Our latest report has to do with procurement problems in the Philippine National Police (PNP).

It cites the case of a P54-million

contract to repair rifles intended for use by the PNPs Special Action Force (SAF). The story shows that the contract was given to a
company that had previously bungled a similar job: In 2001, Precision Munitions Inc. repaired police rifles that ended up misfiring
and missing their targets. SAF officers protested the awarding of another contract to the company, but their protests went
unheeded in a bureaucratic maze that is full of loopholes and prone to corruption.
This story examines the procurement problems at the PNP and shows how contracts with suppliers are approved even if they carry
the telltale signs of fraud that have previously been pointed out in other anomalous government contracts, ranging from textbook
purchases to the building of the new airport terminal by Piatco. These indicators of fraud include contracts being awarded to
undercapitalized companies; awards being given on the basis of negotiations rather than open bidding; accreditation procedures
biased for a favored company; and other procedural lapses.
This report records all these lapses in order to show how, despite reforms in the procurement law enacted in 2003, problems
continue. Indeed, SAF officers interviewed for this report believe that the contract was given to the same supplier because of under-
the-table arrangements made with police generals and officials of the Procurement Service of the Department of Budget and
Management or DBM. The new procurement law gave this little-known office at the DBM supervision of the procurement
undertaken by 2,000 state agencies. It signs the contracts on behalf of these agencies, and is the repository of their funds. It also
serves as the final check before government money is released. These tremendous powers naturally come with tremendous
temptations.

CAMP BAGONG DIWA, Bicutan, Taguig Deep inside this police facility is a smaller camp that is home to the Philippine National
Police's commando force. Here, men and women in camouflage uniforms and black berets roam, many of them veterans of the
most dangerous missions running after rebels in Mindanao, pacifying private armies in Abra, or facing off mutinous soldiers at the
Oakwood hotel in nearby Makati.
This is the brigade headquarters of the Special Action Force (SAF), whose personnel like to think of themselves as the Doberman
pack of the PNP. They talk about being fiercely loyal to the civilian government, about being primed for combat and about their
capacity to withstand the harshest conditions in the most severe hardship posts. The unit has some of the PNP's best marksmen. For
this reason, they say, they take their guns seriously.
But some SAF officers were up in arms in September when they learned that the PNP was about to have some 3,700 M14 and M16
rifles repaired and refurbished. This was because the Procurement Service of the Department of Budget and Management (PS-
DBM) had awarded, on the PNP's behalf, the P54-million deal to a company the officers say had earlier bungled a similar repair job.
Many of those repaired guns, SAF officers say, were defective, with some producing "keyhole shots," meaning they missed their
targets as the bullets veered diagonally even when the guns were aimed straight.
"Papayag kaming padala kahit saan, basta gumagana 'yung mga baril namin (It doesn't matter where we are assigned as long as
our guns work)," says one SAF officer, underlining the importance of reliable firearms.
The rifle-repair transaction displays classic signs of a fraudulent procurements deal. To begin with, the contract was awarded to an
undercapitalized company, there was no open bidding for it as only one firm was accredited for the contract, there was undue haste
in the approval of the deal, and there were other procedural lapses.
These telltale signs mark a host of other anomalous government contracts, ranging from textbook deals to multibillion-peso
infrastructure projects like the Piatco contract to build a new international airport terminal in Manila. But the rifle-repair deal also
shows that government purchases run awry not just because of officials accepting bribes, but also because of loopholes in the law,
as well as in the apparently flawed agency implementing it.
Indeed, the issue here is no longer just about the guns, and whether or not they can hit their targets accurately. The SAF's objections
exposed how, in its haste to supply the PNP with much needed assault rifles, the PS-DBM set aside the regular procurement process
and committed the police force to a deal the PNP can no longer back out from.
PNP chief Edgar Aglipay, himself a former SAF commander, has already asked the PS-DBM to stop the project. But even if that
happens, the PNP will still have to pay the supplier because of the way the PS-DBM made the transaction on its behalf.
The PS-DBM is not just any government office. It is the agency taking the lead in reforming the procurement process and
implementing the provisions ofRepublic Act 9184, the new law intended to minimize corruption in procurements. The law outlines
the proper procedures in the award, signing and implementation of all government procurement contracts.
PS-DBM Director Estanislao Granados himself says, "There is a process we must follow, there are requirements we must comply
with, because you know we cannot afford to play around with government money." Ironically, the agency he heads itself failed to
follow stipulated procedures and comply with requirements when it committed P54 million of the PNP's money to Precision
Munitions Inc. for the repair of thousands of rifles.
The PNP had actually set aside P60 million last year to buy 750 brand-new rifles. As of now, the PNP has just a little over half of the
M14s and M16s it needs. The M14s are the more powerful, long-range guns used for sniper fire, while the M16s, which make up the
bulk of the PNP's long-arms arsenal, are the standard firearms needed by the SAF, mobile groups and regular policemen for patrol
and assault.
After reviewing the funds, however, the PNP decided instead to repair and refurbish some 3,700 M14 and M16 rifles on loan from
the AFP. According to the PNP's Directorate for Logistics, the PNP thought it would get more out of its money if it were to have the
guns repaired and refurbished.
Under RA 9184, the PNP would have had to inform the PS-DBM of its intention to have the firearms fixed. The PNP would then
submit its request, containing the items it needed and the amount of money it had available. The PS-DBM would convene an Inter-
Agency Bids and Awards Committee (IABAC) to invite bids for the project, evaluate them and then award the deal to a qualified
supplier or contractor. A contract would then be signed, but only if there are funds available for the project.
The bids and awards committee in this case saw no need for a public bidding. Based on a list submitted by the PNP's Directorate for
Research and Development (DRD), there was only one company accredited to repair and refurbish M14 and M16 rifles: Precision
Munitions Inc. It used to be known as Precision Technology Producers' Cooperative, and for the past three years, it has handled all
the PNP's rifle repair and refurbishment needs. The DRD certified that no one else has applied for accreditation, and there are no
applications currently pending.
But at least one other company has confirmed that it has a pending application for accreditation, which the DRD has not acted upon.
In addition, the PNP closed the door on other companies that were licensed but not accredited. "Accreditation is not required by
law," says Atty. Norman Daanoy, of the Legal Affairs Office of the Department of National Defense, who was one of those who
drafted the Implementing Rules and Regulations of RA 9184. Daanoy says it is enough that a company has a license, in the case of
guns an indent license or a license to manufacture from the Firearms and Explosives Division of the PNP. Requiring accreditation,
aside from a license, he explains, only adds a level of bureaucracy that makes the system vulnerable to corruption.
DRD Chief Gen. Doroteo Reyes II, however, justifies the accreditation process: "Transacting business with the PNP is a privilege.
That's why we accredit." Reyes says this is the only way the PNP can ensure that all contracts benefit the government and the PNP.
What RA 9184 does require, though, is a scrutiny of the company's track record and similar contracts with the government. But the
PS-DBM did away with that in this case. Says Granados: "In this instance we didn't ask for track record. We just asked for (the
accreditation list). The PNP has a regulatory function, and the PNP said ito lang."
In fairness, Precision has the capability to repair and refurbish M14s and M16s. The company is composed of former managers and
employees of the now defunct Elitool Manufacturing Corporation of the Elizalde Group of Companies that later became the M16
rifle factory of the Armed Forces of the Philippines. The factory had its heyday in the early years of martial law when the Philippines
was one of few countries producing M16s.
"We were the ones who produced those rifles we are repairing and refurbishing now," says Precision Chair Edgar Lucas.
Still, the way it botched its previous job with the PNP should have raised a red flag had the PS-DBM taken a closer look at its records.
Sometime in August 2001, battalion commanders and other officials of SAF had made known their complaints about the rifles fixed
by Precision under a contract signed that year between the PS-DBM and the SAF. Among the complaints contained in various memos
were keyhole shots, faulty extractors, and guns that didn't function on automatic firing mode.
Precision's Lucas admits that during testing for a batch of rifles repaired and refurbished in 2001, there were some that didn't work
properly. "There are times na may problema ang baril eh kung minsan di nago-automatic and that's the time that we bring it up here
(to our factory) and it gets repaired. And then ibabalik mo naman dun...because these are old, old guns."
Lucas, however, says that the SAF had complained too late. He says by the time it did so, the one-year warranty period had lapsed,
although he was still willing to take in repairs.
But documents have SAF lawyer Benjamin Supnet Nadugo noting on August 16, 2001 that, "The contract is not dated. Although
signed by parties and notarized, the same needs to be dated in order to determine its validity and effectivity." Nadugo also pointed
out that "the exact date of delivery is not stated," putting to question issues about the warranty.
Yet solely because Precision was the only accredited PNP supplier for the job, no public bidding was done for the rifle-repair-and-
refurbishing contract this year. Instead, on September 7, 2004, with a public bidding considered unnecessary, the PS-DBM awarded
the project to Precision.
The problem was, at the time, there were still no funds available. Drafting and signing a contract was therefore out of the question.
A Notice of Cash Allocation (NCA) was later received by the DBM on September 23, but that still is not what was needed for a formal
contract.
What Precision got from the PS-DBM was a Memorandum of Understanding (MOU), even though there is no provision in RA 9184
and its IRR that allows or recognizes such a memorandum. Only a contract, accompanied by the DBM accountant attesting to the
availability of funds, is a valid procurement agreement.
Granados says the PNP was in a hurry to have the firearms serviced, and the supplier was willing to settle for an MOU, so that he
could start work on the rifles, and have something tangible to show when time came to collect. "We told him we will not be able to
pay you under the MOU, kasi walang certification of funds," Granados narrates.
The PS-DBM allowed the supplier to proceed, and promised it would eventually issue a purchase order so that Precision could be
paid for whatever work it could finish. This whole process was done with the knowledge of the IABAC, a body composed of
representatives from various agencies, among them the Philippine National Police, represented by SAF commanding officer Gen.
Marcelino Franco.
Lucas says labels do not matter so long as funds eventually came in. "Whether we call it an MOU or a contract," he says, "what is
important is that there was a meeting of the minds on this project."
The supplier has reason to sound confident. DBM Assistant Secretary and IABAC chairperson Eduardo Opida says that the MOU
would be the supplier's guarantee it could collect later on. Even if the PNP had not made any advance payments, Opida says the
supplier was already assured of money coming his way. He says, "Kung gumalaw man siya meron siyang basehan para maningil siya.
(He could start working because he already had something he could use come collection time.)"
The PS-DBM is sure that no matter what happens, the supplier will be paid. "Under the laws of the land, Precision will have to be
compensated for what they have already done, for services rendered. Wala tayong excuse kasi sila mismo (PNP) ang nag-request
(We have no excuse because the PNP itself made the request)," Granados says.
Granados is not that off the mark. Because the supplier had done work and had an MOU, the law says he needed to get paid. Yet
had proper procedures been followed, the deal could have been stopped, since going by the chronology of events, there was still no
certification of funds available at the time the MOU was signed.
But the PS-DBM seems to have forgotten the rules and procedures it helped write. And so despite PNP chief Aglipay's request, the
repaired and refurbished assault rifles will be delivered to the PNP's doorsteps at gunpoint, figuratively speaking. And the police
force will still have to pay for them.

The Feed | Sale Alerts
DILG Secretary Jesse Robredo questions PNPs pricey,
unused Ondoy boats
Publi shed on: Jul 13, 2011 - 12:00pm

(SPOT.ph) Interior and Local Government Secretary Jesse Robredo is investigating the Philippine National Polices (PNP) P131-million
procurement of 75 rubber boats and 93 outboard motors in 2009, reports ABS-CBN News. According to Robredo, the merchandise was
bought after Typhoon Ondoy hit the metro but they did not follow the specifications required by the National Police Commission
(Napolcom).

He told reporters yesterday, July 12, that since the rainy season has begun, the boats should already be utilized. Instead, they remain unused.
The motors cannot be attached because the boats are only for 40 horsepower outboard motors but what was bought were 60 horsepower
outboard motors...When you attach the 60 horsepower motors, lulubog yung (it will sink the) rubber boats, he added. His team also
discovered that the motors were overpriced at P500,000 compared to the market price of P350,000.

The DILG chief assures, however, that in case another Ondoy hits, the rubber boats can be used with paddles. Robredo is also concerned with
a procurement of P90-million worth of patrol boats. The patrol boats are also kept in storage after the end-users rejected them for not
complying with Napolcom standards.

Robredo said that PNP chief Raul Bacalzo has ordered the investigation of similar PNP transactions to check for more violations. Robredo
added that former PNP chief Jesus Versoza could face charges after approving the overpriced procurements during his term. He also clarified
that former DILG chief Ronaldo Puno was not linked to the transactions.

Just before the boat issue broke, the DILG was studying a similar casePNPs procurement of overly expensive helicopters in 2009.
A Philippine Star report yesterday mentioned that Robredo filed charges against three police officials responsible for the purchase. These are
director George Piano, senior superintendent Loi Saligumba, senior superintendent Nolan Antonia, and Superintendent Edgar Bataan.


11 PNP officials dismissed over rubber boat
anomaly
By Michael Punongbayan (The Philippine Star) | Updated February 6, 2013 - 12:00am
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MANILA, Philippines - Ombudsman Conchita Carpio-Morales ordered yesterday the dismissal from the service of two police generals,
suspended eight other police officials and personnel, and admonished a National Police Commission (Napolcom) official for their alleged
involvement in the anomalous purchase of police rubber boats in 2009.
Records showed that the Philippine National Police purchased P131.5 million worth of 75 rubber boats for the PNP Maritime Group and 18
outboard motors that were defective.
In a 118-page decision, Morales said Chief Superintendent Herold Ubalde and Deputy Director General Benjamin Belarmino Jr. were found
guilty of the administrative case for grave misconduct and gross neglect of duty and were ordered dismissed. Both have retired from the
service.
They were also slapped with the accessory penalty of losing all their retirement benefits and perpetual disqualification from holding public office.
In case such penalties can no longer be served by reason of resignation or retirement, Morales said the alternative penalty of fine equivalent to
one-year salary is imposed in addition to the accessory penalties.
For simple neglect of duty, Director George Piano, Chief Superintendent Luis Saligumba, and Senior Superintendents Job Nolan Antonio and
Edgar Paatan, as members of PNP Inspection and Acceptance Committee, were ordered suspended for six months without pay.
Morales said Bids and Awards Committee (BAC) and Technical Working Group (TWG) members Joel Crisostomo de Leon Garcia, Ronald Lee,
Ma. Linda Padojinog, and Ruben Gongona were ordered suspended for one month also without pay.
Napolcom Director Conrado Sumanga Jr. was warned to be more circumspect in his duties after his alleged failure to take a more proactive
stance as a member of the Oversight Committee and acting service chief of the Installations and Logistic Service.
Verzosa absolved
Retired PNP chief Jesus Verzosa, the highest-ranking police official implicated in the rubber boat scam, was absolved of the administrative
charges because of his retirement.
The Ombudsman, however, ordered the filing of separate graft charges against Verzosa, Ubalde and Belarmino, and several other police
officers before the Sandiganbayan in September 2012 in connection with the rubber boat anomaly.
Verzosa along with 18 other respondents retired in September 2010.
The Ombudsman said Verzosa was spared from the administrative case for lack of jurisdiction in view of his retirement prior t o the filing of the
complaint.
Likewise exonerated were 17 other respondents in the administrative case for insufficient evidence.
Verzosa and the other officers were indicted for graft charges based on complaints filed by the Office of the Deputy Ombudsman for the Military
and Other Law Enforcement Offices Fact-Finding Bureau (FFIB-MOLEO) in November 2011 and February 2012.
The PNP purchased the P131.5 million worth of 75 rubber boats and 18 spare engines or outboard motors as part of the PNPs Annual
Procurement Plan for 2008 under its Capability Enhancement Program Funds through negotiated procurement.

Cops in helicopter procurement anomaly lose appeal
By Tetch Torres |INQUIRER.net
6:49 pm | Thursday, November 22nd, 2012

MANILA, PhilippinesThe Office of the Ombudsman denied the appeal filed by police officials and personnel to reverse
its earlier ruling finding them liable for their alleged involvement in the questionable procurement of helicopters.

In a 49-page Order signed on 19 November 2012, Ombudsman Conchita Carpio Morales denied for lack of merit the
Motions for Reconsideration filed by Police Director Leocadio Salva Cruz Santiago, Jr., Police Superintendents Ermilando
Villafuerte, Roman E. Loreto, Chief Superintendents Herold G. Ubalde, Luis L. Saligumba, Senior Superintendent Job
Nolan D. Antonio, Director George Q. Piano, Senior Superintendent Edgar B. Paatan, P/SSupt. Mansue N. Lukban, Chief
Inspector Maria Josefina Vidal Recometa, P/SSupt. Claudio DS Gaspar Jr., Senior Police Officer 3 Ma. Linda A. Padojinog,
PO3 Avensuel G. Dy, and NUP Ruben S. Gongona, who were meted the penalty of dismissal from the service.
Morales also denied the appeal filed by P/SSupt. Joel Crisostomo DL Garcia, SPO3 Jorge B. Gabiana, PO3 Dionisio
Jimenez, NUPs Erwin O. Chavarria, Emilia A. Aliling, and Erwin Paul Maranan who were meted the penalty of suspension
from the service for six months without pay.

Morales said the police officers and employees failed to present new evidence that would warrant a reversal of their
previous decision.

They likewise failed to show that grave errors of facts or laws or serious irregularities have been committed by this
Office prejudicial to their interest, Morales said in her ruling.
The Ombudsman reiterated its findings in the Joint Resolution dated May 30, 2012 that the said PNP officers
participated in the whole procurement process, which makes it impossible for private supplier Hilario B. de Vera or
Maptra Sole Proprietorship to be able to deceive them without their cooperation.
The case stemmed from the PNPs questionable purchase from Maptra of a fully equipped Robinson R44 Raven II Light
Police Operational Helicopter (LPOH) for P42,312,913.10 and two standard Robinson R44 Raven I LPOHs for
P62,672,086.90, or for a total amount of P104,985,000 from 2009 to 2010.
The Ombudsman investigators discovered that MAPTRA has no technical and financial eligibility required by law. The
Ombudsman also discovered that Maptra delivered only one brand new Robinson Raven II LPOH while the two delivered
Robinson Raven I LPOHs were actually pre-owned by the former First Gentleman Jose Miguel Arroyo.

Aside from the administrative sanctions, criminal cases were also filed against the said officers and personnel before the
Sandiganbayan.



MANILA TIMES
Court clears PNP official in chopper scam
November 28, 2013 9:41 pm
by J omar Canlas Senior Reporter

THE Court of Appeals (CA) has exonerated and reinstated a former official of the Philippine National Police (PNP) who was
found administratively liable by Ombudsman Conchita Carpio Morales along with several others in connection with his
involvement in the anomalous procurement of P104-million helicopters.
In a 35-page decision penned by Associate Justice Magdangal de Leon, concurred by Associate Justices Stephen Cruz and
Myra Garcia-Fernandez, the Courts Eleventh Division granted the petition for review, erroneously denominated as an appeal,
filed by Police Chief Supt. Luis Saligumba.
Petitioner [Saligumba] is hereby exonerated from the administrative charges and ordered reinstated to the service, the ruling
reads.

In a May 30, 2012 joint resolution, Ombudsman Conchita Carpio Morales found Saligumba guilty for Serious Dishonesty and
Conduct Prejudicial to the Best Interest of the Service.

Besides Saligumba, Police Dir. Leocadio Salva Cruz Santiago Jr., Police Supt. Ermilando Villafuerte, Police Supt. Roman
Loreto, Police Chief Supt. Herold Ubalde, Police Sr. Supt. Job Nolan Antonio, Police Director George Piano, Police Sr. Supt
Edgar Paatan, Police Sr. Supt. Mansue Lukban, Police Chief Insp. Maria Josefina Vidal Reco, Police Sr. Supt. Claudio DS
Gaspar Jr., Sr. Police Officer 3 Ma. Linda Padojinog, Police Officer 3 Avensuel Dy, and NUP Ruben Gongona were also meted
the penalty of Dismissal from the Service with accessory penalties of forfeiture of retirement benefits and perpetual
disqualification to hold public office, provided that if the penalty can no longer be served by reason of resignation or retirement,
the alternative penalty of fine equivalent to one-year salary is imposed in addition to the abovementioned accessory penalties.
The case stemmed from the PNP purchase from Maptra of one fully equipped Robinson R44 Raven II Light Police Operational
Helicopter (LPOH) for P42 million) and two standard Robinson R44 Raven I LPOHs for P62 million, or a total amount of P105
million from 2009 to 2010.

The anti-graft office held that the anomaly could not have been possible without the participation of the respondent public
officials and personnel as well as that of respondents former First Gentleman Mike Arroyo and Maptra President Hilario de Vera.

This prompted Saligumba to bring his case to the appeals court, which ruled in his favor.
In the ruling, the CA said Saligumba should not be faulted for affixing his signature in the Inspection and Acceptance Committee
(IAC) Report.

[H]aving no technical or working knowledge about helicopters, petitioner [Saligumba] had every reason to rely on the report
prepared by the composite technical inspection team which was in a better position to know what to check in a helicopter and its
true condition, the CA decision said.
Furthermore, petitioner had no reason to doubt the result of the inspection made by the composite technical inspection team
and the recommendation made as a result thereof.
CA reverses Ombudsman, exonerates PNP
exec in helicopter scam purchase
By: Perfecto T. Raymundo, Philippines News Agency
September 2, 2013 6:38 AM

InterAksyon.com
The online news portal of TV5
MANILA -- The Court of Appeals has reversed a ruling of the Office of the Ombudsman dismissing an official of the Philippine
National Police for his alleged involvement in the controversial procurement of PNP helicopters.
In a 10-page ruling promulgated on 14 August 2013 and written by Associate Justice Marlene Gonzales-Sison, the CA's Sixth
Division granted the petition for review filed by police director Leocadio Salva Cruz Santiago Jr.
Santiago was one of the 14 PNP officials and personnel dismissed and suspended by the Ombudsman last year.
"Wherefore, premises considered, instant petition for review is granted such that the joint resolution and order dated 30 May
2012 and 05 November 2012 respectively rendered by the Office of the Ombudsman finding petitioner [Santiago]
administratively liable for serious dishonesty and conduct prejudicial to the best interest of the service are hereby reversed and
set aside. Meanwhile, the urgent motion for temporary restraining order and/or preliminary injunction are denied for being moot
and academic," the CA ruling said.
The questioned purchase
The case stemmed from the PNP's purchase from MAPTRA of one fully-equipped Robinson R44 Raven II Light Police
Operational Helicopter for P42,312,913.10 and two standard Robinson R44 Raven I LPOHs for P62,672,086.90, or for a total
amount of P104,985,000.00 from 2009 to 2010.
The Ombudsman's Special Investigating Panel found, among other things, MAPTRA did not possess the technical and financial
eligibility required by law and it delivered only one brand new Robinson Raven II LPOH while the two delivered Robinson Raven
I LPOHs were actually pre-owned by former First Gentleman Atty. Jose Miguel "Mike" Arroyo.
The criminal cases have been pending with the Sandiganbayan since last year.
Aside from Santiago, also dismissed by the Ombudsman were Police Supt. Ermilando Villafuerte; Supt. Roman E. Loreto; Chief
Supt. Herold G. Ubalde; Chief Supt. Luis L. Saligumba; Senior Supt. Job Nolan D. Antonio; Director George Q. Piano; Senior
Supt Edgar B. Paatan; Senior Supt. Mansue N. Lukban; Chief Insp. Maria Josefina Vidal Reco; Senior Supt. Claudio DS Gaspar
Jr.; Senior Police Officer 3 Ma. Linda A. Padojinog; PO3 Avensuel G. Dy; and Non-Uniformed Personnel (NUP) Ruben S.
Gongona.
The same ruling suspended Senior Supt. Joel Crisostomo DL Garcia; SPO3 Jorge B. Gabiana; PO3 Dionisio Jimenez; and
NUPs Erwin O. Chavarria, Emilia A. Aliling, and Erwin Paul Maranan for six months without pay.
The ruling prompted Santiago to seek redress with the CA.
The CA "finds and rules that petitioner (Santiago) acted in good faith and that to hold him responsible for the alleged fiasco
would send the wrong message that mere association is a grievous sin sufficient enough to deprive a long serving public servant
not only of his livelihood and reputation, but also his honor."
Concurring with the ruling were Associate Justices Hakim Abdulwahid and Edwin Sorongon.


CIDG FILES PLUNDER RAPS VS. EX-FG ARROYO,OTHERS INVOLVED IN "RAVEN CONSPIRACY"
PNP Public Information OfficePublished on 02 September 2011
The Criminal Investigation and Detection Group (CIDG) has formally filed plunder raps with predicate crime
against former First Gentleman Jose Miguel Arroyo and other conspirators involved in the 2009 spurious
procurement of Robinsons R44 Raven 1 helicopters at the Office of the Ombudsman.

CIDG chief, Police Director Samuel D Pagdilao Jr. said that after the approval of PNP Chief, Police Director
General Raul M. Bacalzo of the recommendation, the CIDGs Anti-Fraud and Commercial Crimes Division
(AFCCD) digging into the anomalous purchase of three Light Police Operational Helicopters (LPOH) has charged
26 respondents, including former and present high ranking officials of the PNP and private individuals.

Among the former PNP officials that the CIDG has charged with plunder raps were former PNP chief, retired
Police Director General Jesus AME Verzosa; former PNP deputy chief PNP for operations, retired Police Deputy
Director General Jefferson P Soriano; former director for comptrollership, retired Police Director Romeo C.
Hilomen; former director for logistics, retired Police Director Luizo C Ticman; and former director for Research
Division, retired Police Director Ronald Roderos.

Also included in the plunder case were active officials of the PNP, including Police Director Leocadio Santiago
Jr., Police Director George Q Piano, Police Chief Superintendent Herold Ubalde, and Police Senior
Superintendent Lurimen Detran.

Other private individuals who were also charged along with the said PNP officials were former Interior and
Local Government Secretary Ronaldo V Puno, former NAPOLCOM Staff Service Chief of Installation and Logistic
Service Conrado Sumanga Jr, Hilario de Vera, president of Manila Aerospace Products Trading Inc. (MAPTRA),
Arhibald Po, director of Asian Spirit Inc., Renato Sia, also of Asian Spirit, and former First Gentleman Jose
Miguel T Arroyo, the alleged owner of the two deteriorating choppers.

Pagdilao said that other active officials were charged with Violation of the Anti-Graft and Corrupt Practices Act
in their capacities as members of the Bids and Awards Committee and as part of the team that negotiated the
acquisition of three Robinsons R44 Raven 1 helicopters passed as all brand new at a price of P105-million.

They are Police Chief Superintendent Luis Saligumba, Police Senior Superintendent Job Nolan Antonio, Police
Senior Superintendent Edgar Pataan, Police Senior Superintendent Crisostomo Garcia, Police Senior
Superintendent Mansue Lukban, Police Superintendent Ermilando Villafuerte, Police Superintendent Henry
Duque, retired Police Superintendent Claudo Gaspar formerly assigned at the Air Unit of the PNP-Special
Action Force (SAF); and retired Police Superintendent Larry Balmaceda, also formerly assigned at Air Unit of
SAF and Police Chief Inspector Maria Josefina Recometa.

Pagdilao said that in a formal complaint filed today by the CIDG at the office of Ombudsman Conchita Carpio
Morales, said respondents were charged with plunder with predicate crimes not limited to Section 3(e) of the
Anti-Graft and Corrupt Practices Act, Government Procurement Act in relation to Executive Order 40
(Procurement Rules & Procedures), Section 4(a) of Code of Conduct and Ethical Standards for Public Officials
and Employees, and the applicable provisions of the Revised Penal Code not limited to falsification, perjury,
dereliction of duty, malversation, all committed under the circumstances of conspiracy.

Pagdilao said that CIDGs investigation on the circumstances surrounding the procurement of the PNP
helicopters found out that the transaction was laden with irregularities. The specification issued by the PNP
then was tailored-fit to qualify no other helicopter except the Raven 1 of MAPTRA. They were sold at a price
too expensive even for a brand new Raven 1 helicopter, which only costs P15-million.

Pagdilao said that the CIDG has found out that the Raven helicopters were second hand and not brand new as
the procurement documents said they should be. The procuring entity, in what appears to be blind submission
to powers that be, ignored and disregarded the existence of flight log and engine logbook, which indicated
that each of the two Raven 1 have registered an average of 500 hours of flighta clear manifestation that
these helicopters are used or reconditioned and not brand new as what they were made to appear.
Pagdilao also said that CIDG investigators find it disturbing that almost all respondents who signed the
documents attested that the Raven 1s are brand new. He added that some of the signatories were not even
present during the actual inspection, yet they signed the inspection report nevertheless.

Pagdilao added that there was also a clear and unmistakable deceit in the deliveries of the two Ravens. The
two Ravens bore different serial numbers, and appear far older and dilapidated than the helicopters the
supplier committed under the supply agreement.
Simply stated, different units were delivered instead of what appeared in the agreement. This alone is enough
for criminal indictment for unmistakable breach of Section 3(e) of RA 3019 against the respondents for causing
undue injury to the government, said Pagdilao.
Pagdilao said that the conspiracy to commit plunder with predicate crimes foretold, all started with the
intention of former FG Arroyo to dispose of the two Raven helicopters. He added that Po and De Vera
originally hatched the plan to pass the old helicopters as brand new to the PNP.