“There is a proper process prescribed in Republic Act No. 9184 (Government Procurement Reform Act) concerning the termination of a procurement project and there are specific conditions that must be present in order to invoke it, none of which are existing at the moment in this project,” the Department of National Defense (DND) said in response to call for cancellation of Frigate Acquisition Project for Philippine Navy.
“We must point out that the anomalies being cited by MAGDALO Party list Representative Gary Alejano are mere allegations and innuendos which are not legal grounds for termination of the project,” the DND added.
In his privilege speech early this week, Magdalo Partylist Representative Gary Alejano said “there are clear violations by the contractor of the contract, which endangers [Armed Forces of The Philippies] modernization program and our national security.”
“By all means, we should cancel the frigate project contract before it’s too late,” Alejano added. “I know we need modern fighting equipment, but we should not allow business interest to prevail over national interest.”
“In my investigation, HHI employed the strategy called ‘bait and switch,’ which means the contractor baits the buyer or client by offering superior systems or products and once he bags the contract he will find means to go around and eventually choose the lesser or inferior and thus cheaper systems or products to maximize profits,” Alejano said.
The frigate acquisition project was initiated under Aquino administration, however, Notice of Award to Hyundai Heavy Industries (HHI) was signed on August 18, 2016; DND and HHI signed the contract on October 25, 2016; and HHI received the Notice to Proceed on December 13, 2016.
Sources: https://youtu.be/f-0i0_vn-TM?t=1h1m25s; https://www.facebook.com/DNDPHL/posts/1685523654837977