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Manila Bulletin devider Philippines devider National devider Imee seeks probe on DA's alleged purchase of overpriced tractors

Imee seeks probe on DA's alleged purchase of overpriced tractors

Published Sep 26, 2022 03:29 pm

Senator Imee Marcos has sought a Senate probe on the Department of Agriculture's (DA) alleged purchase of overpriced tractors worth P1.737 billion.

In her Senate Resolution (SR) 213, Marcos said there are concerns that the discovery of such irregularity would cause delay in the implementation of vital programs such as ramping up mechanization of farms, thereby adversely affecting the country’s agriculture sector.

Marcos cited a constitutional provision which says that, '"the State shall promote Industrialization and full employment based on sound agricultural development and agrarian reform, through Industries that make full and efficient use of human and natural resources, and which are competitive In both domestic and foreign markets".

The Marcos resolution cited a report that the Philippine Center for Postharvest Development and Mechanization (PhilMech) bought 1,346 hand tractors worth P1.737 billion.

It stated that on Sept. 6, Dionisio Alvindia, the new chief of PhilMech, said that he has uncovered irregularities in the purchase of the tractors under the DA’s farm mechanization program.

According to news reports, the tractors were purchased for P1.298 million each under the Rice Competitiveness Enhancement Fund (RCEF)- Mechanization Program funding for 2021.

Alvindia alleged that the procured farm machinery was overpriced by nearly P100,000 per unit, and that the approved budget for the contract or the maximum price set by PhilMech for every unit of four-wheel tractors should have been P1.2 million only.

On Sept. 9, Alvindia stated during a press conference that former Agriculture Secretary William Dar issued a memorandum to stop the bidding for the tractor contract, but the bids and awards committee went ahead with the proceedings.

According to Alvindia, the bidding committee did not follow the specifications laid out by the Department of Budget and Management (DBM).

He, however, refused to mention the names of the people implicated in the issue.

The DA’s internal audit services is currently investigating the questionable and alleged overpriced tractor deal.

Former PhilMech Director Baldwin Jallorina refuted Alvindia's allegations of overpriced purchase under the 2021 RCEF fund.

Jallorina explained that the procurement of the four-wheel tractors were based on a market research, in consideration of the ""technical specifications" conducted by a technical working group (TWG) composed of experts within PhilMech.

He stated that the bidding documents of PhilMech showed that the approved budget for the contract set by the agency for the supply, delivery, and testing of four-wheel tractors for Regions I, CAR, II, III, IV-A, IV-B, V, VI, VII, VIII, IX, X, XI, XII and BARMM funded under 2021 RCEF was PI.3 million.

Because of the irregularity, PhilMech announced that it would not be paying the contractors of the farm tractors and has sought the legal opinion of both the Commission on Audit (COA) and the DA's legal service.

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