VMS composite image from INQUIRER file photos

MANILA, Philippines — Two former executives of the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) posted bail for four counts of graft charges filed against them by the Office of the Ombudsman in connection with a controversial P2-billion vessel monitoring system (VMS) project in 2018.

In an order by Branch 141 of the Antipolo City Regional Trial Court, former agriculture undersecretary and BFAR national director Eduardo Gongona and Demosthenes Escoto, who also served as BFAR national director, each paid a cash bond worth P360,000 on Jan. 7, 2025, a day after they were ordered arrested by the court.

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Their arraignment and pre-trial have been set on Jan. 22 and Feb. 26 at 1:30 pm.

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Looking back, a complaint was filed in 2022 by lawyer James Mier Victoriano on alleged irregularities in the procurement of VMS transreceivers for BFAR’s Integrated Marine Environment Monitoring System (IMEMS) Project Phase II. The contract was worth P2.09 billion and awarded to the British company SRT Marine Systems Solutions Ltd.

GRAPHIC: Ed Lustan/INQUIRER.net

Both Gongona and Escoto have been charged with two counts of violation of Section 3(e) of Republic Act (RA) 3019, or the Anti-Graft and Corrupt Practices Act, as well as one count each of violation of Sections 3(g) and 3(j) of the same law, for their alleged involvement in the “improper awarding” of the contract to the British company.

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Simon Tucker, chief executive officer of the solutions provider, is a co-accused, too.

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Victoriano’s complaint in 2022 asked the Ombudsman to charge Gongona, Escoto, Tucker, former agriculture assistant secretary Hansel Didulo, and SRT Marine Systems Solutions Ltd. chief financial officer Richard Hurd with violations of RA 3019, as well as the Government Procurement Reform Act.

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This, as the initial invitation to bid in 2017 for the IMEMS Project Phase II stated that the project was to be funded by the French Republic and through a loan agreement. The initial invitation to bid had an Approved Budget for the Contract (ABC) of P1.6 billion.

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Victoriano said the loan agreement required that the bidder must be either a French national or possess a joint venture agreement with a French national, and that the goods must be of French origin. However, “despite the requirement, SRT participated in the bid and was declared by DA-BFAR to be eligible and eventually won the bid.”

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Victoriano said it was clear that DA-BFAR did not comply with the conditions provided in the initial invitation to bid and would have continued with the award if not for the disapproval by the French government, which resulted in the cancellation of the loan agreement.

The procurement proceeded with the use of local funding.

Back in October 2018, BFAR conducted the last bidding with an ABC of P2.09 billion. SRT Marine Systems Solutions Ltd. was eventually awarded the contract to equip fishing vessels with VMS transceivers, which are seen to help in protecting marine resources by keeping track of commercial fishing vessels.

GRAPHIC: Ed Lustan/INQUIRER.net

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The project’s scope eventually expanded to include 5,000 VMS transceivers for commercial vessels and satellite service subscriptions, significantly increasing the government’s obligations, which was initially set at only 3,736. This made the contract “disadvantageous to the government.”

The complaints against Didulo and Hurd were dismissed for lack of evidence.

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The Ombudsman affirmed its February 2024 decision by denying in October 2024 the motions for reconsideration filed by the respondents. Escoto has already been dismissed from government service by the Ombudsman after being found guilty of grave misconduct in relation to the same transaction.fb777

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