ON May 27 there was a reported diarrhea outbreak at the New Bilibid Prison (NBP), which resulted in the hospitalization of an undetermined number of inmates. Without any basis, the officers of the Bureau of Corrections (BuCor) and Justice Secretary Vitaliano N. Aguirre II immediately blamed Mang Kiko Catering Services Inc. for the incident.
Suspecting foul play, Mang Kiko retained my law firm for legal advise/representation and to assist in uncovering the irregularities in the bidding for catering services and corruption in BuCor. What we uncovered, albeit shocking, was not a surprise. The corruption and irregularities in BuCor has been reported by media in connection with the drug trade inside. But what should also be investigated is the rigging of bids in BuCor, the disgusting and inhuman living conditions of the inmates, the contaminated water supply from ancient corroded water pipes, affecting inmates close to 30,000 at the NBP in Muntinlupa.
I am compelled to share in this column the truth about Mang Kiko as there is a public interest involved here.
Food served by Mang Kiko could not have been the cause of the diarrhea outbreak. Three tests were conducted by the City Health Office of Muntinlupa, under the supervision of the Department of Health on May 29, May 30 and June 2. The result in water sampling for bacteriological analysis showed that Mang Kiko passed all three tests. The timing of the diarrhea outbreak is actually very suspicious. BuCor’s recent bidding for catering services were marred with irregularities. There is an apparent attempt to favor a new caterer who cannot even satisfy the minimum requirements of Republic Act (RA) 9184 (The Government Procurement Reform Act). Blaming Mang Kiko for the diarrhea outbreak appears to be part of a vicious and concerted effort to destroy the good name and reputation of Mang Kiko, to ensure that it will be blacklisted as food caterer, and to bring in a favored caterer in BuCor in complete disregard of the provisions of RA 9184.
It is important for the public to know the events preceding the diarrhea outbreak.
As far back as last year, there were public biddings held by BuCor for the catering services in the penal colonies of Leyte, Davao, Zamboanga and Palawan for 2017. Mang Kiko won those public biddings. To date, Director General Benjamin C. de los Santos, head of BuCor, refuses to act on the notices of award and contracts due to Mang Kiko without any legal or factual justification whatsoever. Mang Kiko requested for the release of said notices of award and contracts, but de los Santos ignored Mang Kiko’s request.
There was a scheduled bidding last May 8 at the NBP. Mang Kiko was ready to join the bidding. Without any clear basis, the Bids and Awards Committee (BAC) of BuCor cancelled the bidding in the afternoon of May 5, in clear violation of Section 22.5.2 of the IRR of RA 9184. Mang Kiko complained about this cancellation, but the BAC insisted on its decision.
Mang Kiko was notified on May 11 that there is a blacklisting procedure against it. De los Santos claimed Mang Kiko breached its contract with BuCor in January 2017 because Mang Kiko allegedly substituted a pork viand for a scheduled beef viand and it allegedly did not present its food for prior inspection. Mang Kiko answered right away the false accusations against it, and BuCor issued a certification on April 6 which confirmed that Mang Kiko’s catering service during the alleged period of the “breach” was found to be “very satisfactory”. BuCor even proceeded to engage Mang Kiko’s catering services for the second quarter of 2017. Mang Kiko complained about this baseless blacklisting procedure against it, but de los Santos ignored Mang Kiko.
This blacklisting procedure was allegedly instituted because of a complaint filed against Mang Kiko. Mang Kiko on May 16 asked de los Santos for a copy of the complaint against Mang Kiko which was said to be the basis of the blacklisting procedure. Up to this time, de los Santos refused to give Mang Kiko a copy of said complaint.
- In the meantime, left with no other recourse, Mang Kiko sent a letter to President Duterte dated May 15 informing him of the irregularities in BuCor and furnishing him all the documentary evidence of said irregularities. Mang Kiko is not aware if the letter has reached the President.
- Without resolving any past legal issues relating to the May 8 bidding, as well as the blacklisting procedure, the BAC of BuCor called for another bidding last May 18.
- In complete disregard of the RA 9184, the BAC of BuCor showed partiality in favor of another bidder during the bidding held on May 18. At the onset, representatives of Mang Kiko were told that they cannot give any comments or observations about the bidding process nor the bidding documents of the other bidders. The BAC departed from the established protocol of opening and reviewing first the technical and eligibility documents in order to ascertain the bidders’ qualifications, before opening the financial documents. The BAC opened the financial documents without prequalifying the bidders. In the end, the BAC, headed by Dr. Cynthia Andrada, considered the bid of the bidder who failed to comply with the eligibility requirements. This said bidder failed to meet the requirement in Section 23.4.1.3 of the IRR of RA 9184 which stated that a bidder for services must have completed a single contract that is at least 50 percent of the approved budget contract (single largest completed contract requirement or SLCC). Since Mang Kiko was the only qualified bidder that satisfied all the requirements, Mang Kiko vehemently objected to the irregularities during the May 18 bidding.
- Instead of considering Mang Kiko as the winning bidder during the May 18 bidding, Director de los Santos, on May 24, declared a failure of bidding relating to the May 18 bidding. Mang Kiko was shocked to learn that de los Santos’s basis for declaring such failure of bidding was that there was supposedly “prima facie evidence of collusion that tends to restrict, suppress, or nullify competition”. The declaration of de los Santos is anchored on the reservation clause (Section 41, Rules and Regulations Implementing RA 9184, as amended). However, it is long-standing principle of the Government Procurement Policy Board (GPPB) that “when the HOPE exercises its power under the Reservation Clause, he must be able to clearly show the existence of the ground/s relied upon. Moreover, the same is not without any sanction if exercised capriciously” (GPPB NPM 141-2015). There was no showing of collusion during the May 18 bidding and there certainly was no evidence to substantiate this malicious allegation of collusion. Aside from being patently untruthful, de los Santos’s declaration of collusion is so bare and sweeping that it is no doubt capricious and whimsical. The fact is that Mang Kiko satisfied all the technical and eligibility requirements during the May 18 bidding and it should have been declared as the winning bidder. Further, de los Santos unfairly concluded that since Mang Kiko has been catering for BuCor for a long time, it was the only one who could meet the SLCC requirement. Obviously, he is now “setting up” the stage to lower the single largest completed contract requirement from 50 percent to 25 percent so that the favored bidder can qualify. Again, Mang Kiko objected to de los Santos’ wrong declaration of failure of bidding.
- Mang Kiko has sent several letters asking Secretary Aguirre to immediately investigate and supervise closely the bidding process in BuCor. In a live interview, the Secretary recently assured Mang Kiko that it will conduct a thorough investigation into claims of Mang Kiko of irregularities.
Mang Kiko has been providing catering services to the inmates of NBP for the past 11 years and record will bear out that there has never been any incident of food poisoning associated with the food served by Mang Kiko. Mang Kiko follows the strictest food-safety policies and highest food quality standards, employs sanitation guidelines for food handlers and for physical processing operation of food to ensure safe, nutritious and quality products. With an efficient catering staff of over 200, it has maintained highly competent food operations managers, food technologists, nutritionists and culinary specialists, all with solid industry experience.
This story is not unique to Mang Kiko. Similar instances have occurred when winning and qualified bidders are not awarded the contract simply because they are incorruptible and do not want to give the 15-percent to 30-percent kickback. Bidding rules have been arbitrarily changed to favor a fraternity brod, relative, classmate, dummy company.
In the case of Mang Kiko, we request that Secretary Aguirre finally clean up the anomalies/irregularities in the BuCor. He showed his political will in cleaning up the Bureau of Immigration, even if the persons of interest are Lex Stallioni fraternity brothers. He should show the same determination with the BuCor (the principal actors being his Lex Stallioni brothers, as well). And, it is time that RA 9184 (the Government Procurement Reform Act) be revisited. We call on the Senate Blue Ribbon Committee. This is one instance where “investigation in aid of legislation” (not election) may actually be a good use of government resources and people’s time.