Scrapping of bidding for acquisition of six night-capable attack helicopters will not deter government's drive against security threat groups

By Ronron
January 27, 2008

The Philippine defense department remains confident that the scrapping last week of the bidding for the acquisition of six night-capable attack helicopters (NCAH) due to some irregularities will not affect the government's operations against security threat groups.

Defense Undersecretary Ariston delos Reyes said that while it would have been better for the Armed Forces of the Philippines (AFP) to have the MD530F in its inventory, the current assets is sufficient to sustain the fight against communist insurgents and Moslem extremists in the countryside.

"I would say that it would have been better if we have those assets. However, it doesn't mean that the internal security operations will be adversely affected if we don't have these choppers because we still have in our inventory the likes of MG520 and the Hueys," delos Reyes said.

In a memorandum dated January 24, 2008, Defense Secretary Gilberto Teodoro, Jr. declared as "null and void" the bidding for six MD530F worth over P1.2 billion, wherein Asian Aerospace Corp. (AAC) pre-qualified, because of the company's failure to meet the 3,000-pounds minimum payload requirement and apparent intention to offer a highly excessive price. Further, there was a failure to actually test in the United States the capability of said chopper to meet the minimum payload requirement.

On those grounds, Teodoro recommended the filing of administrative and criminal cases against AAC, as well as the conduct of further investigation on the possible liabilities of members of the DND-AFP Bids and Awards Committee, headed by Defense Assistant Secretary Roberto Nuqui.

Delos Reyes said that since a re-bidding will have to be conducted following Teodoro's decision, then definitely, the acquisition process for said choppers will be delayed.

Sought for comment on the matter, AFP chief of staff Gen. Hermogenes Esperon, Jr. said he is glad that the irregularity was discovered at an earlier stage, although he refused to describe it as anomalous.

For him, there were just procedural steps that were not followed to the letter, prompting the review and eventually, the scrapping of the bidding process, he said.

"I'm glad that this happened so as to maintain transparency," Esperon said.

The military chief sounded defensive when asked for his comment on the recommendation to investigate some officials of the AFP over the matter. "The DND Bids and Awards Committee is headed by an Assistant Secretary so it would be them who will conduct the re-bidding. That is not for the Armed Forces of the Philippines to do, although we have AFP officers who are members of that committee," he said.

Among the members of the committee who are from the AFP are Vice Chief of Staff Lt. Gen. Antonio Romero and Deputy Chief of Staff Maj. Gen. Ike Inserto, among others.

The bidding for the six NHAC units wad done in September last year, according to Delos Reyes./DMS