Non-compliance with the requirements of Republic Act No. 9184 (Government Procurement Reform Act)

See - Office of the Ombudsman





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        The Office of the Ombudsman affirmed its finding of probable cause for violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) against erstwhile officials of the Department of Transportation and Communications (DOTC) Telecommunications Office (TELOF), namely: Assistant Secretary Lorenzo G. Formoso III and Project Manager II Arthur P. Ancheta.

          As embodied in its 10-page Order, the Office of the Ombudsman sustained its findings in the anomalous procurement and installation of EXS Parts and Expansion for the Iloilo Toll Center in 2006.  Investigation disclosed that Formoso and Ancheta, acting in concert, exhibited manifest partiality, when they resorted to direct contracting in the acquisition of an EXCEL switch worth P24,805,000.00 awarded to Advance Solutions, Inc. (Advance).  The award was made without complying with the requirements of Republic Act No. 9184 (Government Procurement Reform Act) and was made without Advance’s submission of an exclusive distributorship or licensing agreement exhibiting the supplier’s proprietary rights over the products.  

            Further, the Office noted the irregularity and evident bad faith when Formoso and Ancheta pushed for the direct procurement of supplies from Advance without the participation of the Bids and Awards Committee. 

            Ombudsman Conchita Carpio Morales stated that “the obvious intention was to circumvent the public bidding requirement so that respondent Formoso and Ancheta’s preferred supplier, whom they contacted directly, can get the contract in question.” 

          The Ombudsman explained that manifest partiality exists, within the contemplation of Section 3(e) of RA 3019, when “there is a clear, notorious, and plain inclination or predilection to favor one side rather than the other.” 

            Ombudsman Morales also ordered the conduct of further fact-finding investigation on the involvement of Secretary Virgilio Peña, Commissioner Elberto Emphasis and Arnold Ong of Advance Solutions in the questionable transaction. 

          Meanwhile, owing to insufficiency of evidence, the charge against Staff Engineer George Tardio was dismissed.

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