• DND exec chopper deal ‘brains’ – Joey

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    A senior official of the Department of National Defense (DND) who attempted to rush the delivery of 21 refurbished UH-1 helicopters from a “favored” American bidder by getting the US Air Force into the picture was on Sunday tagged as the brains behind the controversial deal.

    The DND official got the US Air Force involved on the pretext that the aircraft will be used for relief and rehabilitation operations in areas devastated by Super Typhoon Yolanda in November 2013, a source told The Manila Times.

    The source, who wanted to be identified as “Joey,” claimed that DND Undersecretary Fernando Manalo was the “author” of the deal because he knew from the very start that Rice Aircraft Services was going to acquire the helicopters from Germany.

    The source added that although a notice dated March 25, 2015 showed that eight units were delivered, only seven were actually shipped.

    “Seven units pa lang ang na turn over sa PAF. Pinapalusot pa ni (Defense Secretary Voltaire) Gazmin yung isa pa kaya eight ang inilagay. Kasi mas maraming units na nabayaran, mas malaki ang commission na masisingil (Only seven units have been turned over to PAF. Gazmin is working for the delivery of another unit because the more units that were paid, the bigger the commission),” the source said.

    In a letter dated November 27, 2013 and addressed to the US Secretary of State through the US Ambassador in Manila, Manalo reiterated his request “to have the most number of helicopters delivered at the soonest possible time to augment the air assets being used in the relief and rehabilitation efforts for the victims of the recent super typhoon that struck the provinces in the Central Philippines.”

    Manalo signed the letter, a copy of which was obtained by The Manila Times, in his capacity as chairman of the Special Bids and Awards Committee 1. The letter was coursed through Col. Rocky L. Carter, chief of the Joint US Military Assistance Group (Jusmag) based in Camp Aguinaldo in Quezon City.

    Interestingly, Manalo kept mentioning that the deliveries would involve “UH-1H” choppers. The negotiated contract, sealed with Rice Aircraft Services Inc. (RASI) and its Canadian partner, Eagle Copters Ltd., was for the delivery of “UH-1D” helicopters that were manufactured by the defunct Dornier of Germany.

    “In the letter dated November 15, 2013, this department requested for [sic]your assistance in facilitating the immediate delivery of available refurbished UH-1H helicopters, through the US Air Force, in the event that the declared lowest calculated responsive bidder will be from any of the four US companies who signified to compete for the project,” Manalo said.

    The DND official who, according to informed sources had a previous engagement with RASI involving a Philippine Air Force helicopter bearing “tail number 122,” followed up his “presumptive” letter with the information that “On November 21, 2013, the Joint Venture of US Companies (RASI) and Eagle Copters Limited was declared as the Single Calculated Bidder during the Bid Opening of 21 Refurbished Helicopters.”

    “With the said declaration, this department will negotiate with RASI and Eagle Copters Limited to expedite the processing of the documents and the helicopters due for delivery,” Manlao told the US officials.

    “In this regard, we are reaffirming our request for your support for the speedy delivery of the UH-1H helicopters. These aircraft are very much needed in alleviating the sufferings of our typhoon victims as well as in delivering the basic services to speed up the recovery of the typhoon-devastated areas,” he said.

    The P1.26-billion negotiated deal with RASI was sealed in late December 2013, or a month after Manalo sent his request to US officials. Despite the DND official’s attempts to have the helicopters delivered early, the aircraft were shipped in mid-2014. So far, nine helicopters have been paid for but only two could actually fly. These two, however, have issues concerning safety and capability.

    Gazmin “partially terminated” the contract with RASI on March 25 and gave the company seven days to justify why the deal should not be fully terminated.

    The DND is yet to issue an official statement on the fate of the controversial deal that began in 2012, when Gazmin attempted to secure the approval of the Government Procurement Policy Board (GPPB) to acquire the 21 helicopters through a negotiated contract.

    The GPPB, under Executive Order 645, should approve a negotiated deal as an alternative form of procurement for projects worth P500 million and above.

    The board, through a resolution issued on October 25, 2012, only approved negotiated deals for the procurement of 10 attack helicopters and three naval helicopters. The same resolution affirmed the GPPB’s earlier decision dismissing the request of the DND to acquire the 21 Hueys through negotiation.

    Last week, Budget Secretary Florencio Abad said he will look into the details of the GPPB deliberations concerning the Hueys.

    Abad heads the GPPB, the highest policy-making body in government procurement as mandated by Republic Act (RA) 9184 or the Government Procurement Reform Act and Executive Order (EO) 645.

    DND insiders said officials may have violated RA 9184 and EO 645 when they insisted on acquiring the helicopters despite repeated warnings by the GPPB in 2012.

    A source of The Manila Times at DND claimed that the officials involved in the procurement of the helicopters were reviewing taped SBAC deliberations on the deal that may be subpoenaed by the lawmakers once congressional inquiry into the controversy is launched before the end of April.

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    15 Comments

    1. Vilma Almario on

      kilalang kilala ko si Fernando Manalo – marami kayong malalaman sa akin. Hunger in Power and distributing circular to homeowners association where he is now living with DND logo. Many cars are parking in front of his house now i have not seen those cars and sundo at hatid ng government car from his house to his DND office. MORE MORE MORE he should be fired off from the DND office and strip off his pension from the peoples money. Search HLURB dockets where Gazmin – Binay – office of the President directing HLURB na naging kawawa mga Board Members na gusto niyang patalsikin at siya ang mamuno kasi good governance group daw sila. Kinasuhan nga siya ng isang homeowner ng perjury pero siya iyong sinungaling No 1 sinungaling pinaikot and when confronted let me see and read it. More on me about Manalo. Even Purisima and Ombusman Morales copy furnished sa homeowners circular na di naman nakatira dito. Please hide my identity for my protection.

    2. Nakakatuwa ang mga comments. Pasakayin ang mga bumili nyan. Pag hindi sila takot mag crash, baka ok yan na copters?

    3. Penoy, Voltaire, Florencio, Proceso and other Bunch of Yellow Crookies: Hey, Pedro, Juan and Petra! Come here, try and sample our famous delicacy political mantra “TOO WIDE na DAAN”. Our well-paved road of avenue to ransack your hard earned taxpayers moolah.

      White Kano: Hey you, Brownies, I smell a rat with this “Too Wide” thing Daan stuff you guys are rapping on?

      Bunch of Yellow Crookies: None of your biznez, but we’ll get you if we need help from this bully Dragon encroaching in our waters…

      The rest of Pedro, Juan, and Petra’s groupies: Aray ko po jozkoh, sakit ng tiyan ko sa gutom, saket ng olo sa mga prublima alaw-alaw, “Asan ba ang ipinagyayabang na ENCLOSEVE BROTH???? (sa tindi ng gutom ni juan eh wrong spelling na at okay lang kahit sabaw na lang, ilagay na lang sa plastic at inclusive na lang ang malamig na kanin), ok na, makakaraos na, at least bukas na lang ang pruprublimahin…,

    4. so, ito pala ang mga helicopter na ipinangako ni pnoy isang araw bago manalasa ang bagyong yolanda..akala siguro niya na ang pagbili ng helicopter ay para lang bibili ng appliances na puede ng ideliver agad with in a day…

    5. Its a little unfair to just say the military officials are corrupt, its every peron who is in a position to get paid off for anything. Its how it has always worked in the philippines & so seing as they know that when they get into a position that allows them to make millions very quickly they want to take it. They actually think its their right & see nothing wrong with it.
      Just recently cardinal tagle said government officials please dont steal, well i cant stop laughing. Do you think they dont know they shouldnt steal, do you think they will give even a second of thought about not stealing, as i just said they think its their right to steal this money as all before them stole their share & so now its their turn. They will all say let the next lot of officials stop stealing, dont put us in that position. We need the money.

    6. apolonio reyes on

      If this 21 1H-UH HELICOPTER DEAL happened in the watch of LKY of Singapore, LKY will call the DND Minister and his Asec. and tell them ” TO DO IT OR I WILL DO IT FOR YOU “, Kuha mo Kuyang VoltaireG at FernandoM? I DON’T MEAN THAT YOU TWO SHOOT YOURSELF IN THE HEART LIKE WHAT GENERAL REYES DID IN FRONT OF THE TOMB OF HIS PARENTS, MGA SIRS PWEDE NA SA SINTIDO NA LANG, SIRS V AT F, JOKE LANG SIRS? . “A PMAYER DOES NOT CHEAT, DOES NOT LIE OR BOTH ” A PMA Supt once said, TAMA BA SIR V AT SIR F? KUHA NYO SIRS PARA DI NA KAYO PAMARISAN NG IBA, DI BA SIR Pnoy?

    7. Very ambitious and successful ang corruption sa Military natin. They work like a precision clock. Very conscious of every detail to keep their scam from public eye. But, many times they fail. Ang lalaki ng amount, by the billions ang iba. Hayop kayong mga military. That’s why I do not favor the military from committing a takeover in our civilian government in spite of corruption. These military men are one of its kind in the world. They are so corrupt.

      • my high school classmate told me a long time ago that the pma is the best business school in the country. they can make money out of nothing. mukhang walang pinagkaiba sa ibang admin. how sad.

    8. Allan Anthony Villar on

      Is Fernando Manalo related to the Manalos of INC? Is Fernando Manalo an INC member?

    9. Alam po ito lahat ni “Joey”. And these are just icing on the cake…
      Again, if walang order to STAND DOWN ang COA at BIR, simpleng lifestyle check Lang ang katapat ng mga MAGNANAKAW at LAPASTANGAN government servant na si Velez at Manalo. And their co-star, “Jo M”

    10. To M.Times: try to talk and secure from the PAF and Marines, the number of times they were compelled by Manalo to accept items & materials that were IN DIRECT contradiction to their tech. specifications and requirements.
      Ask DND legal dept.and BAC itself how many times they were made to “look the other way” during actual biddings

    11. And this is the same administration who is running after the husband of Mrs. Arroyo who acted as middle-man for the 2 helicopters which were allegedly refurbished and purchased by the PNP. Last information the 2 are still flying. This is another example of how hypocrites this administration is.

    12. After all, when there’s smoke there is fire. Good that there is an incoming investigation on this matter otherwise another two billions of taxpayers money runs into the river of corruption. Transparency at its best in this time of tuwid na daan.