PHilMech backtracks on overpriced tractors

MANILA, Philippines — The new chief of Philippine Center for Postharvest Development and Mechanization (PHilMech) has taken back his statement on the alleged overpriced farm tractors acquired last year, but recommended the filing cases of gross negligence against previous officers responsible for the said purchase.

In a virtual media briefing yesterday, PHilMech executive director Dionisio Alvindia retracted his “overprice” statement and blamed media for misquoting him.

“I stand to be corrected and I apologize for this because the issue was blown out of proportion,” Alvindia said.

“However, I want to make it very clear that there was no corruption committed in the awarding and acquisition of the 1,346 farm tractors, as the P1.3 million price set by the bidding and awards committee for the farm tractors with hydraulic ports is not overpriced,” the official explained.

Just last Monday, Alvindia bared irregularities in the purchase of 1,346 units of four-wheel farm tractors under the Rice Competitiveness Enhancement Fund (RCEF) – Mechanization Program funding for 2021.

Alvindia said the four-wheel farm tractors were purchased at P1.298 million each, higher than the P1.2 million budget approved by the Department of Budget and Management (DBM).

“Because of the agency’s findings, PHilMech will not pay the contractors as we uncovered an overprice for each four-wheel farm tractor. We already have informed the DBM of the matter, while we have sought the legal advice of COA,” Alvindia said in the statement early this week.

The current PhilMech management found it irregular that the farm tractors were purchased at a price not authorized by the DBM, even if the DBM’s specifications did not include hydraulic ports.

In its investigation – as requested by the Department of Agriculture’s legal services, Alvindia said PHilMech found that there was negligence on the part of the management “because they failed to seek the approval of the DBM for the adjusted price before proceeding with the proper purchase of the equipment.”

The bids and awards committee of the agency at that time proceeded with the bidding, awarding and acquisition of the 1,346 farm tractors at an adjusted price of P1.3 million each but with each tractor having hydraulic ports as standard.

This was done after the Bureau of Agricultural and Fisheries Engineering (BAFE) recommended the addition of hydraulic ports to maximize the use of farm tractors – to allow more tasks than the usual land preparation.

“However, since the DBM only authorized a price of up to P1.2 million per farm tractor, I deemed it prudent not to release any payment to the suppliers and sought the position of the DBM, DA and the Commission on Audit (COA) on the matter. The suppliers can also make money claims at the COA, and I am not stopping them from doing that,” Alvindia said.

According to Alvindia, PHilMech is still awaiting the advice of the DBM, DA and COA on the matter.

“While awaiting their advice on what course of action to take, I still find it inappropriate to release payments to suppliers as I do not want to defy the DBM. However, once we get the approval of the DBM, payment immediately follows,” he said.

The Kilusang Magbubukid ng Pilipinas (KMP) is seeking a probe on the overpriced tractors procured by PHilMech. It was revealed that 1,346 tractors worth P1.74 billion were overpriced.

The group also demands full accounting and transparency of the spending of RCEF and the excess revenue collections under Republic Act 11203 or the Rice Tarrification Law.

“Every peso squandered to corruption is a wastage of tax money that should have helped farmers,” KMP chairperson emeritus Rafael Mariano said.

Meanwhile, Amihan National Federation of Peasant Women and rice watch group Bantay Bigas said those responsible for the purchase of overpriced farm should be punished.