House recommends raps vs Imee, Ilocos Norte execs for tobacco fund misuse
By Roel Tibay
Published Jul 5, 2018 06:35 pm
By Ben Rosario
After months of investigation, the House of Representatives has recommended the filing of graft charges against Ilocos Norte Governor Imee Marcos and several other provincial officials for irregularities in the disbursement of the province’s share from tobacco tax collections.
MB File- Ilocos Norte Governor Imee Marcos (Manila Bulletin)
The Marcos camp has said that the result of the congressional inquiry has long been expected, blaming local politics for the controversy.
The congressional investigation into the alleged anomalies in the disbursement of tobacco excise tax share of Ilocos Norte based on House Resolution 882 authored by Majority Leader and Ilocos Norte Rep. Rodolfo Farinas and Pampanga Reps. Rimpy Bondoc and Aurelio Gonzales.
In a Committee Report No. 638 .the House Committee on Good Government and Public Accountability found sufficient evidence to pin down Marcos and several other provincial officials for the “highly irregular and illegal” procurement of 110 Foton minicabs, using a portion of Ilocos Norte’s share of the tobacco excise tax.
Chaired by Surigao del Sur Rep. Johnny Ty-Pimentel, the House panel found the purchase to be overpriced by P21.45 million.
Committee Report No. 638 revealed that Fabian Go, president of Granstar Motors and Industrial Corp. sold the minicabs to a certain Mark Chua for P270,000 each.
IN turn, Chua, who was described as a longtime partner of Marcos, passed on the vehicles to the provincial government, this time at a cost of P465,000 per unit or an overprice of P195,000 each.
The committee noted that purchase of vehicles using the tobacco fund is not allowed by Republic Act No. 7171 which authorizes the collection of additionial taxes from tobacco products to be used in helping farmers become self-reliant through cooperative, livelihood, agroindustrial and infrastructure projects.
Congressmen said provincial executives were also guilty of violating the provisions of the Government Procurement Act in connection with the requirement of public bidding in government purchases.
No bidding was conducted on the purchase of the vehicles.
Further, the committee report noted that there was no specific appropriation ordinance by the Sangguniang Panlalawigan for the purchase of the vehicles, and lump sum funds were illegally used, according to the report.
Commission on Audit rules also bans the use of cash advances for huge procurements such as the purchase of the vehicles.
.
The House plenary voted to uphold the recommendation of the good government panel last March but the report was released to reporters only yesterday.
Copies of CR 638 were distributed to the Office of the Ombudsman, the Commission on Audit, the Department of Justice, the Department of Budget and Management, Office of the Solicitor General, the Bureau of Immigration, the Land Transportation Office and the National Tobacco Administration.
Aside from recommending criminal and administrative charges, the House also approved the recommendation that legislation is drafted to “prevent abuse in the utilization of tobacco funds.”
Earlier, the COA disclosed that it has uncovered several irregularities in the procurement of at least P100 million worth of goods and services made in the past two years by the Ilocos Norte government, whose questionable procurement practices are under scrutiny in the House of Representatives.
IN its 2017 annual audit report for the provincial government, the COA disclosed that there has been a “clear manifestation of the fabrication” of supporting papers for the disbursement and payment of suppliers and contractors.
This was uncovered after state auditors scrutinized the Invitation to Bid (ITB)reference numbers stated in the Philippine Government Electronic Procurement System which is the primary source of information on government procurement.
In 2016, transactions for medical purchases amounting to some P21.7 million from CN Medical Distribution were allegedly supported by fabricated copies of ITB.
Larger procurements backed by bogus copies of ITB purchases from Dashma Computer System and Services, P123,718.00; Shawin Konstruct Const and Construction Supply, P51,950.00; BF Merren Pharmaceuticals, P1.5 million; St. Ruiz Agro Farm Supply, P356,256.00.
Irregularities in the purchase of vehicles totalling at least P66 million in the province’s tobacco excise tax share and made under the administration of incumbent Governor Imee Marcos have been investigated by the House Committee on Good Government and Public Accountability.
The House panel chaired by Surigao del Norte Rep. Johnny Ty-Pimentel has recommended the filing of adminsitrative and criminal charges against involved officials,
IN the audit report, the CoA also recommended the filing of “appropriate legal charges” against persons involved in the invitation of a representative from a non-government organization to act as an observer in the conduct of bidding process.
MB File- Ilocos Norte Governor Imee Marcos (Manila Bulletin)
The Marcos camp has said that the result of the congressional inquiry has long been expected, blaming local politics for the controversy.
The congressional investigation into the alleged anomalies in the disbursement of tobacco excise tax share of Ilocos Norte based on House Resolution 882 authored by Majority Leader and Ilocos Norte Rep. Rodolfo Farinas and Pampanga Reps. Rimpy Bondoc and Aurelio Gonzales.
In a Committee Report No. 638 .the House Committee on Good Government and Public Accountability found sufficient evidence to pin down Marcos and several other provincial officials for the “highly irregular and illegal” procurement of 110 Foton minicabs, using a portion of Ilocos Norte’s share of the tobacco excise tax.
Chaired by Surigao del Sur Rep. Johnny Ty-Pimentel, the House panel found the purchase to be overpriced by P21.45 million.
Committee Report No. 638 revealed that Fabian Go, president of Granstar Motors and Industrial Corp. sold the minicabs to a certain Mark Chua for P270,000 each.
IN turn, Chua, who was described as a longtime partner of Marcos, passed on the vehicles to the provincial government, this time at a cost of P465,000 per unit or an overprice of P195,000 each.
The committee noted that purchase of vehicles using the tobacco fund is not allowed by Republic Act No. 7171 which authorizes the collection of additionial taxes from tobacco products to be used in helping farmers become self-reliant through cooperative, livelihood, agroindustrial and infrastructure projects.
Congressmen said provincial executives were also guilty of violating the provisions of the Government Procurement Act in connection with the requirement of public bidding in government purchases.
No bidding was conducted on the purchase of the vehicles.
Further, the committee report noted that there was no specific appropriation ordinance by the Sangguniang Panlalawigan for the purchase of the vehicles, and lump sum funds were illegally used, according to the report.
Commission on Audit rules also bans the use of cash advances for huge procurements such as the purchase of the vehicles.
.
The House plenary voted to uphold the recommendation of the good government panel last March but the report was released to reporters only yesterday.
Copies of CR 638 were distributed to the Office of the Ombudsman, the Commission on Audit, the Department of Justice, the Department of Budget and Management, Office of the Solicitor General, the Bureau of Immigration, the Land Transportation Office and the National Tobacco Administration.
Aside from recommending criminal and administrative charges, the House also approved the recommendation that legislation is drafted to “prevent abuse in the utilization of tobacco funds.”
Earlier, the COA disclosed that it has uncovered several irregularities in the procurement of at least P100 million worth of goods and services made in the past two years by the Ilocos Norte government, whose questionable procurement practices are under scrutiny in the House of Representatives.
IN its 2017 annual audit report for the provincial government, the COA disclosed that there has been a “clear manifestation of the fabrication” of supporting papers for the disbursement and payment of suppliers and contractors.
This was uncovered after state auditors scrutinized the Invitation to Bid (ITB)reference numbers stated in the Philippine Government Electronic Procurement System which is the primary source of information on government procurement.
In 2016, transactions for medical purchases amounting to some P21.7 million from CN Medical Distribution were allegedly supported by fabricated copies of ITB.
Larger procurements backed by bogus copies of ITB purchases from Dashma Computer System and Services, P123,718.00; Shawin Konstruct Const and Construction Supply, P51,950.00; BF Merren Pharmaceuticals, P1.5 million; St. Ruiz Agro Farm Supply, P356,256.00.
Irregularities in the purchase of vehicles totalling at least P66 million in the province’s tobacco excise tax share and made under the administration of incumbent Governor Imee Marcos have been investigated by the House Committee on Good Government and Public Accountability.
The House panel chaired by Surigao del Norte Rep. Johnny Ty-Pimentel has recommended the filing of adminsitrative and criminal charges against involved officials,
IN the audit report, the CoA also recommended the filing of “appropriate legal charges” against persons involved in the invitation of a representative from a non-government organization to act as an observer in the conduct of bidding process.