Ombudsman clears DepEd execs in noodle scam

MANILA, Philippines - The Office of the Ombudsman has dismissed a multimillion-peso graft case against former education secretary Jesli Lapus and five other officials of the Department of Education (DepEd) accused of involvement in the noodle scam case of 2007 and 2009.

Ombudsman Conchita Carpio-Morales said the anti-graft agency found insufficient evidence to hold them administratively or criminally liable for alleged bid rigging.

Among those cleared were DepEd Assistant Secretary for Special Concerns Thelma Santos, Bid and Awards Committee (BAC) chairman Teodosio Sangil, BAC vice chairman Macur Marohombsar, and BAC members Demetria Manuel and Nanette Mamoransing.

Also absolved was Alex Billan, president of Jeverps Manufacturing Corp., who was named as a private respondent in the case two years ago.

The graft and grave misconduct complaint against Lapus and other DepEd officials arose from the alleged overpriced purchase of fortified instant noodles “with fresh eggs” in 2007 and fortified noodles “with fresh eggs and malunggay” in 2009. Their accusers were Prudencio Quido Jr. and Myrna Gonzales.

In a Joint Resolution approved on March 6, 2012, Morales said the accusation that the biddings were rigged and favorably awarded to one and the same winning bidder was negated as undisputed facts have shown that the biddings were posted and published in a newspaper of general circulation.

On account of the publication, several public bidders, including the complainant’s corporation Kolonwel Trading, actually bought bid documents in 2007.

The ruling said the BAC duly conducted the required pre-bid conferences for the biddings to clarify and explain the requirements, terms, conditions and specifications stipulated in the bidding documents.

Jeverps successfully passed the eligibility check and its bids were declared the single calculated and responsive bids for the procurement of noodles in 2007 and 2009 after the other participating bidders either failed the eligibility check or voluntarily withdrew their bids.

Morales said during the pre-procurement conference, the DepEd’s Health and Nutrition Center as the end-user was the one which recommended to the BAC that the noodles to be procured should be 100 grams per pack to save on cost, and that the required phrase “with fresh eggs,” instead of merely “eggs,” be added to the title of the product to emphasize the actual use of fresh eggs in the preparation of the noodle dough.

The complainant has not shown “a palpably fraudulent and dishonest purpose to do moral obliquity or conscious wrongdoing for some perverse motive or ill-will” on the part of the respondents, nor that they acted through evident bad faith, manifest partiality or gross inexcusable negligence during the assailed procurement process, read the decision.

The Office of the Ombudsman did not also find substantial evidence of misconduct against the respondents.

“In the absence of the actual canvass sheets and or price quotations from identified suppliers as a valid basis for comparing the prices to the winning bidder, the respondents cannot be held liable for the alleged overpricing of the noodles,” read the decision.

The resolution said allegations of overpricing were not substantiated since the Review Committee that then Undersecretary Ramon Bacani headed found that the price DepEd had paid to the winning bidder was reasonable.

“It appearing that the complainants’ letter of protest and opposition to the awarding of the biddings to Jeverps were seasonably acted upon by the respondents in their reply letter dated 23 February 2009 denying the same for having filed out of time, the respondents cannot be faulted therefore,” read the resolution.

The Office of the Ombudsman said the certification from Uni-Vietnam Co. Ltd. that the noodles do not contain fresh eggs cannot be considered conclusive since the government has not officially accredited the company to conduct the analysis, in addition to the fact that the Bureau of Food and Drugs’ test report had confirmed the quality and contents of the noodles.

DepEd had conducted a Nutritional Status Report on the Food for School Program, contrary to the complainant’s claim that no “check ups” were made with students in a feeding project, the agency added.

The complainant did not assail the validity of the Status Report.

Morales said the complainants failed to overturn the presumption of regularity in the performance of official duties.

The contract for the 2007 procurement of the 16,495,718 “Fortified Instant Noodles with Fresh Eggs” amounting to P283,626,515.66 under the Food For School Program was awarded to Jeverps.

In 2008, DepEd, through a repeat order, awarded again the contract for the procurement of 3,837,600 pieces of the same pack noodles amounting to P66,620,736 to Jeverps under its Low Performing Schools Breakfast Feeding Program.

In August 2010, the Office of the Ombudsman’s Field Investigation Office recommended graft charges against Lapus after a fact-finding investigation.

In February 2011, then Ombudsman Merceditas Gutierrez issued six-month preventive suspension orders against the respondents.