From flood to fire control: Gov't lost P2.1 B in anomalous purchase of firetrucks
DILG Secretary Juanito Victor “Jonvic’’ Remulla (Photo courtesy of PNP via DILG)
At least 45 former and active officials of the Bureau of Fire Protection (BFP) are now facing graft charges for alleged rigging of the bidding for the procurement of firetrucks for six years starting 2018 involving around P2.1 billion losses to corruption.
Department of the Interior and Local Government (DILG) Secretary Juanito Victor “Jonvic” Remulla said they are now preparing the cases that will be filed before the Office of the Ombudsman against the officials, including three former BFP heads.
In a press briefing, Remulla said among those who will be charged were former BFP director Leonardo Banago and Louie Puracan, and suspended BFP chief Jesus Fernandez.
He said the same charges will be filed against other BFP officials, particularly officers and members of Bids and Awards Committee, Technical Working Group, and Technical Specifications Committee involved during the firetruck procurement cycles.
Also impleaded are two private suppliers which Remulla said were favored during the entire procurement process.
Supposedly, each firetruck cost P9 million but each unit was bought at P15 million each—an overprice of around 70 percent according to Remulla.
“Our estimate is around 350 fire trucks times P6 million,” Remulla said, adding that the bid-rigging from 2018 to 2024 resulted in P2.1 billion ending in the pockets of corrupt BFP officials and personnel.
All of the respondents will be facing both administrative and criminal charges, including grave misconduct, serious dishonesty, gross neglect of duty, conduct prejudicial to the best interest of the service, and violation of Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act.
How it was done
According to the complaint, officials allegedly tailored technical specifications for firetrucks over several years to favor only two suppliers, effectively restricting competition.
The investigation report disclosed a sharp increase in the cost of 1,000-gallon firetrucks, from ₱5.975 million per unit in 2014 to nearly ₱15 million in 2024, despite the absence of any documented market study or justification.
The report further detailed serious lapses in the procurement process, including the absence of proper deliberations and official records, failure of oversight bodies to conduct independent review of technical specifications, and pre-bid conferences that did not meaningfully address bidders’ queries or result in the issuance of required bid bulletins.
Remulla said a separate findings from the Bureau of Customs also flagged the same suppliers for undervaluing import declarations by more than 30 percent and failing to present key financial documents during audit proceedings.
The discovery
Remulla said he discovered the anomalies when an aide of a top BFP official approached him last year and committed a P1.5 million cut for every firetruck that will be bought by the agency.
He said he immediately ordered an investigation and discovered the alleged rampant corruption in the BFP, which he lamented to be a normal practice in the agency involving personnel from top to bottom.
“We think it was a conscious collaborative effort of the BFP top hierarchy on how they would milk the government in the procurement of firetrucks,” said Remulla.
The DILG earlier filed a case against Fernandez in relation to the alleged bid-rigging in the procurement of BFP ambulances.