed
and is the subject of ongoing Senate blue ribbon investigation.
Also
cited in COA’s notice to the Department of National Defence (DND) and
Philippine Air Force officials were the transactions involving the acquisition
of 12 fighter jets from South Korea, valued at P18.9bn, and of eight Bell 412EP
combat utility helicopters, valued at P4.8bn.
The
Manila Times early this year came out with a series detailing the alleged
anomalies in the P1.2bn helicopter deal based on documents provided by and
interviews with whistleblower Rhodora Alvarez, whose identity was initially
masked with the codename Joey.
The jet
fighter deal involves the acquisition of FA-50 fighter/trainer jets from Korean
Aerospace Inc. The deal was done through government-to-government negotiation
with the contract signed during President Benigno Aquino’s visit to Seoul in
March 2013.
The revelation
of the COA “grounding” notice came a few days after the DND announced the
successful maiden test flight of the jets in South Korea last week.
The
Korean contractor committed to deliver two of the 12 fighter jets by the last
quarter of the year or early next year.
The test
flight of the newly manufactured FA-50 jet was conducted on June 19.
A team of
PAF pilots and ground crew are also in training in South Korea on how to handle
the jet fighter, which is patterned after the US-made F-16 Fighting Falcon.
Two of
the eight brand-new Bell 412EP helicopters have reportedly arrived early this
month and are assembled and tested in a secured Air Fforce facility.
A total
of six helicopters from Bell Helicopter Canada are expected to be delivered
until August this year.
Like the
jet fighter contract, the Bell 412EP acquisition involved a
government-to-government transaction with Canada through the Canadian
Commercial Corp. The contract was signed in March 2014.
A media
report quoting Defence Undersecretary Fernando Manalo said three of the eight
helicopters will be configured as VIP helicopters for use during the coming
Asia-Pacific Economic Conference summit in September. The VIP-configured
helicopters would be assigned to the PAF Presidential Airlift Wing.
Alvarez
said the alleged anomalies that were flagged by COA auditors validate her claim
that there was a pattern of irregularity in the modernisation programme of the
Armed Forces of the Philippines.
“This is
the pattern of irregularity that I was talking about. The P1.2bn deal with Rice
Aircraft Services Inc is just a tip of the iceberg, a speck of dust in a
multitude of wrongdoings in the (Defence) department. This has to stop for the
sake of our lowly soldiers who sacrifice limbs and lives for the country,”
Alvarez said in an interview.
“I thank
the COA for its diligence and sense of justice. I know this is not the end of
the road because the Notice of Suspension and the issuance of an AOM (Audit
Observation Memorandum) is just the beginning of a lengthy process. But I’m
glad it has begun,” she noted.
A DND
insider said the notice issued by the COA tells the PAF technical working group
that a meeting has been called by the DND to deal with the COA suspension.
The
notice, which was reportedly green-lighted by Defence Secretary Voltaire
Gazmin, tasked DND Assistant Secretary Patrick Velez to preside over the
meeting.
The
notice indicated that the sole agenda for the conference was “Compliance to the
AOM/ Notice of suspension issued by COA on the above-mentioned AFP
modernisation programme projects.”
Velez as
well as Undersecretary Manalo, a former Air Force general, were among the DND
officials whom whistleblower Alvarez had accused of “tailor-fitting” the UH-1D
project specifications for Rice Aircraft Services Inc.
Joel M Sy
Egco
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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