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Malampaya deal: China entry in gas field feared

Malampaya deal: China entry in gas field feared

by | Apr 11, 2023 | Gotcha

PNA photo of Malampaya gas field

GOTCHA

written on November 12, 2021

 

“With Dennis Uy now in Malampaya gas field, can China be far behind?” That remark by Filipino-American lawyer Rodel Rodis illustrates the bully neighbor’s threats to Philippine energy security.

Malampaya in offshore Palawan supplies one-fourth of Luzon’s electricity. The Davao City tycoon recently bought 90 percent of its operations via two shell companies. Both are greenhorns in exploration and extraction. Rodis with two others have charged Uy, his Udenna Corp., Energy Secretary Alfonso Cusi and fellow officials with graft in the alleged “sweetheart deal.” Impleaded as well are oil giants Chevron and Shell for selling to Uy without government’s prior consent. Udenna denies any wrongdoing.

Underlying the criminal complaint is the fear that Uy will bring in a partner worrisome to Filipinos: China National Offshore Oil Corp.

CNOOC earlier partnered with Uy for a liquified natural gas terminal. It is lusting for the Recto Bank gas field less than a hundred kilometers from Malampaya.

Lying within the Philippines’ 200-mile exclusive economic zone, Recto Bank is believed to contain thrice more gas than Malampaya. China gunboats illegally surround the Bank. But CNOOC cannot just barge in to siphon off the gas. That would fire up Philippine and international outrage, like the resistance to CNOOC’s 2014 attempt to plant a giant oil rig in Vietnam’s Paracel Isles.

Malampaya, in particular its 500-kilometer gas pipeline to mainland Luzon, “is inextricably linked” to extraction from Recto or Reed Bank, says former Supreme Court justice Antonio Carpio. “Whoever owns the Malampaya gas pipeline has a leg up in the commercialization of the Recto Bank gas since the same pipeline will be used to deliver gas to Batangas.”

Manila’s contracted Recto Bank operator is Forum Energy. It has been unable to mine. In the past decade Chinese gunboats have rammed, machine-gunned and chased away Filipino survey vessels. Beijing illegally claims the entire South China Sea contrary to a 2016 international arbitral ruling.

In last month’s hearing of the Dept. of Energy’s 2022 budget, senators pointed up China’s play for Malampaya. Citing threat to national patrimony, Risa Hontiveros said the DOE must thoroughly review Udenna’s capabilities. Sherwin Gatchalian cautioned Cusi against a “midnight deal” of automatically extending the Malampaya service contract beyond expiration in December 2024. Despite Udenna’s entry, new public bidding must be held for service contractors to siphon remaining gas and oil beneath it, and “explore near-wells,” he explained Saturday in Sapol-dwIZ.

Petroleum geologist Eduardo Mañalac expects Udenna to partially sell to a company like CNOOC. “Taking over the rig personnel is not enough,” says the former president of Philippine National Oil Company and energy undersecretary. “Without any management expertise or industry contacts, it will need an expert partner.” Mañalac testified against Udenna’s buyout of Shell and Chevron before Gatchalian’s Senate energy committee.

Yesterday eight business groups called for continuing legislative inquiries in light of threats to energy and national security. Without naming Udenna, they said the “acquirer” would likely get operating partners since it “lacks expertise” and capital. “Government should scrutinize the buyer’s financial and technical capabilities and interests, and reserve, enforce and exercise its rights to block and invalidate transfers of shares and control disadvantageous to the Filipino people.” That was by Energy Lawyers Association, Financial Executives Institute, Filipina CEO Circle, Integrity Initiative Inc., Investment Houses Association, Makati Business Club, Philippine Women’s Economic Network and Women’s Business Council.

Business advisor Accuretti Systems analyzed in October 2020: “Dito Not Only a Telco Play but May also be a Beneficiary of South China Sea Exploration Resumption.” It referred to Uy’s entry into telecoms via Dito Telecommunity with state-owned China Telecom Corp. The newbie’s privilege to set up cell sites inside military camps has spurred fears of cyber-spying and sabotage. “China is not keen on giving up Recto Bank without participation in the exploration,” Accuretti said. “To solve the Chinese dilemma, it was proposed that Chinese state-owned companies be brought on board as partner in the Recto Bank exploration… Dennis Uy has been successful in bringing in the Chinese, particularly CNOOC.” In May 2019 CNOOC, PNOC and Uy’s Phoenix Petroleum agreed to engage in LNG and “future energy projects.”

China coastguards escort maritime militia trawlers to poach fish in the West Philippine Sea. Fearful of being shot and rammed, Filipino fishers are forced to shorelines, resulting in dwindled catch and high retail prices. Consumers buy imported galunggong, mackerel and sardines from China stolen from Philippine waters. CNOOC’s looming entry in Malampaya and Recto Bank has been likened to that irony. China will mine and sell Philippine gas to Filipinos at high rates.

*      *      *

Udenna says:

“No law requir(es) approval of transfer of shares of companies that have interest in Malampaya. Therefore, no party has the legal ability to rescind the Chevron and Shell transactions… (which) underwent strict bidding processes. The share sales were aboveboard and legal and pass[ed] thorough scrutiny by Philippine regulators, international lenders and the said private multinationals involved.”

Cusi says:

“The actions taken by the government in relation to the private transaction between Chevron, a multinational corporation, and Udenna are proper, legal and in furtherance of the best interests of the government. The decision taken regarding the exercise of the right to match should be taken against the backdrop of the restrictions imposed by various regulations on PNOC-EC as a government-owned and -controlled corporation, such as RA 9184 (Procurement Law) and RA 10149 (the GOCC Governance Law). In addition, the pandemic’s strain on government resources and allowed period under the Joint Operating Agreement (to exercise the right to match) were significant factors that limited the options, and ultimately prevented it from exercising its right to match.”

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

If united, Opposition can gun for 51% majority

If united, Opposition can gun for 51% majority

by | Apr 11, 2023 | Gotcha

Wikipedia photos of Ping Lacson, Isko Moreno, Leni Robredo, and Manny Pacquiao (left-right)

GOTCHA

written on November 10, 2021

 

Their own voter-preference surveys show it. The combined ratings of Ping Lacson, Isko Moreno, Manny Pacquiao and Leni Robredo is about 42 percent.

Most voters have made up their minds for president in May 2022. Less than 18 percent remains undecided, but weighing two candidates.

The highest rater of the four has 20 percent, at best. In the unlikely chance that one of the four gets all the undecided votes, s/he would still lose. The three others will split the votes of the Opposition. None of them will make it. The administration frontrunner will win by wide plurality.

The only way for an Opposition victory is to unite. And the time for that is now, when they still have options. By next week the door will close. By next month, they would be too far gone to give way to one among them. They would have recruited campaigners on the ground and in social media, firmed up support from local leaders and spent much personal savings and early contributions.

Official campaign period starts February. At that point spending momentum will drive the candidates. More than half of campaign spending is on media and outdoor advertising; transportation, food, billeting for barnstorming and staff salaries. The balance goes to precinct poll watching, anti-cheating and legal services on Election Day.

By then, the four would have gone their separate ways to sure defeat. They will be remembered in history as the Fantasizing Four.

But if the four unite and convince at least half of the undecided, then the Opposition can win. And that would be by at least 51-percent majority. Their statisticians can factor in the trends of turnouts, no-shows due to vote buying and terrorism, command votes and early absentee ballots.

The country needs a majority president. We have not had one since the 1986 snap presidential election.

Election 2022 has been likened to the first presidential balloting after the war. Last year’s pandemic lockdowns shrank the GDP to minus 9.5 percent. Twenty-seven million lost their livelihoods. Three-and-a-half million families still suffer hunger. And as the invader 80 years ago plundered the country’s food and resources for the War machinery, today’s Filipino collaborators are surrendering the nation’s wealth to a new foreign aggressor. The people need a leader to rise from the ashes.

A majority president will have the political capital for major reforms. Philippine patrimonial assets handed over to cronies need to be recovered. Plunderers must be prosecuted. Vigilante murders must be stopped. Partisans inserted in the judiciary and constitutional commissions need neutralizing. Thieving political dynasties must be disbanded. Pandemic response should shift from brute force and vitriol to science-based solutions and mass communication. The Constitution can be improved.

Separate internal focused-group discussions of the four Opposition parties elicit similar responses. Voters want a president who is matalino, malinis and kaisa natin. The highest leader must have vision, courage to shun temptation and fire the corrupt around him/her and be one with the people.

Ping, Isko, Manny and Leni possess those traits. Certain urgent programs can be their bases of unity. Higher budgets for nutrition and education will physically and mentally strengthen the youth – no more revision of history. Restoration of decency will revitalize society – no more cussing of God, which only brings misfortune and calamities. Non-negotiable is the defense of Philippine territory and sovereign rights in the West Philippine Sea. Whoever emerges as the common choice, the three can monitor for compliance.

Unifying requires sacrifice. Salvador “Doy“ Laurel gave up his presidential ambition and hoisted Cory Aquino for president against the dictator Ferdinand Marcos in 1986. He heeded the counsel of Jaime Cardinal Sin and Doña Aurora Aquino, mother of slain democracy icon Ninoy Aquino. It wasn’t an easy decision for sure; his core group was livid yet he bore it. Doy is now etched in history as the fulcrum who made Cory rise and Marcos fall.

There may be no one to counsel Ping, Isko, Manny and Leni today. All we can depend on is their conscience and love of country.

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Uy’s $100 Malampaya firm now makes $1.15 M a day

Uy’s $100 Malampaya firm now makes $1.15 M a day

by | Apr 11, 2023 | Gotcha

PNA photo of Malampaya gas field

GOTCHA

written on November 5, 2021

 

Dennis Uy took over Malampaya gas field via a company with $100 capital. It now earns the Davao City businessman $1.15 million a day. Another Uy firm earlier entered Malampaya and also makes $1.15 million a day. The combined daily $2.3 million should be going to the government, had energy officials done their duty.

Those are the crux of a graft complaint against Energy Secretary Alfonso Cusi and Uy. Filed with the Ombudsman Oct. 18, the rap alleges that:

• Uy’s Malampaya Energy and UC Malampaya are financially, technically and legally unqualified – yet given unwarranted advantage.

• Cusi “grossly, inexcusably neglected” government’s right to match Uy’s offers to buy out Shell and Chevron’s 90-percent interest.

• “Conspiracy” among Cusi, other officials, Uy, Shell and Chevron injured the government.

Complainants are geologist Balgamel Domingo and Filipino-American lawyers Loida Nicolas Lewis and Rodel Rodis.

Udenna Corp., chaired by Uy and parent of the two firms, said Tuesday, “UC Malampaya is qualified to be the shareholder of the Chevron company, and in the future to become the shareholder of the existing operator via Malampaya Energy XP. We were awarded because of the depth of our understanding of the business – how it should be managed and how it can be rejuvenated.”

Cusi texted Gotcha: “Actions taken by the government [on] the private transaction between Chevron, a multinational corporation, and Udenna are proper, legal and in furtherance of the best interests of the government.” The Philippine National Oil Company-Exploration Corp., which Cusi chairs, was constrained by “restrictions imposed by… the Procurement Law and GOCC Governance Law… and the pandemic’s strain on government resources and allowed period under the Joint Operating Agreement (JOA) to exercise the right to match.”

Malampaya offshore gas field in northwest Palawan is the Philippines’ primary petroleum asset, says former PNOC president-CEO and energy undersecretary Eduardo Mañalac. Pumping gas to five power plants in Batangas, it supplies one-fourth of Luzon’s electricity. Operators Shell and Chevron each had 45-percent interest; PNOC-EC has ten. Their JOA will expire in 2024 although the well can be productive at least three more years. The two foreign giants repeatedly had asked the Dept. of Energy for extension till 2039; Shell sought renegotiations on Sep. 3, 2020.

Udenna subsidiary Malampaya Energy XP Pte Ltd. was registered in Singapore on Apr. 7, 2021. Paid-up capital was $100 (P5,000), Senator Sherwin Gatchalian cited the island-state’s Accounting and Corporate Regulatory Authority.

On May 20, 2021 Shell Petroleum NV announced the sale of its 45 percent to Malampaya Energy for $460 million. “To be completed by end-2021, it would be retroactively effective Jan. 1, 2021,” Shell said. “Capitalization of this company is only P5,000,” Gatchalian grilled Cusi in a July hearing of his Senate committee on energy.

Cusi doubted the figures, saying, “No, I do not think this is the capital, Mr. Chairman. I have to check this information that is being presented. Because definitely, with P5,000, they will not be allowed to borrow billions of pesos to fund the transaction.”

Gatchalian countered: “If we will be evaluating the buyer… the capitalization is P5,000. Obviously, this is a shell company, correct? And just like the Chevron deal, there is a parent company that will shoulder all the expenses.”

Dennis Uy took over Malampaya gas field via a company with $100 capital. It now earns the Davao City businessman $1.15 million a day. Another Uy firm earlier entered Malampaya and also makes $1.15 million a day. The combined daily $2.3 million should be going to the government, had energy officials done their duty.

Those are the crux of a graft complaint against Energy Secretary Alfonso Cusi and Uy. Filed with the Ombudsman Oct. 18, the rap alleges that:

• Uy’s Malampaya Energy and UC Malampaya are financially, technically and legally unqualified – yet given unwarranted advantage.

• Cusi “grossly, inexcusably neglected” government’s right to match Uy’s offers to buy out Shell and Chevron’s 90-percent interest.

• “Conspiracy” among Cusi, other officials, Uy, Shell and Chevron injured the government.

Complainants are geologist Balgamel Domingo and Filipino-American lawyers Loida Nicolas Lewis and Rodel Rodis.

Udenna Corp., chaired by Uy and parent of the two firms, said Tuesday, “UC Malampaya is qualified to be the shareholder of the Chevron company, and in the future to become the shareholder of the existing operator via Malampaya Energy XP. We were awarded because of the depth of our understanding of the business – how it should be managed and how it can be rejuvenated.”

Cusi texted Gotcha: “Actions taken by the government [on] the private transaction between Chevron, a multinational corporation, and Udenna are proper, legal and in furtherance of the best interests of the government.” The Philippine National Oil Company-Exploration Corp., which Cusi chairs, was constrained by “restrictions imposed by… the Procurement Law and GOCC Governance Law… and the pandemic’s strain on government resources and allowed period under the Joint Operating Agreement (JOA) to exercise the right to match.”

Malampaya offshore gas field in northwest Palawan is the Philippines’ primary petroleum asset, says former PNOC president-CEO and energy undersecretary Eduardo Mañalac. Pumping gas to five power plants in Batangas, it supplies one-fourth of Luzon’s electricity. Operators Shell and Chevron each had 45-percent interest; PNOC-EC has ten. Their JOA will expire in 2024 although the well can be productive at least three more years. The two foreign giants repeatedly had asked the Dept. of Energy for extension till 2039; Shell sought renegotiations on Sep. 3, 2020.

Udenna subsidiary Malampaya Energy XP Pte Ltd. was registered in Singapore on Apr. 7, 2021. Paid-up capital was $100 (P5,000), Senator Sherwin Gatchalian cited the island-state’s Accounting and Corporate Regulatory Authority.

On May 20, 2021 Shell Petroleum NV announced the sale of its 45 percent to Malampaya Energy for $460 million. “To be completed by end-2021, it would be retroactively effective Jan. 1, 2021,” Shell said. “Capitalization of this company is only P5,000,” Gatchalian grilled Cusi in a July hearing of his Senate committee on energy.

Cusi doubted the figures, saying, “No, I do not think this is the capital, Mr. Chairman. I have to check this information that is being presented. Because definitely, with P5,000, they will not be allowed to borrow billions of pesos to fund the transaction.”

Gatchalian countered: “If we will be evaluating the buyer… the capitalization is P5,000. Obviously, this is a shell company, correct? And just like the Chevron deal, there is a parent company that will shoulder all the expenses.”

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

6 ways to secure electronic voting

6 ways to secure electronic voting

by | Apr 11, 2023 | Gotcha

PNA photo of vote counting machine testing

GOTCHA

written on October 29, 2021

 

Fourteen years since passage, the 2007 Automated Election System Law has no implementing rules and regulations. The Comelec only issued resolutions for balloting in 2010, 2013, 2016 and 2019.

The resolutions were disparate, specific to exigencies. Not a few were contradictory stopgaps. Absent were experts’ inputs from other agencies and the public that the Administrative Code requires. Mistakes were inevitable, some even breaking the very AES Law.

Examples: In April 2016 Comelec had to replace a two-month-old resolution. That was after the Supreme Court ordered it to enable the vote verification feature of the counting machines. In 2010 Comelec deactivated the digital signature system of precinct inspectors. It was a direct breach of the law’s section on authenticating precinct results for electronic transmission to canvassing centers.

Also in 2016 Comelec forbade cameras, cellphones and other image capturing devices inside precincts. That contravened the provision allowing any person to view and photograph election returns and certificates of canvass. Partially correcting itself in 2019, Comelec allowed poll watchers to take pictures of proceedings and incidents during machine testing and sealing, vote counting, transmission and printing of precinct returns.

Two election watchdogs pointed out these issues recently to Comelec commissioners. With only six months till Election Day, it may be impossible to craft IRRs. The Network for Justice and Compassion (NetJC) and the Tagapagtanggol ng Watawat Inc. (TNWI) proposed six ways to make Election 2022 fair, honest and transparent. One Comelec resolution can incorporate the proposals gathered from public consultations:

• Expand to all citizens, not only to poll watchers, the option to photograph election returns and certificates of canvass. The AES Law upholds such right.

• Install a virtual tally board per precinct. That will assure that the votes in the receipt – or voter verifiable paper audit trail – do not just reflect the voters’ choices but are actually counted. At present the machine only spits out the VVPAT for the voter to check that his choices were actually registered, but he cannot know if counted after dropping it into the receipt box.

• The Random Manual Audit should be done publicly immediately after polls close. RMA guidelines should be published well beforehand, and the random selection of precincts be public too. The RMA is an accuracy check of the counting machines. In 2019 one precinct per congressional district or city was chosen for audit. In Metro Manila it was done several days after the balloting. Doubts arose about where the ballots were stored and if secured at all.

• Clarify the secure communication channels to be used along with authentication and codification procedures in electronic transmission of precinct results to canvassing centers. Comelec must consider all interested watchdogs to be given access to all system logs. That can guarantee integrity and transparency of transmission up to the National Board of Canvassers and its disaster recovery sites. Section 7 of the AES Law, amended by R.A. No. 9369, requires all electronic transmissions to have secure communication channels as recommended by the Comelec Advisory Council.

• Allow teachers serving as election inspectors and canvassers to change the individual identification codes that Comelec initially assigns to them. This is like keying in a personal identification number after the bank generates a temporary one. Three hundred thousand teachers will be given the codes as digital signatures in transmitting the results. The Philippine National Public Key Infrastructure will issue the codes under agreement among the Comelec, Dept. of Education and Dept. of Information and Communication Technology.

• Prepare and publish a continuity plan in case of system breakdown or disaster. Lack of such plan at present creates a huge gap or disruption in the balloting chain. Various Comelec resolutions only provide contingencies for failure of counting machines and consolidation-canvassing system. But there is none for the transparency server, national canvassing servers and other processing servers. Section 13 of the law states: “The AES shall be so designed to include a continuity plan in case of a systems breakdown or any such eventuality which shall result in the delay, obstruction or non-performance of the electoral process.”

NetJC trustee Atty. Ronaldo Reyes and TNWI trustees Arnel Victor Valeña and Marlon Anthony Tonson sent the six proposals last Oct. 1. Addressees: Comelec chairman Sheriff Abas and commissioners Rowena Guanzon, Socorro Inting, Marlon Casquejo, Antonio Kho Jr. and Aimee Ferolino.

Invited by Senator Risa Hontiveros to the Comelec’s 2022 budget hearing, they held initial discussions on Oct. 19.

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Manchurian Candidates imperil Phl sea patrols

Manchurian Candidates imperil Phl sea patrols

by | Apr 11, 2023 | Gotcha

PNA photo of Philippine map

GOTCHA

written on October 27, 2021

 

Air and sea patrols secure the vast Philippine waters. Filipino fishermen, merchants and surveyors need their protection.

China aggresses such deterrents. In February 2020, a Chinese warship aimed its gun control director at a Philippine Navy patrol near Malampaya gas field, 36 miles from Palawan. A control director readies all weapons to fire instantly at a pinpointed target. The Filipino sailors were unfazed.

Manchurian Candidates in Election 2022 scorn the patrols. Parroting Communist China, the collaborators propagandize that any Filipino defense buildup incites war. Supposedly, the jets and fastcraft will be crushed within days of battle, so why waste money. If elected they will deprive Filipino flyboys and sailors of equipment and supplies. China can then complete its occupation of the West Philippine Sea.

Beijing mocks Manila’s diplomatic calls to leave the WPS. Two hundred-forty Chinese militia trawlers at first swarmed Julian Felipe (Whitsun) Reef in March-May, then spread out to the Kalayaan Isles and Recto Bank. Reinforced by a hundred more, they each poached 12,000 kilos of fish a day till August. Foreign Secretary Teddy Locsin fired off 153 protests, nearly one a day. Satellite images show 30 trawlers till today at Del Pilar (Iroquois) Reef, 150 miles off Palawan. All are within the Philippines’ 200-mile exclusive economic zone.

Chinese Navy and Coast Guard gunboats escort the fish thieves. President Rodrigo Duterte’s actions embolden them. He set aside the 2016 Hague ruling against China’s trespass in Philippine EEZ. He verbally agreed with President Xi Jinping for Chinese to fish there, no limits on area, duration and tonnage. He withdrew the Philippine military from joint patrols and drills with allies.

The People’s Liberation Army-Navy reports directly to the Chinese Communist Party’s Central Military Commission. So do the China Coast Guard and the People’s Armed Forces Maritime Militia. As CCP general-secretary, Xi Jinping heads the CMC.

China’s more than 500 “civilian” Coast Guard ships are equipped with cannons. Fifty have missiles. Two are extra-large, at 12,000-ton displacement, dwarfing the 8,000-ton destroyers of Asian navies. Filipinos are shooed away from traditional fishing grounds with machine guns.

The 6,000 militia trawlers are 60-meters long, the size of two basketball courts. The CCP equips them with light arms, communications and spyware. Steel hulls are reinforced for ramming. At Recto Bank in 2019, one such steel trawler rammed an anchored wooden fishing boat, then abandoned the 26 Filipinos thrown overboard.

The largest Philippine Coast Guard and fisheries craft are 40 meters long. The PNP-Maritime Command assists with rubber boats. Chinese trespassers have the temerity to radio them to leave Philippine waters.

Still, Filipino patrols go on, assures Vice Admiral Ramil Roberto Enriquez, AFP Western Command chief. He does not expect Chinese warships to stop radio challenges and other harassments to justify their intrusion. “What we’ll do is continue reporting and continue telling the world that we do not recognize their authority over the area,” he says. “We will not stop.”

Philippine patrols are outgunned. Manchurian Candidates will disarm them further. The traitors’ loyalty is to the CCP, not to Filipino servicemen.

*      *      *

How do the presidential candidates stand on China?

Panfilo Lacson has warned about 3,000 Chinese army spies on “immersion mission” in Filipino communities and organizations. He wants alignment with world powers that are against China’s aggression.

Bongbong Marcos declared: “There are those who say that we should buy patrol boats and jets just in case we get to fight. Why would we think we will fight? That war will be over in less than a week. We’re defeated already.” He was special guest at a Chinese embassy event last week. In a 2018 Facebook post, he hails the CCP delegation that he and his mother hosted for lunch at their home.

Isko Moreno favors joint oil and gas development with China – under Philippine service contracts; that is, within Philippine laws. “What matters most to me is that the existing resources be utilized as soon as possible,” he said the other week. “Kung may langis, e di mapapamura ko ang kuryente ng mga tao.”

Manny Pacquiao finds wanting Duterte’s China policy. He says the President should toughen up like in the 2016 election campaign to gain Beijing’s respect.

Vice President Leni Robredo is open to cooperation with China on trade and investment. On the WPS, she says, “We cannot deal with them without their recognition of the arbitral ruling.”

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Correction: In Gotcha Oct. 22, 2021 (“Sleazy procurements follow a pattern”), I misstated that Pharmally Inc. “cornered P42 billion” in government procurements of pandemic supplies. From Senate investigations, the newborn shop, with presidential Chinese friend Michael Yang as financier-guarantor, bagged P12 billion in ten months. That P12 billion is 19,200 times its paid-up capital of P625,000. Apologies for any confusion.

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Sleazy procurements follow pattern/Duque explains ambulance ‘overprice’

Sleazy procurements follow pattern/Duque explains ambulance ‘overprice’

by | Apr 11, 2023 | Gotcha

PNA photo of Health Secretary Francisco Duque

GOTCHA

written on October 22, 2021

 

Scandalous government procurements follow a pattern. Deals are cooked behind closed doors, not publicly bidded. Contractors are patently favored even if financially and technically unqualified. Denials of wrongdoing are profuse. The President is dragged down in stench defending his men.

PH Trams was only two months old when awarded the Metro Rail Transit-3 maintenance in 2012, exposed here in Gotcha. Its paid-up capital was only P62,500 (the minimum required for P1-million authorized). It had no experience in rails. “Emergency” negotiations were rushed. Then it was awarded P575 million over ten months – 9,200 times its worth.

The transport department transferred the contract to two other inexperienced firms. But the same ruling party financiers were behind them. Then-president Noynoy Aquino ignored the resulting deterioration of MRT-3. His administration became so reviled. The transport secretary was indicted in 2018. The MRT-3 chief was convicted in 2020.

Pharmally Inc. was only six months old when contracted for emergency pandemic supplies starting April 2020. Its paid-up capital was only P625,000 (for P10-million authorized). Financier-guarantor was presidential Chinese friend and economic adviser Michael Yang. Prices of personal protective equipment, face masks and shields were negotiated. In ten months it cornered P42 billion – 67,200 times its worth.

Starpay was faltering when tasked to disburse more than P50 billion in “ayuda” in 2020, senators allege. With only P62,500 paid-up capital, it bagged 800,000 times its worth. It was unable to pay out P8.2 billion to more than two million needy families.

President Rodrigo Duterte’s popularity is dropping deep and fast.

*      *      *

Health Secretary Francisco Duque III replies to the points raised by Sen. Panfilo Lacson in Gotcha, 8 Oct. 2021, “P841-M Overpriced Ambulances, P2.7-B Expired Meds Unexplained.” Lacson had alleged P1-million overprice in each of 841 ambulances procured by the Dept. of Health. He deduced this by comparing the DOH purchase price with that of two local government units and the Philippine Charity Sweepstakes Office. The LGUs and PCSO had copied the DOH specs, including all the accessory equipment. Lacson also advised Duque to look into a possible procurement Mafia in DOH behind the P2.7 billion in expired, expiring and overstocked medicines year after year, same brands, same suppliers.

Duque says: “The DOH has always been open and transparent in all transactions, and remains committed to improving processes to better serve the people. It takes cognizance of any allegation of irregularities, and has always been open to inquiries and discussions to address such matters.

“On ‘overpriced’ ambulances, the DOH sets the record straight that the 839 units are within the approved budget, compliant with licensing standards set in DOH Administrative Order 2018-0001, and underwent competitive, fair bidding.

“In 2019 the DOH, through its 17 Centers for Health Development and 54 hospitals, procured Type 1 ambulances, fitted with 30 life support equipment for transporting patients in acute medical peril, for trained responders to apply immediate medical interventions.

“The implementing units procured the ambulances between P2.1 to P2.5 million each, all within the Approved Budget Contract of P2.5 million.

“In surveys conducted with some LGUs and PCSO, it was found that the ambulances bought at around P1.5 million per unit are only fitted with 10 to 12 basic equipment, meant only to transport patients in a non-immediate life-threatening condition.

“The DOH submitted to the Senate on Oct. 4, 2021 all pertinent documents on the ambulance procurement, such as bidding documents from the health facilities, Terms of Reference and policy references. These ambulances are distributed to the implementing units, indispensable in providing swift medical intervention and in saving lives.

“As to the Senate inquiry on the P2.7-billion expired, overstocked and near-expiry items flagged by the Commission on Audit, the DOH clarifies that these refer to the total inventories from 2013 to 2020.

“In 2020, the COA found about P95 million worth of expired, overstocked and near-expiry inventories. Delivery of medical services is untenably affected by the COVID-19 pandemic due to the enforced mobility restrictions and physical contact, and fear of people to go to health facilities. Some facilities experienced decreased admissions for other illnesses and low turnout of hospital confinement, resulting in the low utilization of inventory and inevitable overstocking of medicines.

“Nevertheless, we assure the public that corrective measures are being taken by our operating units such as transfer of slow-moving/idle stocks to facilities where most needed, and requests to suppliers for replacement of near-expiry items.

“In 2018 DOH established a Procurement and Supply Chain Management Team which steps away from the traditional vertical management approach in which each health program has a separate supply chain system, and which paved the way to the creation of the Supply Chain Management Service in 2019. The SCMS has significantly acted for the decline in the quantity of expired or near-expiry drugs, medicines and other health commodities.

“Even with our non-attendance in the hearings to give way to COVID-19 response related tasks, we continue to give our full support and cooperation to the Senate. We will submit data and documents they have requested, as we have been doing in the past weeks, to aid the investigations. We are one in their pursuit of truth and accountability.”

Sinovac safety efficacy and price still need clarifying

Sinovac safety efficacy and price still need clarifying

* * *

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Sinovac safety efficacy and price still need clarifying

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