Supplier says DepEd suspension order has no basis

MANILA, Philippines - A supplier suspended by the Department of Education (DepEd) for supposedly failing to deliver on one of its contracts insisted the order has “no basis” as the issue is still pending before the Office of the President.

PHILAB Industries Inc. said DepEd could not issue the suspension order as the termination of contract on which it was based remains pending in Malacañang.

The issue stemmed from the suspension order signed by Education Secretary Leonor Briones, who informed PHILAB chairman and chief executive officer Hector Thomas Navasero on Nov. 7 that the company is suspended for one year from participating in the procurement process of the department.

Briones suspended PHILAB following the partial termination of a P113.4-million contract for the delivery of science and mathematics equipment to 544 public high schools last Dec. 23, 2015 “on the ground of default of the supplier.”

The termination was affirmed in a decision denying the motion for reconsideration filed by PHILAB, signed by former education secretary Armin Luistro on Feb. 4, 2016.

But PHILAB yesterday stressed Briones could not issue the suspension as partial termination since the appeal they filed in February is still pending with the Office of the President.

“The partial termination of the contract is not yet final and executory,” Navasero said.

Navasero also defended the delays, citing enormous bureaucracy in the government agencies such as inconsistencies in orders from the procuring entity.

“Example: the national head office provides an official notice to proceed with production then several months after, the same office will state that PHILAB has to change the specifications or the mass produced items will not be accepted. And no allowance for said change order is given. This is one of many causes of delay,” Navasero pointed out.