Philippines to Terminate ₱1.2-billion UH-1 Chopper Deal ; Supplier failed to Deliver Sep 2014

TERMINATION NOTICE. The Department of National Defense has notified the foreign suppliers of the choppers. Photo from Philippine Air Force

 

DND moves to terminate controversial chopper deal

The defense department has sent a notice to the foreign suppliers for their failure complete the delivery of the 21 choppers on time

MANILA, Philippines – The Department of National Defense (DND) has moved to partially terminate a ₱1.2-billion chopper deal with foreign suppliers following allegations of anomalies raised by a senator.

A "Notice to Terminate" was sent on Wednesday, March 25, to the joint venture of US-based Rice Aircraft Services Inc and Canada-based Eagle Copters Ltd for failing to complete delivery of the 21 UH-1 choppers for the Philippine Air Force.

Only 8 of the 21 choppers have been delivered when it should have been completed in September 2014. The DND initially granted extensions.

"You failed to comply with the agreed schedule of requirement of the Contract Agreement which provides that the delivery should be within 180 calendar days upon opening of the Letter of Credit," the notice read.

The supplier has 7 days to respond to the DND's notice. "Failure to show cause within the provided period, either by inaction of default, shall cause the issuance of an order terminating the contract," the notice added.

Senator JV Ejercito put the chopper deal on the spotlight when he filed this month a Senate resolution seeking a probe into the chopper deal. He claimed that the project was "tailor-fitted" for a "favored bidder.

"The Senate should check if any violations were made on the procurement law in the purchase of these 21 helicopters. We have to look into this deal because P1.2 billion worth of choppers that cannot be used and have obsolete parts are disadvantageous to the AFP Modernization Program," said Ejercito, a member of the Senate committee on national defense and security.

Ejercito, in his resolution, cited reports from The Manila Times and the Manila Bulletin that uncovered alleged irregularities in the deal.

"These reports alleged that the UH-1D units that were delivered by the suppliers to the Philippine Air Force were non-compliant with the project contract's Terms of Reference. Furthermore, they have limited use due to some defects, thereby defeating the purpose of its acquisition and is a prima facie wastage of taxpayers' money," the resolution said.

The Armed Forces of the Philippines awarded the contract to the joint venture in December 2013 after 3 failed biddings. The project is part of the AFP modernization program.

The bidding process was led by a retired Air Force general Fernando Manalo, who is now the defense undersecretary for finance, munitions, installation and materiel. – with reports from Carmela Fonbuena/Rappler.com

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PBA: It's Blackwater!

Expansion team Blackwater closed out its campaign on a high note when it stunned playoff-bound Meralco, 84-72, last night in the PBA Commissioner’s Cup elimination round at the Smart Araneta Coliseum.

Import Marcus Douthit produced 27 points and 14 rebounds while center JP Erram scored a career-high 21 points, with seven rebounds and five blocks as the Elite finished their campaign with a 3-8 record.

Blackwater’s performance was obviously a marked improvement from the Philippine Cup when it failed to win in all 11 matches.

“Going into this game, regardless of being eliminated, gaining the experience and giving their (Elite players) hundred percent is part of the building process we are undergoing,” said Blackwater mentor Leo Isaac.

“Hopefully we can bring this to the next conference. We just wanted to end the second conference on a high note. We’ll enjoy the 10-day break, and then we’ll plunge back to practice on April 6.

“Maybe we can have a fresh start and new level of confidence (next conference),” added Isaac.

Reil Cervantes added 13 points off the bench since he was traded from Blackwater for Alex Nuyles.

Blackwater will have the luxury of signing an import with unlimited height for the Governors’ Cup since the team finished as one of the four-worst teams in the first two conferences.

Isaac said that while he is pleased with the performance of the 6-foot-10 Douthit, who took over from the injured Chris Charles, it is up to the management led by team owner Dioceldo Sy to decide whether to stick with the naturalized player of Gilas Pilipinas.

“Team management will meet with the coaches on Friday, by then baka may decision na,” said Isaac, who added that there is also a possibility for them to avail the Asian reinforcement.

“We have some names on our list, and if it pushes through, (we’re eyeing) a player from the Middle East na magaling siya lumaro. He played for his national team,” said Isaac, who refused to name the Asian import.

Meralco ended the elims with a 6-5 record, losing five of its final six games after a 5-0 start. The loss, however, proved meaningless for the Bolts as they had already secured a best-of-three quarterfinal duel with sister team NLEX Road Warriors.

The quarterfinals begin tomorrow at the Big Dome.

Jared Dillinger led Meralco with 15 points, Sean Anthony and Mike Cortez added 13 points apiece, while import Josh Davis had 11 and 20 boards.

Scores:

First Game

BLACKWATER 84 – Douthit 27, Erram 21, Cervantes 13, Heruela 7, Acuna 6, Bulawan 5, Gamalinda 3, Laure 2, Timberlake 0, Reyes 0, Golla 0.

MERALCO 72 – Dillinger 15, Anthony 13, Cortez 13, Davis 11, Wilson 7, Ferriols 5, Caram 3, Reyes 2, David 2, Buenafe 1, Ildefonso 0, Sena 0, Hugnatan 0, Macapagal 0.

Quarters: 26-23; 50-40; 66-46; 84-72.

Second Game

ALASKA 104 – James 29, Baguio 17, Abueva 16, Jazul 10, Hontiveros 9, Casio 5, Banchero 4, Thoss 4, Exciminiano 4, Manuel 2, Menk 2, Baclao 2, Eman 0, Dela Cruz 0.

GINEBRA 98 – Dunigan 32, Baracael 18, Aguilar 17, Tenorio 10, Urbiztondo 8, Slaughter 7, Caguioa 4, Monfort 2, Pena 0, Helterbrand 0, Ababou 0, Ellis 0.

Quarters: 29-23, 52-39, 78-69, 104-98 - Tempo

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