Tuesday 17 May 2011

PIA Dispatch - Thursday, May 12, 2011

President Aquino streamlines gov’t procurement process

President Benigno Aquino III has expanded the government procurement process by increasing the limit of advance payments on purchase contracts in a bid to give equal opportunities to local suppliers while making sure tax coffers stay protected in case of a bad deal.

Executive Secretary Paquito N. Ochoa Jr. said on Thursday that under Memorandum Order (MO) No. 15 signed by the Chief Executive on May 9, government agencies are now allowed to make advance payments of up to 15 percent of the contract price of goods, supplies and materials purchased locally or from abroad, provided that these transactions are secured by an irrevocable letter of credit or bank guarantee.

Ochoa said MO 15 amended a provision in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184 or the Government Procurement Reform Act, which allows a 10 percent advance payment for goods supplied from overseas.

RA 9184 provided a specific and limited exceptions to the rule against advance payment as prescribed in Section 88 of the Presidential Decree (PD) No. 1445, or the Government Auditing Code. The Code generally prohibits advance payment for services not yet rendered or for supplies and materials not yet delivered under any government contract unless prior approval of the President is obtained.

“The purpose of the prohibition against advance payment is to protect the government from the possibility of not receiving goods, supplies and materials for which it has already paid. However, this problem is squarely addressed by the requirement of prior submission of an irrevocable letter of credit or bank guarantee from which the government may seek reimbursement when necessary and without complication,” Ochoa pointed out.

Ochoa said the presidential directive was based on the recommendation of the National Economic Development Authority (NEDA) to raise the allowable amount of advance payment to 15 percent from 10 percent of the contract amount.

He said the NEDA also proposed that the rule be expanded to include procurement of goods, regardless of their source, consistent with the Aquino Administration’s policy of giving equal opportunities to local businessmen.

“The limitation, which applies only to goods supplied from abroad, runs counter to the policy towards giving equal opportunities to local suppliers,” Ochoa said.

But in order to provide sufficient safeguards for the government, Ochoa said MO 15 included a provision authorizing advance payment only upon submission of an irrevocable letter of credit as an alternative to a bank guarantee.

His would mean that government agencies are given the “blanket authority” in the procurement of goods, supplies and materials as long as the supplier submits the prescribed security.

“Nonetheless, the proposed revision still fulfills the legislative purpose of protecting the government since the advance payment is secured by an irrevocable letter of credit or bank guarantee,” Ochoa said.

An irrevocable letter of credit ensures the beneficiary that if the required documents are presented and the terms and conditions in the contract are complied with, payment will be made. (PCOO)


Aquino to lead launching rites for National Greening Program in Quezon City

President Benigno Aquino III will lead the launching of the National Greening Program (NGP) on Friday in Diliman, Quezon City after issuing an order tasking the Department of Environment and Natural Resources (DENR) as the lead agency in carrying out the government’s reforestration program.

The President issued Executive Order 26 in February this year designating DENR to implement NGP. With the EO, the President effectively put order to all the reforestration efforts of the government to regain the country’s verdant past and self-sufficiency in its timber needs.

Under the NGP, the government targets to plant 1.5 billion trees covering about 1.5 million hectares of lands in public domain for six years, from 2011 to 2016. The government expects the program to double its reforestration efforts for the past 25 years.

The launching of the NGP serves as potent force for an inter-agency collaboration and stakeholders’ participation towards massive reforestration consistent with Proclamation 125 issued by President Aquino in March 2011 proclaiming 2011 as the National Year of the Forest.

The government expects people’s participation to complement reforestration efforts of the administration through the NGP. The program calls for social mobilization with the whole bureaucracy serving as the prime mover of the NGP.

Aside from the NGP launching, other activities of the President include tree planting at DENR grounds and the unveiling of the Bulwagang Ninoy Statue as well as inspection of the Ninoy Aquino Parks and Wildlife Center at the Quezon City Memorial Circle.
The wildlife park was part of the Quezon Memorial Park which was covered under Proclamation 42 issued in 1954. With the succeeding presidential issuances in the past, the park’s land area was eventually reduced.

The larger areas were allocated for the Philippine Science High School and the National Government Center, which was later divided into areas occupied by the Central Bank of the Philippines, Lung Center, Kidney Center, and Lungsod ng Kabataan (Children’s Hospital).

The Ninoy Aquino Parks and Wildlife originally covers 64.5 hectares of land but at present, it only covers 22.7 hectares.

Joining the President for Friday’s event will be Environment Secretary Ramon Paje, Agriculture Secretary Proceso Alcala, Agrarian Reform Secretary Virgilio delos Reyes, Public Works and Highway Secretary Rogelio Singson and Ms. Jacqueline Badcock, United Nations Country Representative. (PCOO)


Aquino government widens areas covered by DTI’s ‘Diskuwento Caravan’ program

The Aquino government, through the Department of Trade and Industry (DTI), launched recently the ‘Diskwento Caravan’ program offering a wide range of basic commodities to the public at very low prices to help them maximize their resources especially in time of the increasing costs of goods in the global market.

In a media briefing in Malacañang on Thursday, DTI Secretary Gregory Domingo said that at least 60 venues will be visited by the program in the coming days where consumers may avail of five to 75 percent discount on prices of goods.

“Ito pong ‘Diskwento Caravan’… inumpisahan po ito noong 2008, maliit lang na programa, gumagawa tayo ng one-day event na nag-o-offer ng mga presyo ng basic and prime commodities sa napakababang presyo,” Domingo said.

“May mga kausap tayo ditong mga kumpanya na nagbibigay ng goods na binebenta during the event at the basically factory prices… the range of discounts are from five percent to 75 percent, depending on the kind of goods, drugs having the biggest,” he added.

Domingo said that at least 60 places are expected to be visited by the program this year, much higher than the areas covered the past years. He cited President Aquino’s orders on the program’s wider coverage to benefit a much larger number of Filipinos nationwide.

“Naisip po ni President Aquino na palawakin ang programa na ito this year, kaya po from nine last year we are targeting a minimum of sixty places this year… baka po umabot pa ng 100 depende po sa budget ng DTI kung kakayanin pa,” Domingo said.

“Yung diskwento caravan natin in Makati last Monday may mga 19 thousand ang namili doon… napakarami pong tao at dinudumog po itong napaka-popular na programa. Kaya tingin natin malaki ang naitutulong nito sa taumbayan. Kaya sabi ni Presdente sa akin gawin natin mas malawak at mas madalas para marami makinabang…” Domingo stressed.

He added that the additional venues to be visited by the caravan will start within the coming weeks not only in Metro Manila but also in the provinces, including Visayas and Mindanao.

“The sixty will be launched over the next five weeks up to mid-June, so makikita ninyo po ito hindi lang sa NCR but also in the provinces where there will be a wide range of goods to be offered kasama na po ang school supplies dahil magpapasukan na po…,” Domingo said.

The program’s five to 35 thousand budget, Domingo explained, is being sourced out from the savings of the department with sales ranging from 120 thousand to 1.2 million pesos per day.

Domingo said that the ‘Diskwento Caravan’ program is open to all with a limit of 1,500 pesos per buyer. The caravan opens at 6:00 in the morning and usually lasts one to two days per venue.

On the third week of May, ‘Diskwento Caravan’ will be going to the provinces of Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Benguet, Abra, Mt. Province, Apayao, Ifugao and Kalinga.

In Metro Manila the caravan will be in Mandaluyong, Hiway 54- May 16, Manila - May 30, Pateros - May 31, Taguig - June 1, Malabon - June 3. The Diskwento Caravans will be enhanced with Jobs fair to be conducted by DOLE NCR and National Wages and Productivity Commission. (PCOO)


Palace says, DOJ is only doing its job in filing cases against law violators

The Department of Justice is only doing its job in filing graft charges against person or persons who do not follow the rule of law.

This is the reason why Malacanang is convinced that the Department of Justice (DOJ) has found probable cause to file tax evasion charges against former Budget Secretary and Social Security System (SSS) president Romulo Neri.

Deputy Presidential Spokesperson Abigail Valte said the DOJ issued a resolution approving the tax evasion case recommended by the Bureau of Internal Revenue for the failure of Neri to declare his correct income tax.

The DOJ earlier said that the tax evasion case against Neri is set to be filed at the Court of Tax Appeals, following his alleged failure to declare his income tax especially when he was a member of the board of Philex Mining Corp. from 2007 to 2010 and his director's fees at the Union Bank of the Philippines.

According to the complaint, the BIR found out that based on its computations, the former SSS chief earned P11.3 million in 2008 and P34.2 million in 2009. However, he did not declare his total income, resulting in a tax deficiency of P18.2 million, which includes interests and surcharges, the BIR said. (PCOO)