Los principios didácticos de los procesos de enseñanza

de las Ciencias Sociales

4. Los principios didácticos de los procesos de enseñanza - aprendizaje aprendizaje

CHAPTER 4: EVALUATION OF PROCUREMENT REFORM IN THE PHILIPPINES

Progress and Problems Reported.

Procurement reform in the Philippines is already considered a success. (Thornton, 2006;

ADB, 2005; WB, 2005) Success is mostly attributed to the establishment of a legal and ADB, 2005; WB, 2005) Success is mostly attributed to the establishment of a legal and procedural framework,

procedural framework, which is considerably a which is considerably a major feat major feat in itself. Also, the in itself. Also, the PhilippinePhilippine procurement system is complying more and more with international standards (Thornton, procurement system is complying more and more with international standards (Thornton, 2006; Hoekman, 1998). OECD-DAC (2006 Agency Performance Indicators) notes the 2006; Hoekman, 1998). OECD-DAC (2006 Agency Performance Indicators) notes the Philippines' compliance rate in six key procurement areas are in the range of 49 and 79 Philippines' compliance rate in six key procurement areas are in the range of 49 and 79 per cent. The Baseline Indicators

per cent. The Baseline Indicators³⁵³⁵ assessment in 2006 also registered an improvementassessment in 2006 also registered an improvement from a rate of 67.89 per cent (2004) to 68.2 per cent. (Thornton, 2006; “BLI

from a rate of 67.89 per cent (2004) to 68.2 per cent. (Thornton, 2006; “BLI Assessment”, 2006) Another notable development is the immediate evidence of Assessment”, 2006) Another notable development is the immediate evidence of

procurement savings in the Department of Education due to procurement reforms. Unit procurement savings in the Department of Education due to procurement reforms. Unit costs of chairs and desks have decreased by 22 per cent and 77 per cent, respectively, costs of chairs and desks have decreased by 22 per cent and 77 per cent, respectively, textbook costs by 50 per cent, and classrooms by 39 per cent. (Thornton, 2006)

textbook costs by 50 per cent, and classrooms by 39 per cent. (Thornton, 2006)

In the midst of all these, problems were also starting to show up. The role of CSOs in In the midst of all these, problems were also starting to show up. The role of CSOs in

35 The Baseline IThe Baseline Indicators (BLIndicators (BLI) developed by OECD-DA) developed by OECD-DAC is the agreed internatC is the agreed international standard for ional standard for assessing national procurement systems. Procurement systems are assessed according to

assessing national procurement systems. Procurement systems are assessed according to four pillars: 1)four pillars: 1) the existing legal framework that

the existing legal framework that regulates procurement in the regulates procurement in the country, 2) the institutional architecturecountry, 2) the institutional architecture of the system, 3) the operations of

of the system, 3) the operations of the system and competitiveness of the market; and 4) the system and competitiveness of the market; and 4) the integrity of the integrity of

oversight is not optimized. While the law has laid the ground for CSO involvement, there oversight is not optimized. While the law has laid the ground for CSO involvement, there has not been enough participation. (Thornton, 2006) Also,

has not been enough participation. (Thornton, 2006) Also,

[t]here is still a high perception of corruption in procurement. It's a mystery [t]here is still a high perception of corruption in procurement. It's a mystery on whether we are making any impact in outcomes. People still see little on whether we are making any impact in outcomes. People still see little progress in corruption. To be honest, there is a lack of a handle on the progress in corruption. To be honest, there is a lack of a handle on the problem. We didn't know what the size of the problem was. We still don't.

problem. We didn't know what the size of the problem was. We still don't.

(Procurement Watch, Inc. cited in Thornton, 2006:13) (Procurement Watch, Inc. cited in Thornton, 2006:13)

The ADB adds that there is still no specific code of conduct for procurement.

(ADB/OECD, 2006) (ADB/OECD, 2006)

Principal-Agent Model Under Fire Principal-Agent Model Under Fire

Recent procurement-related corruption scandals

Recent procurement-related corruption scandals³⁶³⁶ have undermined the country'shave undermined the country's procurement reform achievements. These stories demonstrate how the PA approach procurement reform achievements. These stories demonstrate how the PA approach may not be sufficient in its entirety. The theoretical problems noted in Chapter two are may not be sufficient in its entirety. The theoretical problems noted in Chapter two are real problems in action in the Philippines. Two case studies are presented in this section real problems in action in the Philippines. Two case studies are presented in this section to illustrate the actual bearing of PA-problems.

to illustrate the actual bearing of PA-problems.

Box 4.1. Commission on Elections (COMELEC) and MegaPacific Consortium (MPC) Box 4.1. Commission on Elections (COMELEC) and MegaPacific Consortium (MPC) case

case

The COMELEC-MPC case is about a procurement that

The COMELEC-MPC case is about a procurement that was consummated. Thewas consummated. The project was competitiv

project was competitively bid out. ely bid out. The contract was awarded. IniThe contract was awarded. Initial paymentstial payments were made. A complaint was

were made. A complaint was submitted for action. Then after, the contract wassubmitted for action. Then after, the contract was nullified by the Supreme Court for

nullified by the Supreme Court for findings of irregularity.findings of irregularity.

In January 2003, just right after the enactment of the GPRA, Executives Order 172 In January 2003, just right after the enactment of the GPRA, Executives Order 172 was issued authorizing the release of P2.5B for the modernization of the 2004 was issued authorizing the release of P2.5B for the modernization of the 2004 elections. The modernization project among others included the

elections. The modernization project among others included the procurement of procurement of automated counting machines (ACM). In a competitive bidding

automated counting machines (ACM). In a competitive bidding process for theprocess for the ACM, only three bidders participated which eventually got

ACM, only three bidders participated which eventually got down to two eligibledown to two eligible bidders – MegaPacific Consortium (MPC) and Total Information Management bidders – MegaPacific Consortium (MPC) and Total Information Management (TIM). After evaluation, the project was awarded to

(TIM). After evaluation, the project was awarded to MPC in April 15, 2003. Note,MPC in April 15, 2003. Note, however, that the contract was e

however, that the contract was e xecuted between COMELEC and MegaPacific e-xecuted between COMELEC and MegaPacific e-Solutions, Inc., a member of the

Solutions, Inc., a member of the consortium.consortium.

36 Commission on ECommission on Elections and MegaPaclections and MegaPacific case (see Appendix C for caific case (see Appendix C for case notes of Atty. Roberse notes of Atty. Roberto Cadizto Cadiz cited in Cerna, 2006); National Broadband Network project (see

cited in Cerna, 2006); National Broadband Network project (seehttp://www.gmanews.tv/nbnzte)http://www.gmanews.tv/nbnzte)

In May 29, 2003, a bid

In May 29, 2003, a bid protest was made but denied by the COMELEC Chairmanprotest was made but denied by the COMELEC Chairman Benjamin Abalos, Sr. The issue was elevated to the Supreme Court through a Benjamin Abalos, Sr. The issue was elevated to the Supreme Court through a petition for certiorari, which the Supreme Court granted. The

petition for certiorari, which the Supreme Court granted. The Supreme CourtSupreme Court declared the contract null and void and referred the case to

declared the contract null and void and referred the case to the Office of thethe Office of the Ombudsman (OMB) for further investigation and determination of liabilities of Ombudsman (OMB) for further investigation and determination of liabilities of public officials

public officials³⁷³⁷..

The Field Investigation Office of the OMB led

The Field Investigation Office of the OMB led the investigation of the case the investigation of the case andand arrived at a resolution that

arrived at a resolution that found the COMELEC Commissioners civilly, criminallyfound the COMELEC Commissioners civilly, criminally,, and administratively liable (October and November 2004). Through a

and administratively liable (October and November 2004). Through a change of change of leadership in the OMB, however, this resolution was reverted by a new panel of leadership in the OMB, however, this resolution was reverted by a new panel of investigators that absolved all respondents of the case

investigators that absolved all respondents of the case

This is a classic tale of a 'corrupt' principal, lack of political will, and ineffective oversight.

Under the PA model, the COMELEC Commissioners are supposed to be the pristine Under the PA model, the COMELEC Commissioners are supposed to be the pristine principal and the agency's BAC the agent. As the case tells us, however, the

principal and the agency's BAC the agent. As the case tells us, however, the

Commissioners themselves are involved in the irregularity – they awarded the contract Commissioners themselves are involved in the irregularity – they awarded the contract to MPC without the BAC's recommendation for award. Assuming the award was an to MPC without the BAC's recommendation for award. Assuming the award was an honest mistake or oversight of the procedural regulations, the Commission could have honest mistake or oversight of the procedural regulations, the Commission could have redeemed itself during the protest. Issues of irregularity were already brought to the redeemed itself during the protest. Issues of irregularity were already brought to the Commission's attention which it ignored – a showing of lack of political will. The Commission's attention which it ignored – a showing of lack of political will. The Commission's hasty decision to award the contract to MPC without supporting Commission's hasty decision to award the contract to MPC without supporting

recommendation from the BAC could also be appreciated as a 'principal interfering with recommendation from the BAC could also be appreciated as a 'principal interfering with the agent', in that it preempted the agent's decision.

the agent', in that it preempted the agent's decision.

Let us modify the PA model: the Filipino people are the principal and COMELEC Let us modify the PA model: the Filipino people are the principal and COMELEC Commissioners and its procurement officers are the agent. The model tells us that the Commissioners and its procurement officers are the agent. The model tells us that the OMB, with its investigative and prosecutorial powers, could have been the oversight OMB, with its investigative and prosecutorial powers, could have been the oversight body to take corrective action. Again, however, the OMB's actions manifest problems of body to take corrective action. Again, however, the OMB's actions manifest problems of 'lack of political will and ineffective oversight.' At play is a web of informal networks and 'lack of political will and ineffective oversight.' At play is a web of informal networks and power relations that overshadow people's motives and decisions. Allegedly, the new power relations that overshadow people's motives and decisions. Allegedly, the new Ombudsman is not independent and is beholden to the President. The COMELEC Ombudsman is not independent and is beholden to the President. The COMELEC

Chairman, on the other hand, has allegedly the support of the President. The COMELEC Chairman, on the other hand, has allegedly the support of the President. The COMELEC

37 The irregularThe irregularities that attended the case incities that attended the case included: 1) Awarding of the coluded: 1) Awarding of the contract by the COMELntract by the COMELEC enEC en banc to MPC six days before

banc to MPC six days before the recommendation for award was submitted by its BAC; 2) MPC is the recommendation for award was submitted by its BAC; 2) MPC is notnot an eligible bidder because it failed to

an eligible bidder because it failed to submit a joint venture agreement (an eligibility requirement)submit a joint venture agreement (an eligibility requirement) establishing the consortium; and 3) Assuming MPC is an eligible bidder, the contract should

establishing the consortium; and 3) Assuming MPC is an eligible bidder, the contract should have beenhave been

Chairman is also allegedly personally close to the incorporators of the winning bidder.

The new Ombudsman, therefore, is expected to render a decision in favor of the The new Ombudsman, therefore, is expected to render a decision in favor of the COMELEC

COMELEC³⁸³⁸..

The OMB is perhaps the most important oversight body against corruption

The OMB is perhaps the most important oversight body against corruption ³⁹³⁹.. It is anIt is an independent body created under the Constitution. It has investigative and prosecutorial independent body created under the Constitution. It has investigative and prosecutorial powers that cover all government officials. In contrast, the PAGC cannot be as

powers that cover all government officials. In contrast, the PAGC cannot be as

independent as it wishes because it is under the Office of the President. Its decisions are independent as it wishes because it is under the Office of the President. Its decisions are mere recommendations that require the President's approval

mere recommendations that require the President's approval⁴⁰⁴⁰. The COA, on the other . The COA, on the other hand, only has the power to investigate or conduct audit

hand, only has the power to investigate or conduct audit⁴¹⁴¹.. The PTG hasThe PTG has recommendatory powers only

recommendatory powers only⁴²⁴²At present, however, the OMB's performance asAt present, however, the OMB's performance as oversight body has not been impressive. Reportedly, since Merceditas Gutierrez has oversight body has not been impressive. Reportedly, since Merceditas Gutierrez has become Ombudsman, the office's conviction rate has declined significantly from 77 per become Ombudsman, the office's conviction rate has declined significantly from 77 per cent to 14 per cent. (Rufo, 2008)

cent to 14 per cent. (Rufo, 2008)

Box 4.2. National Broadband Network (NBN) project.

The NBN is a

The NBN is a cancelled project. It was at the cancelled project. It was at the conceptualisation stage (whichconceptualisation stage (which included negotiations between governments – China and the Philippines – and included negotiations between governments – China and the Philippines – and with prospective providers). This case again involved

with prospective providers). This case again involved COMELEC ChairmanCOMELEC Chairman Benjamin Abalos, Sr., who allegedly acted as

Benjamin Abalos, Sr., who allegedly acted as middleman between themiddleman between the Government of the Philippines and the

Government of the Philippines and the Chinese contractors.Chinese contractors.

((http://www.gmanews.tv/nbnztehttp://www.gmanews.tv/nbnzte))

At the project's initial stages, the National Economic and

At the project's initial stages, the National Economic and Development AuthorityDevelopment Authority (NEDA) was tasked with the review of

(NEDA) was tasked with the review of the project design, including a the project design, including a determinationdetermination of the project cost. At the early stages of the scandal, the main

of the project cost. At the early stages of the scandal, the main issue broughtissue brought against the project was the

against the project was the overpriced cost (from P5 billion increasing tooverpriced cost (from P5 billion increasing to P19.8billion). It eventually led to other more serious

P19.8billion). It eventually led to other more serious allegations of corruption onallegations of corruption on the domestic front. (Fabella, R. and E.

the domestic front. (Fabella, R. and E. De Dios, 2007;De Dios, 2007;

http://www.gmanews.tv/nbnzte) http://www.gmanews.tv/nbnzte)

38 Ombudsman MerceOmbudsman Merceditas Gutierrez was Pditas Gutierrez was Presidential Chief Lresidential Chief Legal Counsel before she was appoinegal Counsel before she was appointed byted by the President to become Ombudsman. She is personally known to the First Family –

the President to become Ombudsman. She is personally known to the First Family – was a classmate of was a classmate of the

the First First Gentleman. Gentleman. (see (see http://wwwhttp://www.gmanews.tv/st.gmanews.tv/story/62796/Ombory/62796/Ombudsman-Gutierrez-logudsman-Gutierrez-logs-a-record-of- s-a-record-of-going-easy-on-Abalos-Comelec)

going-easy-on-Abalos-Comelec) 39

39 The OMB haThe OMB has primary jurs primary jurisdiction over cisdiction over corruption-relateorruption-related cases.d cases.

(http://ww

(http://www.chanrobles.comw.chanrobles.com/republicactno6770./republicactno6770.htm)htm) 40

40 http://wwwhttp://www.chanrobles.com.chanrobles.com/arroyoexecutive/arroyoexecutiveorderno12.htmorderno12.htm 41

41 http://wwwhttp://www.coa.gov.ph/Ge.coa.gov.ph/Gen_Information.htmn_Information.htm 42

42 http://wwwhttp://www.doe.gov.ph/popup/.doe.gov.ph/popup/EO%20662.pdf EO%20662.pdf

1. NEDNEDA SecrA Secretaryetary-Gene-General Romral Romulo Nerulo Neri reveai revealed in a Seled in a Senate inate inquiry tnquiry thathat COMELEC Chairman Abalos offered him a bribe (of

COMELEC Chairman Abalos offered him a bribe (of P200 million) inP200 million) in connection with the

connection with the NBN-ZTE projectNBN-ZTE project 2.

2. RodolRodolfo Lozfo Lozada, a hiada, a hired consred consultaultant by Nent by Neri, rri, revealevealed that hed that he wase was instructed by Neri to try to “moderate the greed” of Abalos and party.

instructed by Neri to try to “moderate the greed” of Abalos and party.

3. Jose de Jose de VeneciVenecia, Jr.a, Jr., a pros, a prospectipective biddve bidder and ser and son of ton of the Speahe Speaker of tker of thehe House of Representatives, revealed that the First

House of Representatives, revealed that the First Family is also involvedFamily is also involved and has share of the kickbacks.

and has share of the kickbacks.

4. Neri tNeri testiestified thfied that he repoat he reported thrted the bribere bribery incidy incident to the Pent to the Presidresident. Thent. Thee President advised him not to accept the money. When asked further if the President advised him not to accept the money. When asked further if the President instructed him to expedite the approval

President instructed him to expedite the approval of the project, Neriof the project, Neri invoked 'executive privilege'.

invoked 'executive privilege'.

To date, the NBN project

To date, the NBN project had been cancelled. Abalos resigned had been cancelled. Abalos resigned as COMELECas COMELEC Chairman. Neri remains mum about the

Chairman. Neri remains mum about the President's involvement. And not one hasPresident's involvement. And not one has been made to face the law for the

been made to face the law for the alleged irregularitialleged irregularities.es.

This is a lot of things that the PA model cannot capture. The interplay of informal and This is a lot of things that the PA model cannot capture. The interplay of informal and formal networks and multiplicity of principals and agents are beyond the scope of the PA formal networks and multiplicity of principals and agents are beyond the scope of the PA model. It demonstrates the ease in how the principal can interfere with agent work and model. It demonstrates the ease in how the principal can interfere with agent work and conveniently take cover in his/her contract when the consequent action is questioned.

conveniently take cover in his/her contract when the consequent action is questioned.

Based on the allegations, for instance, the President urged Neri to approve the project

In document PRINCIPIOS CIENTÍFICO - DIDÁCTICOS DE LA GEOGRAFÍA Y DE LA HISTORIA (página 152-159)