Board Thread:General Discussion/@comment-31344346-20170219141010

CORRUPTION RAISES ITS UGLY HEAD ANEW IN THE PROCUREMENT OF DEFENSE WEAPONS FOR THE PHILIPPINES

News reports are now coming out of Davao that some Israeli companies are trying to get an appointment with President Rodrigo Duterte in order to set a presentation of their products to him. The curious thing is that these companies are not even in the top echelon of Israel’s defense industry and are mostly little known companies with largely unproven products and dubious systems.

Now, they are reportedly flying to Davao to make a sales presentation of these dubious products to the President. They are actually making a fool of the President by making him a Technical Working Group and Defense Acquisition Committee rolled into one. This unethical act by these Israeli companies and their Philippine representative is a major insult to the Department of National Defense and the Armed Forces of the Philippines as it not only bypasses them and disregards their technical expertise, but also tramples upon set procedures to ensure that our soldiers who lay their lives on the line for our protection will always get the best weapons systems in the most efficient and transparent way.

The current procedure, which ensures efficiency and transparency, is for presentations to be made first at the level of the end-user, and based on the expertise and experience of the end-user operating units, the end-user’s Technical Working Groups would make their thorough evaluation of the presented weapons systems and make their informed recommendation to their superiors who will eventually elevate and refer these recommendations to the President based on the parameters recently established by the President himself, which is to go government-to-government on such deals and eliminate the participation of corrupt vendors.

This is where the plot thickens. The presentation is being spearheaded by one JOCELYN MAGCALE of JOAVI who was earlier exposed by the Tulfo brothers. In his Manila Times column last April 5, 2015, Erwin Tulfo gave the sordid details about Magcale and her involvement in shady deals in the DND and Philippine Coast Guard. His article, titled “Lady contractor seduces officials to win DND, AFP deals” is quite informative:

“Perhaps, the true to life story of a lady contractor would spice up a Senate inquiry into the massive anomalies at the Department of National Defense (DND), particularly the overspending and overpricing in its procurement deals.

“Who would have imagined that a comely young woman from Visayas working as a guest relation officer (GRO) in one of the nightclubs in Makati in the 90’s would eventually become one of the wealthiest military dealers or suppliers in the country today.

“Now in her 40’s, this contractor is said to be one of the most sought after contractor by defense and military officials because of her big offer of commissions or kickbacks on every DND project awarded to her. In addition, she has turned the officials’ sexual fantasies into reality.

“This attractive woman had dealt with the DND to supply the AFP with a wide variety of items from small arms ammunition to protective gear over the past years, amassing a fortune out of sweetheart deals.

X X X

“Using her irresistible beauty, she started closing deals by sweet-talking officials DND and AFP both in the war room and in the bedroom, as well.

“Her big break though did not come at Camp Aguinaldo but rather at the auspices of the Philippine Coast Guard (PCG) with which she transacted business in 2001.

“Again, she capitalized on her seductive beauty to captivate the heart of a high-ranking official who served her the juicy PCG contracts on silver platters.

“Insider info has it that the former Magdalena was impregnated by the official but had the baby allegedly aborted in the guise of a miscarriage for which she was taken to a hospital in E. Rodriguez Ave. in Quezon City.

“When her PCG official lover retired from the service, this lady contractor brought her business back to Camp Aguinaldo.

“The mother of two stayed in great shape such that a ranking officer of the Philippine Army got crazy about her and made her his mistress sometime in 2013.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“It was when she began cornering most of the juicy projects of the Army through negotiated or rigged biddings.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“Her Army general lover eventually retired from service, too, leaving her with the luxury of a plush subdivision in Paranaque and a fleet of lavish cars.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“She continues to transact business at the DND and AFP to this day.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“But the problem, according to some military officials, is her frequent failure to deliver the goods on time when they were badly needed in combat operations.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“Some goods, like mortars for the Army, turned out to be defective.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“There were also instances when she did not deliver goods, at all.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“I’m wondering if this contractor honestly pays her taxes and on time?”

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">The is also the recent case reported by Marlon Reyes of Inquirer last May 15, 2016 about gross anomalies involving Magcale’s JOAVI and some DBM executives in the purchase of inflatable rubber boats for the AFP in 2010. The article, titled “DBM execs face graft raps” reveals:

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“The Office of the Ombudsman has ordered the indictment for graft of six officials of the Department of Budget and Management (DBM) in connection with the allegedly fraudulent procurement of inflatable rubber boats for the military in 2010.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“Charged in the Sandiganbayan were Budget Undersecretary Evelyn Guererro, Director Lourdes Santiago, procurement management officers Julieta Lozano and Mervin Ian Tanquintic, administrative assistant Alvin John Perater and ad hoc member Lt. Malone Agudelo.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“Included as a private respondent was Anthony Hernandez of Joavi Philippines Corp., the supplier of the substandard rubber boats.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“In an e-mailed statement, Ombudsman Conchita Carpio Morales said graft investigators discovered that the purchase of the rubber boats, used as rescue vessels, violated several provisions of the government’s procurement law.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“For one, Morales said, the rubber boats did not have inflation valves, over-pressure valves and roll-up floors as specified in the procurement plan/rga”

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">http//businessinquirernet/210320/dbm-execs-face-graft-raps#ixzz48kGRegr9

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Another news report on the case said “JOAVI also allegedly “merely copied” the technical specifications of Zodiac FC470 Futura Commando Inflatable Rubber Boat manufactured by Zodiac International and exclusively distributed in the country by S.A. Phils., Inc.”

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Additional about some of Magcale’s anomalies were provided by a group of patriotic officers from the AFP:

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">“Here are some of Jo Magcale’s anomalous transactions:

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">1. 2008 - Sometime in February 2008, acting as local representative of Soltam Systems Ltd. of Israel for the supply of 29 units of 81mm Mortar tubes with ILS Package and another such contract, for unknown reasons, has caused the non-delivery of both contracted equipment resulting to the rescission of the said contracts and the eventual Blacklisting of Soltam Systems Ltd. in July of 2011.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">2. 2008 – Delivery of 30,000 rounds of Non-Compliant to Technical Specifications of 60mm and 81mm Mortar Ammunitions made by Talon Security Consulting and Trade Ltd. between April and December 2008. This delivery was rejected by SND Teodoro, and its contract terminated and blacklisted thereafter. Ms. Magcale then filed an Ombudsman case against SND Teodoro. Surprisingly, despite this irregularity committed by this company and having been blacklisted for it, from the period of February 2010 to March 2011, Talon Security Consulting and Trade Ltd., was awarded with at least eight (8) supply contracts for ammunition, most of which were participated into as a sole bidder with almost equivalent bid price as that of the project’s ABC.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">3. 2009 – Defense Secretary Gilbert Teodoro ordered anew the scrapping of the bidding process for P500-million worth of mortar ammunition. Teodoro ordered the scrapping of the bidding after the procurement committee failed to comply with the prescribed process, defense spokesman Nelson Victorino said the only qualified bidder, Talon Security Consulting and Trade Ltd., was found to have submitted false documentation. He said the awarding of contract to Talon notwithstanding the flaw would unduly favor Talon.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">4. 2011 – While there seems to be no record of an award made to either JOAVIPHILIPPINES Corp. or Talon Security Consulting and Trade Ltd., or its JV which can be found at the “Award Notices” from the PhilGEPS Website, several articles available from the internet speaks of several contract awards made regarding the supply of 100 units of 81 mm mortar with integrated logistics support. It was learned that the JV of Joavi/Talon tried to source the supply of the 81mm Mortar contract from a Bosnian Company, BNT-Tvornica Masina i Hidraulike, d.d (BNT-TMiH) and not from the Serbian Manufacturer of the M69B as originally offered during the bidding. No delivery was made and the contract was eventually terminated.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">5. 2011 – The Joint Venture partnership of JOAVIPHILIPPINES Corp. & Talon Security Consulting & Trade with Aquasports Boats & Yacht Company Ltd., was awarded with two contracts for the supply of Rigid Hull Inflatable Boats by the Office of the Civil Defense (OCD), sometime May 27, 2011 and August 16, 2011. Because of the Joint Venture’s failure to deliver its contract commitment relative to the 52 units of RHIB’s, this merited a slapping of a One (1) Year Blacklisting of the JV on January 2012.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">6. 2012 – With the blacklisting of JOAVI still in effect, from the termination of its 100mm Mortar project contract, Stone of David Tactical Equipment Company (SODTEC) was established in 2011 by Ms. Magcale. Immediately the following year, SODTEC began with its participation in the DND-AFP Procurements. Between the period of 2012 to 2013, SODTEC managed to land six (6) supply contracts. What appears to be highly irregular in the awards made is that all these contracts are awarded in the name of Stone of David Tactical Equipment Corp. and not the manufacturer. Another highly irregular in the above contract awards made is that the bid price and contract value is almost the same amount of the ABC itself with SODTEC appearing to be the lone bidder for the project.”

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Jocelyn Magcale also owns Stone of David Tactical Equipment Company (SODTEC) which tried to supply to the AFP in 2013 some 3,480 sets of Force Protection Equipment (FPE) worth Php120,435,000.00 that were eventually found to be defective (the vests failed ballistic tests) and were rejected by the Philippine Army.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">In 2015, Magcale’s Stone of David was suspended by the Government Procurement Policy Board for one (1) year for its failures in supplying 105mm munitions to the Philippine Army worth a total of Php93,600,000.00 – a pattern of failures and irregularities that has been happening to JOAVI and Magcale’s other shell companies.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">The same company -- Magcale’s Stone of David -- represented Israel Military Industries (IMI) in 2014 in the Philippine Army’s Php6.5B Shore-Based Missile System (SBMS) Project, where they tried to sell the Philippines a hogwash of a product that President Aquino, the DND and the AFP had sense enough to set aside (a polite way of rejecting, although some very corrupt AFP senior leaders tried to recommend it).

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Magcale’s product, the Extra Missile of IMI was set aside and suspended due to realizations that the missile would not only fall miserably short of the AFP’s requirements, it would also significantly increase the possibility of all-out war with China or our Asian neighbours if we ever resorted to using them. These missiles were proven to be incapable of defending the Philippines’ archipelagic territory because they had a relatively short range (only 150 km as opposed to the Philippine EEZ of 200 nautical miles or 320 km and our Westernmost claims in the West Philippine Sea which are of up to 600 km from our nearest land mass in Palawan or Bataan and Zambales) and they could not engage moving targets (for instance, all potential aggressor and threat targets in the West Philippine Sea are all moving). The Extra Missile can only hit static targets within its limited range of 150 km.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:15px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Nonetheless, Magcale moved heaven and earth to have her missile product approved, even co-opting some military and public officials particularly using her close allies in the DND and AFP. However, because of his concern for the military and what is right for the government and the country, then AFP Chief of Staff Iriberri resisted Magcale’s machinations.

<p style="box-sizing:border-box;margin-top:0px;margin-bottom:0px;font-weight:normal;font-size:15px;line-height:21px;font-family:Georgia,Times,serif;color:rgb(42,46,46);">Magcale had used numerous connections to Malacañang to get her incapable missile product approved, all to no avail. She even made a political alliance with then Vice President Jejomar Binay, with whom she and IMI officials became very close to, expecting that because of his popularity at that time (early to middle part of 2015) he would succeed President Aquino, and be beholden to her group. <ac_metadata title="Message from Kwak kwak kwak"> </ac_metadata>