House to investigate P80M overprice in oil spill equipment plus possible ghost purchases of lighthouse spare parts

News Release

February 7, 2012

Reference: BAYAN MUNA Rep. Teddy Casiño (09209035683)

House to investigate P80M overprice in oil spill equipment plus possible ghost purchases of lighthouse spare parts

The House Committee on Good Government and Public Accountability has officially taken on the investigation on more than a billion pesos worth of lighthouse spare parts and oil spill equipment acquired by the previous administration and said to be excessive, overpriced and illegal.

In its hearing this morning, the Committee agreed to acquire jurisdiction over House Resolution 1640 authored by Bayan Muna Rep. Teddy Casiño. The lawmaker said the DOTC's purchase of P719,562,860 worth of lighthouse spare parts and P319,000,000 worth of oil spill equipment in 2009 was "excessive, irregular and illegal" and should be investigated by Congress for possible malfeasance and misfeasance.

He revealed that P319M worth of Marine Environmental Protection Equipment (MEPE) alone appeared to be overpriced by P77,319,500.00 as observed by the COA in its March 22, 2011 Audit Observation Memorandum. "From a unit price of P48,386,100 per lot as provided by the Coast Guard, the approved budget for the contract ballooned to P63,850,000 per lot. The DOTC eventually purchased only five instead of eight sets of MEPE.

He said the Committee will also be looking into the prices of the other items that may have been overpriced by 40-50%.

Yesterday, in a vist to the DOTC stockroom in Ortigas Ave., Casiño confirmed that P260M worth of lighthouse spare parts remained unopened and unused for the last two years, proof, he said, that the Department had purchased too much for the needs of the Coast Guard. 

"It seems that the DOTC bought so much equipment for the Coast Guard to handle. Sobra-sobra na, napakamahal pa," he stressed.

The Committee will be inviting to its next hearing former DOTC Sec. Leandro Mendoza and Asec. Dante Lantin, incumbent Sec. Mar Roxas, Usec. for Operations Rafael Santos, Usec. for Finance Aristotle Batuhan, Asec. Domingo Reyes, Jr., chief accountant Edna Tapar, Director Venancio Santidad, Director Rebecca Cacatian, Director Lydia Malvar, Former Philippine Coast Guard Commandant Wilfredo Tamayo, current PCG Commandant Admiral Ramon Liwag as well as the owner of Berlyn-Cresencio Devilles-Arcena and RH Lopez-Ms.Ramona Henarez Lopez, Casiño said.# # #