Corporate shenanigans

Our friend, director Nestor Mantaring of the National Bureau of Investigation (NBI), has his hands full investigating several cases involving corporate shenanigans such as an alleged bid rigging involving the Government Service Insurance System (GSIS) and the P100 million reportedly stolen from a wealthy taipan.

The NBI is looking into allegations that IBM Philippines interfered in a bidding undertaken by the GSIS for an IBM server. The investigation stemmed from a request by GSIS legal counsel Atty. Star Elamparo to look into a complaint by AC Corp., one of the bidders, that it had been asked by the IT company to withdraw from the bidding.

Since all the three bidders (AC Corp., Questronix and Strategic Synergy) are authorized dealers/distributors of IBM Philippines, Elamparo pointed out that IBM could potentially influence or even dictate the outcome of the bidding since it could give a huge discount to one bidder to the detriment of the others. Naturally, the dealer with a bigger discount will be able to submit a much lower bid than the others, the GSIS counsel said.

Section 65 of Republic Act 9184, otherwise known as the Government Procurement Reform Act, expressly prohibits bidders from employing certain schemes that could restrain the natural rivalry among participants and give them undue advantage over the others. While the IBM is not technically a bidder, it could still be held liable for dictating the bids of dealers as a “third party” by indirectly trying to manipulate the outcome by giving a bigger discount to one dealer/distributor.

Of course, IBM Philippines has denied the allegations, saying that it had conducted its own investigation into the matter and found no irregularities whatsoever in the conduct of its business. Nevertheless, Director Mantaring will be looking closely into the complaint to determine the possible liability of IBM and other parties. The NBI will also be interviewing several members of the bids and awards committee to shed light into the allegations of the GSIS.

Incidentally, the GSIS recently filed graft charges against one of its former senior vice presidents, as well as the country manager of IBM for allegedly extending a software contract without the required authorization from the government agency’s budget and accounting office. The contract, which was supposed to be for a one-year period from Jan. 1, 2007 to Dec. 31, 2007, was reportedly extended illegally until June 30, 2008.

The new contract, which cost over P4.8 million per month, was reportedly executed with a mere conforme letter signed by the VP and the IBM executive without the necessary certification from the GSIS budget office that funds were available for such an engagement, and that the extension was included in the 2008 procurement plan of the government agency. According to Elamparo, the request for payment was only submitted for approval after the extension contract had been signed by the two parties.

The NBI is also investigating the case of the taipan who reportedly lost P100 million in non-existent helicopter parts. According to sources, among those allegedly involved are the helicopter pilots who connived with several persons to pocket the money meant to buy the chopper parts. Apparently, parts meant to be used only for a maximum of 1,500 flying hours were being stretched for up to 3,000 hours. A source from Eurocopter Philippines, (the official distributor of Ecureuil – meaning “squirrel” – helicopters noted for their high performance and safety even in mountainous areas and demanding conditions) was quoted as saying that the businessman and his family were lucky to be alive.

The taipan’s personal pilots were treated well, with fat allowances and special trainings and scholarships to hone their flying skills, which makes the discovery of the theft even more upsetting for the taipan. These pilots were not only compromising the safety of their passengers but their own as well – which makes the crime even more detestable at the thought that some people have become so greedy that they are even prepared to risk their own lives. According to the taipan’s lawyer, they will make sure that these people will be made fully accountable for their shenanigans. The NBI for its part is leaving no stone unturned to get into the heart of this case.

No doubt the NBI is a highly respected agency, and is one of the few government institutions that has the belief and confidence of the people that it can do the job. In fact, ordinary Filipinos seeking justice regard the agency as their last resort. It can be recalled that at the height of the scandal involving the “Euro-generals,” people were surprised to find out that the NBI delegates to the Interpol conference in Russia were given only a little more than P8,000 for their daily allowance while their counterparts at the Philippine National Police were getting as much as P42,000 per day.

But people who are familiar with NBI director Nestor Mantaring are not really surprised. After all, Mantaring – whose career spans close to four decades and who rose from the ranks starting as a finger print aide in the late ’60s – enjoys the trust and respect of his people. Just recently, its anti-human trafficking division successfully nailed and arrested an illegal recruiter who has been victimizing people from the provinces who were hoping to find work overseas as chambermaids and domestic helpers.

Despite the fact that their resources can be stretched thinly at times, the NBI operatives still manage to deliver, so to speak, going after all kinds of crooks, from illegal recruiters to LPG hoarders to carnappers to big-time corporate criminals especially those who victimize ordinary Filipinos and hardworking OFWs and their families.

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