LP looking into poll fraud plot – Noynoy

ATTENTION SENATORS AND AFP DND SEC VOLTAIRE GAZMIN

REQUEST FOR INVESTIGATION : AFP MODERNIZATION PLAN CAPABILITY UPGRADE PROGRAM (CUP) – FIXED COMMUNICATIONS SYSTEM BIDDING & CONTRACT AWARDING ANOMALIES IN THE ARMED FORCES
SPEED UP the AFP Modernization Program or speed up the Corruption ?

Favored supplier, Datatrail Corporation (Datatrail owns 90% of the PROCEEDS of the Joint Venture with Ceragon Networks Israel (now Ceragon Networks USA)), Datatrail is a smalltime taxpayer and private contractor who DID NOT participate the 1ST STAGE BIDDING ELIGIBILITY STAGE, bagged Contracts in AFP Modernization Projects in cahoots with Ceragon Networks Israel (now Ceragon Networks USA) and AFP DND BAC.

Additional violations and criminal offences-

A. Jesus B. Trinos Jr., CTO of Datatrail Corp. is actually “related by consanguinity” to one of the officials/appointees of Secretary of National Defense Atty. Avelino Cruz. Atty. Joey Tenefrancia of CVC Law Office “The Firm” is brother-in-law of one Ms. Beki Trinos-Tenefrancia, a niece of Mr. Trinos. Datatrail Corp. should have made such declaration on AMENDED BID FORM 2, the Affidavit of Disclosure of No Relationship. The Amended Bid Form 2 states that the firm/partnership/joint venture/corporation, or any of its officers, directors, controlling stockholders and members, is NOT related by consanguinity or affinity up to the third civil degree to the Secretary of National Defense, to the BAC, TWG or Secretariat members, or to ANY DND or DND Bureau officials or employees who directly or indirectly TOOK PART in the bidding process or otherwise have DIRECT ACCESS TO INFORMATION that may SUBSTANTIALLY AFFECT THE RESULT of the bidding.

B. Supplemental Bulletin Nr 01 AFP Fixed Communications System Project (Re-Bidding, 2005)

1. This supplemental bulletin is issued to clarify the eligibility requirements to be submitted by a joint venture in order to be declared eligible to bid for the AFP Fixed Communications System (FCS) Project.

2. Pursuant to the Government Procurement Policy Board Opinion No. NPM 018-2005 dated 08 March 2005, the entities comprising the joint venture should be able to INDIVIDUALLY PROVE to the satisfaction of the government that it has the personality to engage in business undertakings. For this reason, the requirement for submission of LEGAL DOCUMENTS should mean the INDIVIDUAL SUBMISSION OF ALL the entries comprising the joint venture. The following are the legal eligibility documents which MUST BE submitted BY EACH of the entities comprising the joint venture:

a) Contractor’s Confidential Qualification Statement (Bid Form 1);
b) Department of Trade and Industry (DTI) registration certificate, whichever may be appropriate under existing laws in the Philippines, or its appropriate foreign equivalent;
c) Valid and current Mayor’s Permit or its appropriate foreign equivalent;
d) Taxpayer’s Identification Number (TIN) or its appropriate foreign equivalent;
e) Sworn affidavit of NON-RELATION to the Secretary of National Defense, the members of the Bids and Awards Committee (BAC), the Technical Working Group, the BAC Secretariat, ot to any DND or DND Bureau officials or employees who DIRECTLY or INDIRECTLY took part in the bidding process or otherwise have direct access to information that may substantially affect the result of the bidding. (Amended Bid Form 2);
i) Board Resolution or its equivalent, authorizing the company to participate in the bidding for the FCS Project, singly or in JOINT VENTURE with another company, as the case may be. (Bid Form 7); and

3. By the nature of the following legal documents, however, submission by ANY of the entities comprising the joint venture shall be considered sufficient:
a) Sworn Statement that the Bidder has visited and/or conducted surveys on all sites and stations on Volume II – Technical Specifications of the Bid Documents for the Fixed Communications System;
b) Commitment to Secure Export License (Bid Form 5);
c) National Telecommunications Commission (NTC) Dealer’s Permit or its appropriate foreign equivalent.

4. On the other hand, the GPPB opined that the submission of technical and financial documentary requirements BY ANY of the entities comprising the joint venture constitutes compliance by the joint venture. Reiterated below are the technical and financial eligibility requirements for the AFP FCS project, which may be submitted by ANY of the entities comprising the joint venture:

TECHNICAL DOCUMENTS
a) Copy of a signle sale transaction with a contract value of FIFTY PERCENT (50%) of the Approved Budget for the Contract amounting to PhP 223.68M;
b) Major Supply Contract over the last three (3) years. (Bid Form 8);
c) Literature and brochures describing the equipment, the manufacturer’s factory, manufacturing facilities, products and service centers;

FINANCIAL DOCUMENTS
d) Net Financial Contracting Capacity (NFCC) Computation or Credit Line Certificate or Certificate of Cash Deposit amounting to ten percent (10%) of the approved budget;

5. It is hereby clarified, however, that notwithstanding the foregoing, the following financial documents specified in the bidding documents are required to be submitted by ALL entities comprising the joint venture pursuant to Executive Order No. 398 dated 12 January 2005 and Revenue Regulations No. 3-2005 dated 17 February 2005:
a) Audited Financial Statements for the last three (3) calendar years, stamped “RECEIVED” by the BIR or the taxign authority in the country of origin, in case of foreign suppliers;
b) Latest Income Tax;
c) Value Added Tax (VAT) or Percentage Tax Returns covering the previous six (6) months; and
d) Tax Clearance issued by the Collection Enforcement Division of the Bureau of Internal Revenue attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account.

6. It must be noted that parties to a JOINT VENTURE cannot add the amount of each opther of their largest signle contract to be able to comply with the eligibility criterion of at least 50% of the approved budget for the contract to be bid (GPPB Opinion No. NPM 020-2005 dated 17 March 2005).

7.For the purpose of this bidding, the following Class “B” Eligibility Documents, when applicable, may likewise be submitted inly by the appropriate entity comprising the joint venture:
a) Joint Venture Agreement (Bid Form 10);
b) Letter of authority to validate submitted bid docs (Bid Form 11);
c) Manufacturer’s authorization (Bid Form 12);

8. On another matter, prospective bidders are advised of the following changes in the eligibility documents required to be submitted for the AFP FCS PRoject:
b) The Sworn Affidavit of Non-relation or Bid Form 2 as required under Section 25.4.1.1.6 is hereby amended.

SIGNED (April 2005): USEC. JOSE F. SANTOS Chairman

As amended by Memorandum Order No. 176, dated 27 June 2005, published in the Official Gazette on 29 August 2005 (again, this is a year 2005 Memorandum Order).

“Class “A” Documents –
a) Valid joint venture agreement, in case of a joint venture. EACH MEMBER of the joint venture shall submit the required Eligibility Documents;” ;

“Eligibility Requirements for Joint Venture (JV): The determination of eligibility of prospective bidders is based on the submission of Class ‘A’ (legal, technical and financial documents).” ;

“ALL MEMBERS of the JV should provide SEPARATE Class ‘A’ documents to be eligible.”.

DND BAC failed to implement the latest IRR of RA 9184 on Ceragon Networks Israel (now Ceragon Networks USA) – Datatrail Corp. Joint Venture the law states that, “EACH MEMBER of the joint venture SHALL SUBMIT (AND PASS !) all the required Eligibility Documents.” So, Datatrail MUST comply “SUBMIT/PASS” all Eligibility Documents first, just like what the other bidders did. Must SUBMIT THEM infront of the other bidders also, so we can validate ALL their original Class ‘A’ Legal Documents ! Datatrail Corp. DID NOT participate the 1ST STAGE ELIGILIBITY STAGE, this is even documented on PAF Manokski Website online archive. Only 4, not 5 participated the 1ST STAGE BIDDING, THE ELIGIBILITY STAGE.

THE “FIXERS”:

Interestingly, Ceragon Networks Israel (now Ceragon Networks USA) and Datatrail Corp., were two new suppliers in 2005 who BOTH win this AFP project the VERY SAME TIME these new people in DND BAC got their respective appointments, these were also the very same DND BAC OFFICIALS who declared the ‘highly questionable’ failure of bidding in prior bidding events, also happened in early 2005 and the very SAME PEOPLE who have ‘the connections’ the power TO REVISE within March 2005 (between 08 March 2005 and 17 March 2005) AND very SAME PEOPLE who ISSUED the Supplemental Bulletin Nr 01 prior to the 2005 Re-Bidding of AFP FCS Project this in effect, AS IT TURNED OUT LITERALLY TO GO EASY with the Joint Venture conditions such that during the 2005 Re-bidding, had allowed the entry of Ceragon Networks Israel (now Ceragon Networks USA) and such SPECIAL ACCOMMODATIONS provided by AFP DND BAC they have fully accommodated the entry HAVE TOTALLY SECURED THE INTEREST of its partner Datatrail Corporation who REFUSED and DID NOT participate the 1ST STAGE BIDDING able to bag the project, as if EVERYTHING TURNED OUT TO BE LEGAL IN AN INSTANT ! This is exactly lutong MACAW ! These were the same DND BAC OFFICIALS who said in March 2005 involved in the highly questionable failure of bidding, “Because of failure of bidding, we will invite more bidders this July 2005 for a level playing field.”

Here’s our question to AFP DND BAC: “Is this really fair ? “Is this the level playing field that they were talking about ?? Ang pinanalo ng AFP DND BAC, yung kumpanyang walang kadala dalang mga dokumento kundi JVA lang ? Binigay lang ng Datatrail Corp. ang Joint Venture Letter sa AFP DND BAC kung kelan tapos na ang bidding (Stage 1 & 2) walang nakakita sa aming mga bidders kung paano napasama sa listahan si Datatrail Corp., puro illegal shortcuts naman lahat ng ginawa ng DND-BAC pag si Datatrail Corp. na, samantalang yung mga dokumento namin lahat dumaan sa butas ng karayom; si Datatrail Corp., walang documents, di naman talaga kasali sa bidding pero ang palabas ng AFP DND BAC sila ang nanalo dahil may JVA, ano ba iyan, panalo kahit walang mga dokumento, hindi man lang nag-Bid ? Nagmamadali sa pag award ang DND-BAC noong 2006 excited na maipanalo si Datatrail Corp. kasi yung Datatrail Corp. na nanalo, di naman talaga sumali sa bidding at walang mga documents at marahil alam nilang masisilipan na sila dahil malaking pera ito na andaming irregularities hindi talaga dumaan sa tamang process si Datatrail Corp. Where’s transparency here ??? AFP DND BAC (2005-2006) DID NOT strictly implement the RA9184 and IRR dahil may manok pala sila. And where is business ethics, moral integrity and professionalism here ? Ano ba itong AFP FCS bidding na ito, ungguyan ?” Sorry for this word pero SOBRANG GINAGO po ang mga legitimate Bidders !

TAINTED WITH CORRUPTION & CONFLICT OF INTEREST:

The CTO of Datatrail Corp. is DIRECTLY “related by consanguinity” to one of the officials/appointees of then Secretary of National Defense Atty. Avelino Cruz (DND SEC 2004-2006) — Mr. Jesus B. Trinos Jr. is uncle-in-law of Atty. Joey Tenefrancia of CVC Law Office “The Firm” and currently, the election lawyer of Senator Mar Roxas. This may explain why such Joint Venture (the JVA specifically designed for this AFP FCS Project) have “fully accommodated” Datatrail Corp. for them to bag the project !

GOVERNMENT FRAUD: For having not declared, the Sworn affidavit of NON-RELATION to the Secretary of National Defense, etc. because of this they are, “Winners by Fraud !”

OBVIOUS TRACES OF GROSSLY MANIPULATED BIDDING SCAM & END RESULT OF SUCH A CONFLICT OF INTEREST:

The AFP DND BAC literally “fixed” with the help of their ‘INSIDE-JOB CONNECTIONS’ can CHANGE the Government Procurement Policy IN AN INSTANT they can release a Supplemental Bulletin Nr 01 AFP Fixed Communications System Project (Re-Bidding, 2005) “…submission by ANY of the entities comprising the joint venture shall be considered sufficient….” This AFP FCS bidding is nothing but ALL GROSS MANIPULATIONS ! With this, the deficiencies of Datatrail Corp. (who is ALSO DIRECTLY CONNECTED with the CVC Law Office “The Firm”) will be patched up by their partner, Ceragon Networks Israel (now Ceragon Networks USA). Also, the declaration of Ceragon Networks Israel (now Ceragon Networks USA) and Datatrail Corp. “Joint Venture” happened in November 2005 ! The 1ST STAGE ELIGIBILITY STAGE was held September 08, 2005, participated by four (4) bidders only, NOT 5. Datatrail Corporation DID NOT participate the bidding !

SOLID EVIDENCE (THIS IS WELL DOCUMENTED)

TO SHOW PROOF OF EVIDENCE THAT We have NOT seen Datatrail Corp. during the 1ST STAGE THE ELIGIBILITY STAGE Bidding, here’s an AFP document from their online archive:

AFP Modernization Program Fixed Communications System Bid Bulletin (notice ONLY four bidders’ ELIGIBILITY DOCUMENTS WERE SCRUTINIZED, namely: Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks)

X X X X X X
Fixed Communication System (stage/status: 1st stage of the 2-stage procurement mode was held last September 8, 2005; new invitation to apply for eligibility and to bid (ITAEB) will be issued on October 20, 2005)
Procurement Stage: 1st Stage – Opening and Submission of Bids
ABC: P447,360,000.00
Length of Delivery: 240 calendar days upon issuance of Notice to Proceed
Highlights : Through a Supplemental Bulletin, the deadline for submission and opening of bids for the 1st stage bidding for this project was changed from 25 August 2005 to 8 September 2005, 9:00 a.m. On the day of submission and opening of bids, 4 companies complied, namely Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks. None of them failed when their eligibility envelopes were opened. During the initial evaluation of the technical proposals of the 4 bidders, the BAC declared that they all passed, yet subject to post qualification/evaluation. BAC shall formally announce in writing, through the Secretariat, the results of the evaluation. Schedule of the opening of the revised technical proposal and their financial proposals (i.e. 2nd phase of a two-stage bidding process) is scheduled on October 20, 2005 due to request of bidders for longer time to prepare revised technical proposals.

http://www.hueybravo.net/Modernization%20Projects.htm

X X X X X

Based on the AFP BAC’s Bid Bulletin, it showed beyond doubt that there were ONLY 4 Bidders, not 5; the private Filipino company Datatrail Corp. was not in the list !

WHERE’s DATATRAIL CORPORATION during the 1st STAGE Bidding ?? No docs ? Missing in action ? Datatrail Corporation totally ignored the 1ST STAGE ELIGIBILITY STAGE. THEY HAVEN’T EVEN SUBMITTED THEIR EFS BIR Certifications PAID Stamped Receipt equivalent to 50% of the ABC and Qualifications History, etc ? So now here’s the question, IS THIS the “level playing field” that AFP DND BAC were talking about ? Bakit napakalakas naman po yata ng Datatrail Corporation sa DND BAC. Kung kelan halos patapos na ang bidding, dun lang ididikit yung name nila sa Project na naka- “JVA” kuno ! Dahil po ba kasi masyadong malaki ang “TONG-PATS” !??

The Philippine STAR August 23, 2005 Tuesday (News, p. 3):

OMBUDSMAN ASKED TO PROBE BI OFFICIALS OVER $10-M ALIEN ID SCAM

Ilocos Norte Rep. Imee Marcos asked Ombudsman Simeon Marcelo yesterday to investigate allegations that Bureau of Immigration (BI) officials are involved in an allegedly anomalous $10-million deal for the printing of renewable identification cards for foreigners in the country.

The opposition congresswoman cited in particular the questionable awarding of a contract to Datatrail Corp., which was tasked to undertake the Alien Certificate of Registration ID project.

“The office of the Ombudsman should look into this, and I think Commissioner Alipio Fernandez has to explain why Datatrail was awarded the contract,” she said. The firm’s officers remain anonymous until now, she added.

Marcos said what makes the contract more suspicious is that Datatrail is a “fledging” company. “Some BI officials see the ACR-ID card as another money-making opporunity to legally extort from Chinese and Indian residents,” she said.

Marcos said the BI is expected to rake in $10-M or about Php 5.6-Billion from the implementation of the project alone.

“It only goes to show that the people in the bureau have other things in mind,” she said.

Marcos said the project means more money, especially for BI officials, who will receive hefty commissions, since the previous ACR-ID cards only cost PhP 1,050.

That amount has now ballooned to $50 or PhP2,759 every year, she added.

You are again misleading the Public and the Philippine Government. Since your Company DATATRAIL CORPORATION did not participate the 1ST STAGE Bidding, the ELIGIBILITY STAGE, your best CHANCE to present your legal documents to become eligible to Bid so we could recognize you as ONE OF THE QUALIFIED BIDDERS, you just refused and still CONTINUE TO REFUSE to present your Eligibility Documents. Niligaw po ninyo yung mga Signatories na binanggit ninyo. Also, please follow the rule of law the latest RA 9184 and IRR on JVA published early 2005. Since you DID NOT participate the 1ST STAGE BIDDING which is the MOST IMPORTANT STAGE BECAUSE IT IS THERE WHERE WE CAN SEE IF YOUR COMPANY, DATATRAIL CORPORATION IS PAYING THE RIGHT TAXES and TO SEE YOUR QUALIFICATION HISTORY, wala po kayong pinakitang kahit anong documents. Again, Datatrail Corporation DID NOT participate the 1ST STAGE Bidding. This is highly illegal and criminal offense on your part as a Contractor, obviously THIS BIDDING AND AWARDING OF CONTRACT WAS TAINTED WITH GRAFT AND CORRUPTION.

And So, the public may know !

Bid Rigging in AFP Modernization Program

Syndicated Estafa: Favored Supplier Bags AFP Contract Without Documents; Massive Irregularities In the Bidding Process And With Defective JVA

FRAUD COMPLAINT: AN OPEN LETTER TO DND-BAC, AFP, COMMISSION ON AUDIT, BUREAU OF INTERNAL REVENUE AND THE OMBUDSMAN

The Armed Forces of the Philippines Modernization Program (AFPMP)

AFP-Wide Support and Separate Unit (AFPWSSU) Budget is P10.616-B in 15 years !

Contract Ref. No. AFP Fixed Communication System (FCS) Project, Project Nr AFPMP-GHQ-09-001-04.

DND BAC biased towards a supplier who did not participate the Stage 1 and 2 bidding process ended up as the winner bagging the AFP FCS project, the PhP 447,360,000.00 being the Approved Budget for the Contract.

The AFP FCS bidding held between Y2005 and Y2006 is nothing but a hoax.

Former Sec. Gilbert Teodoro, recently signed approved the awarding of the contract to a privately-owned Filipino corporation called Datatrail, a supplier highly regarded by the genuine bidders simply as an ‘Order taker’, bagging the project illegally. The DND-BAC in question were the appointees of former Defense Secretary Avelino Cruz Jr. between 2004 and 2006, concurrent with his term of office as DND Chief.

Issues of favoratism were raised by the bidders against the DND BAC for the questionable awarding of contract to an ‘Outsider’ with defective JVA, supplier Datatrail (regarded as an outsider because Datatrail did not participate any of the bidding stages 1 & 2).

The bidders and everyone in the room including the watchers all knew that Datatrail did not participate the bidding process Stage 1 and 2: Datatrail did not submit any Eligibility Documents, no original income tax stamped ‘Received’ by the BIR, etc. So, how could they win ?

This is again, Datatrail’s template in the works after their Bureau of Immigration ID Scam in 2005, leaving everyone in the dark.

AGENCY INVOLVED : DND BAC 2005-2006
DND – BAC CHAIRMAN USEC JOSE F SANTOS
VICE CHAIRMAN VADM ARISTON V DELOS REYES AFP
BAC MEMBERS USEC FRANCISCO F DEL ROSARIO, ASEC JOSE N FERRER & ASEC OTHELO C CARAG

The former DND BAC (2005-2006) have a lot explaining to do when they hastily awarded the contract to a supplier, Datatrail without the submission of Class ‘A’ Legal Documents vital to ensure a ‘fair playing field.’ The bidders wanted to see the papers of Datatrail if they were indeed eligible to bid in Y2005.

The only thing that Datatrail presented to the DND BAC (after all the four biddders were shortlisted- Alcatel, Ceragon, Nera and Lucent rated ‘Passed’ the Stage 1 and Stage 2 bidding process), was a single piece of paper. It stated after the bidding stages 1 and 2, that supplier Datatrail was actually in Joint Venture Agreement with Ceragon.

With the submission of that JVA paper alone, the DND BAC it being unmindful hastily awarded the contract to Datatrail, no questions asked :

During Stage 1 and 2 bidding process when all the bidders were required by DND BAC to submit their bids, we could not see Datatrail, merely an ‘Outsider’ and part of the audience (no Class ‘A’ Original Legal Documents with them during the Stage 1 and 2, so to speak), yet this supplier Datatrail managed to surprise everyone to have been proclaimed as ‘the winner’ bagging the contract. Most of the bidders and watchers suspected “irregularities” in the conduct of the bidding process by the Bids and Awards Committee (BAC).

This is illegal, the DND BAC seemed ignorant about law governing procurement IRR of RA 9184:

IRR of RA 9184 on JVA states the following-

As amended by Memorandum Order No. 176, dated 27 June 2005, published in the Official Gazette on 29 August 2005 (again, this is a year 2005 Memorandum Order).

“2. Class “B” Documents –
a) Valid joint venture agreement, in case of a joint venture. EACH MEMBER of the joint venture shall submit the required Eligibility Documents;” ;

“Eligibility Requirements for Joint Venture (JV): The determination of eligibility of prospective bidders is based on the submission of Class ‘A’ (legal, technical and financial documents).” ;

“ALL MEMBERS of the JV should provide SEPARATE Class ‘A’ documents to be eligible.”.

Here, Datatrail did not participate the bidding process Stage 1 & 2 did not submit their Class ‘A’ Documents. DND BAC never examined Datatrail’s eligibility qualifications in front of the other bidders. Because of this, Ceragon Networks JVA with Datatrail, who submitted nothing but the JVA paper, both of them should then be disqualified.

CLEAR PATTERNS OF COLLUSION AND MASSIVE CORRUPTION AMONG THE THREE SUPPLIERS AND DND BAC:

Supplier Datatrail, in connivance with DND BAC, employed schemes which defeat competition. Their papers were never examined by DND BAC; unlike the other bidders whose papers were being scrutinized well by the DND BAC, Datatrail was treated differently and more favorably, they were simply part of the audience acted like ordinary watchers.

Circumstantial and corroborative evidence was clearly seen here: There’s collusive agreement among some of the bidders which predetermines the winning bidder and limits or eliminates competition among the conspiring vendors.

On DND BAC, they did not ask Datatrail to submit any Class ‘A’ Elegibility Documents, unlike the other bidders, Datatrail was allowed “not to participate” the bidding process Stage 1 & 2. DND BAC did not dare to ask Datatrail why they were there yet not submitting their bids.

Adding insult to injury, Datatrail instantly bagged the project without presenting any Class ‘A’ documents. Deadline to submit all the original legal documents as required by DND BAC like the Income Tax Stamped ‘Received’ by the BIR, etc. was ignored by Datatrail. And Proof of Evidence on Datatrail’s annual tax payment in Y2006 was P55,000, so how come they pass all the Eligibility Requirements ? Where in the world are the Datatrail’s Class ‘A’ legal documents, all original ? The answer is NONE. They submitted nothing to DND BAC but a single piece of paper, the so called ‘JVA’ turned the tide. With this was an immediate announcement to all the bidders that they bagged this AFP project !

DND BAC WAS SO UNFAIR: If the non discretionary pass/fail criteria will equally apply implemented on Datatrail as well, this should result in the automatic disqualification of this bidder. Datatrail does not even deserve to be called a ‘bidder’ because they bypass the Stage 1 and 2 bidding process, yet the DND BAC still allowed Datatrail’s entry even after all the bidding process Stage 1 & 2 had already taken place.

Also, the IRR law states that bidders cannot just modify their status from lone bidder Ceragon into JVA in any of the bidding stages. There’s massive “irregularities” in the conduct of the bidding process, one of the genuine bidders had this comment, “Sobra nang garapal ang ginagawa sa atin ng mga ito (DND BAC), just imagine, pinahirapan na nga tayo sa Stage 1 & 2, yun pa palang di naman kasali hindi naman bidder, walang dalang papel yun pa ang mananalo !”

Another controversy was the sharing of resources and representatives. The bidder had the same legal representative as that of another bidder. In this bidding, Jess Trinos, official representative of Alcatel was directly competing against Noel Guevara, official representative of Ceragon Networks. At the same time, during this bidding process Stage 1 and 2, we often bumped into them outside, they were together representing themselves as the ‘official representatives’ of Ceragon both promoting selling Ceragon Networks to Sun Cellular, etc. So, there’s unlawful collusive practice and massive price manipulation going on among these bidders designed to establish a bid pricing. This is direct violation of Philippine Procurement Act and IRR of RA9184 that states no single representative for both suppliers. Alcatel and Ceragon Networks should be reprimanded for using the same representatives — this is an event of a situation which can be interpreted as acts of corruption, their unfair shady schemes and unethical business practices played an undeniable role being part of Modus Operandi of a Scam.

There’s also one striking very unusual procurement mode bidding patterns here: Bidding schedules and deadline for submission and opening of bids were changed from time to time dragged on too long to accommodate the favored bidder, Ceragon Networks. [Ref.:: 1st Stage 25 Aug moved to 8 Sep 2005 and the 2nd Stage 20 Oct 2005 hanging with the announcement that a New Invitation to Apply for Eligibility and to Bid (ITEAB) will be released.] Finally, we figured out there’s really this DND BAC’s plan with Datatrail was obviously bias: they will use Ceragon as the JVA partner so Datatrail could win; otherwise, a re-bidding would (again) take place until DND BAC get what they want, their favored supplier obviously was “Datatrail !”

QUESTIONABLE CREDIBILITY

DND BAC’s dishonesty, abuse of confidence, fraud, betrayal of public trust, lack of transparency, grave misconduct, bid rigging and neglect in the performance of their duties:

1. STAGE 1 & 2 Bidding Process: DND BAC did not conduct a detailed evaluation of Datatrail papers Class ‘A’ Eligibility Docs using the non-discretionary criteria and Check the COMPLETENESS of the bid. The process also violated the government’s procurement act didn’t even have a tax clearance, a prerequisite in pre-bidding process. Why ? The answer is simply because Datatrail submitted nothing. So, there’s nothing to check and evaluate.

2. What is also very questionable is the way decisions on the bidding stages were made. We found out that the DND-BAC ASEC Othelo Carag decides for the committee and acted as the main spokesperson for DND-BAC. And the decision was always in favor of Ceragon Networks (and Datatrail thru JVA letter). Why JVA with Datatrail (with no documents and actually did not participate the bidding stages 1 & 2) ? Our curious minds have this disturbing question to ask: Why Ceragon Networks, even if they can do the project alone, needed Datatrail who had no qualifications and made such ‘risky decisions’ entering a JVA with Datatrail who did not participate the bidding stages 1 & 2 to become eligible, that anytime this issue can be used against them as enough grounds for their immediate disqualification. The reason ? Your guess is as good as anyone. Ceragon Networks had to return compensate all the big favors- like the previous questionnable failure of bidding declared by the same DND-BAC officials in early 2005 so Ceragon and Datatrail be allowed to participate in the re-bidding and the questionnnable delays further resetting of bid due dates as being requested by Ceragon Networks so they could have enough time to submit their bid. For sure the payback price (multi-million dollar kickbacks !) was right. This is no longer for the best interest of the Filipinos, these DND-BAC were there acting on their own bidding process decisions skewed all were self serving and recklessly showing they also have a vested interest in this project. Having the project proceed with a defective JVA — another event of a situation which can be interpreted as an act of corruption.

3. POST QUALIFICATIONS: DND BAC failed to verify, VALIDATE and ascertain all statements and documents submitted by Ceragon Networks and Datatrail JV to ensure that EACH MEMBER of the joint venture have submitted the required Eligibility Class ‘A’ Documents. Up until now, in the minds of the “genuine” bidders, only Alcatel, Lucent, Ceragon and Nera documents were evaluated and rated ‘Passed.’ These four bidders were rated ‘Passed’ because they participated the bidding process Stage 1 and 2 and ‘Passed.’ Then, one JVA paper suddenly appeared, out from nowhere is…

AN INSTANT MAGICIAN: DND BAC proclaiming Ceragon “and Datatrail” as winners. Nobody in DND BAC, no one dared ask the Datatrail Class ‘A’ Eligibility Documents because the bidders were intimidated. Bidders were expecting DND BAC would exercise their functions fully well, that DND BAC will do all the questioning about Datatrail’s papers, to establish a ‘fail playing field’ — but sadly, this NEVER HAPPEN ! It was supposed to be the primary role of the DND BAC to ask Datatrail their Class ‘A’ Legal Documents in front of the other bidders. To this day, the bidders knew Datatrail never participated the bidding process Stage 1 & 2, so bagging the project without the submission of these Class ‘A’ Legal Documents was illegal ! Such fraud and illegal acts committed by DND BAC: they allowed a supplier Datatrail to submit nothing except that single document, JVA. to bag this AFP project. In their JVA arrangement, it is 90% Datatrail / 10% Ceragon Networks ownership or interest of the JVA, this means 90% of the profit goes to Datatrail and 10% goes to Ceragon. In this JVA, ONLY Ceragon’s Class ‘A’ Legal Documents were evaluated, getting only the 10% of the deal; Datatrail’s Class ‘A’ Legal Documents were ALL missing (Contrary to Datatrail’s press releases in 2006 and 2007 to have won major telecom projects in PLDT/Smart and Sun Cellular actually these were solely undertaken by Ceragon, any of the Concerned Readers may validate this with these telcos if they know Datatrail; so how can they support this AFP FCS project if Datatrail had no papers, Datatrail was not even an accrediated vendor for Globe Smart and Sun Cellular to this day so where did DND-BAC gather any documentary evidence no basis that Datatrail had big telecom projects as required by law for Datatrail to become a winner in 2005); IRR of RA 9184 to qualify, Datatrail MUST HAVE THESE QUALIFICATIONS “with similar contracts” consisting of 85% microwave radios and 15% pabx MUST PROVIDE some Proof of Evidence to have satisfied at least 50% of PhP 447,360,000.00 ABC within 3 years and “Certificate of Acceptance” in CY2003 CY2004 CY2005; also, no financial documents, no EFS, no income tax payment stamped ‘Received’ by the BIR; even a simple government permit, the Dealer’s Permit Certificate being issued by the National Telecommunications Commission (NTC) for Datatrail to legally import and sell ‘microwave radios’ in the Philippines- which is one of the basic requirements part of Class ‘A’ Eligibility Documents there’s NONE (no Supplier Accreditation permit from NTC !); no PROOF of telecom projects yet Datarail is getting 90%of the deal. Such a “Big Money Pot” should really be very very attractive to the DND BAC as well to proceed with defective JVA !

3. DND BAC should automatically disqualify Datatrail, a P55,000 taxpaying company; no Eligibility Class ‘A’ Documents presented during Stage 1 & 2. If for some reason, DND BAC could produce the Datatrail Class ‘A’ Eligibility Documents since for sure they will now be questioned, a SENATE fact finding investigation would be necessary to check the authenticity of their legal documents and VALIDATE with BIR Stamped ‘Received’ their SALES and TECHNICAL RECORDS from their supposed “existing” customers because NONE of the ‘genuine’ bidders knew Datatrail was a telecom company esp. for CY2003, CY2004 and CY2005 as of the bid’s reference dates. We also learned that Datatrail had not sold even a single piece of microwave radio or pabx equipment. We have all the reason to believe Datatrail’s documents will be fabricated since we don’t see them in the telecom industry, no supply record in telcos and carriers. So, why did the DND BAC ‘internally’ rate ‘Passed’ Datatrail’s documents if the bidders were not even allowed by DND BAC to see them witness during Stage 1 & 2 whether Datatrail submitted all the Class ‘A’ Legal Documents or not because Datatrail did not participate the bidding process Stage 1 & 2.. Here’s the summary of what the rest of the bidders comments, “Sila sila na lang sa loob ang nakakaalam niyan. .. This is exactly LUTONG MACAW !… Napakagarapal, DND BAC pa man din ang gumagawa ng mga illegal sa AFP FCS bidding na ito… Kasi harap harapang lokohan lang pala ang bidding na ito as in daylight robbery kung magtrabaho ang DND BAC na ito… Wala pa yung bidding ALAM NA NILA ANG MANANALO… Kaya pala reset ng reset ang bidding schedules kasi hirap na hirap na silang ipanalo MAY MANOK PALA SILA kaya BRINASO na lang talaga nila ang PAGPANALO sa Datatrail, siniguradong bago matapos ang term nila as DND BAC, naareglo na !”

4. DND BAC should not allow JVA with supplier Datatrail, a sudden change of status of Ceragon after the bidding process Stage 1 and 2 had taken place, per IRR of RA9184, doing so is illegal !

5. DND BAC without any valid reasons, repeatedly cancel or move the bid due dates INTENTIONALLY DELAYING THE BID DUE DATES so their favored supplier, Ceragon, could catch up with all the bidding requirements. In return to Ceragon’s favor, is the sudden JVA with Datatrail so both of them win. This is another controversy proof of evidence that there’s strings attached: At least three suppliers, Alcatel, Ceragon Networks and Datatrail were in collusion with the DND BAC Officials, who overly manipulated this bidding to bag this AFP FCS project.

Interestingly, Ceragon and Datatrail, were two new suppliers who both win this AFP project the very same time these new people in DND BAC got their respective appointments, these were also the very same DND BAC OFFICIALS who declared the ‘highly questionable’ failure of bidding in prior bidding events, also happened in early 2005. And the same DND BAC OFFICIALS who said, “Because of failure of bidding, we will invite more bidders this July 2005 for a level playing field.”

Here’s our question to DND BAC: “Is this the level playing field that they were talking about ? Ang pinanalo ng DND BAC, yung kumpanyang walang kadala dalang mga dokumento kundi JVA letter lang? Binigay lang ng Datatrail ang JVA (DND BAC) kung kelan tapos na ang bidding (Stage 1 & 2) walang nakakita sa aming mga bidders kung paano napasama sa listahan si Datatrail, puro illegal shortcuts naman lahat ng ginawa ng DND-BAC pag si Datatrail na, samantalang yung mga dokumento namin lahat dumaan sa butas ng karayom; si Datatrail, walang documents, di naman talaga kasali sa bidding pero ang palabas ng DND-BAC sila ang nanalo dahil may JVA, ano ba iyan, panalo kahit walang mga dokumento, hindi man lang nag-Bid ? Nagmamadali sa pag award ang DND-BAC noong 2006 excited na maipanalo si Datatrail at kasi yung Datatrail na nanalo, di naman talaga sumali sa bidding at walang mga documents at marahil alam nilang masisilipan na sila dahil malaking pera ito na andaming irregularities hindi talaga dumaan sa tamang process si Datatrail. Where’s transparency here if DND-BAC themselves cannot strictly follow the IRR of RA9184. And where is business ethics, moral integrity and professionalism here ? Ano ba itong AFP FCS bidding na ito, ungguyan ?”

In this AFP FCS bidding, the DND BAC obviously failed to implement the latest IRR of RA 9184 on JVA, as amended by Memorandum Order No. 176, dated 27 June 2005, published in the Official Gazette on 29 August 2005 !

DND BAC failed to implement the latest IRR of RA 9184 on Datatrail-Ceragon JVA the law states that, “EACH MEMBER of the joint venture SHALL SUBMIT (AND PASS !) all the required Eligibility Documents.” So, Datatrail MUST comply “SUBMIT/PASS” all Eligibility Documents first, just like what the other bidders did. Must SUBMIT THEM infront of the other bidders also, so we can validate ALL their original Class ‘A’ Legal Documents !

IMAGINE THAT PIECE OF PAPER: A piece of paper called J-V-A, imagine how these DND BAC OFFICIALS can declare a Php 55,000 taxpayer privately-owned Filipino supplier called ‘Datatrail’ with no history lacking the three-year track record in telecommunications as required by law, a one million peso supplier became an instant W-I-N-N-E-R of this PhP 447,360,000.00 AFP FCS Project, ended up being a W-I-N-N-E-R without documents, an instant winner simply because of DND BAC connections !

DECEPTION DETECTION, FRAUD & COLLUSION AMONG SUPPLIERS: We believe that there’s enough grounds for DOJ / NBI to file SYNDICATED ESTAFA CASE against these ‘favored’ suppliers, with Datatrail and Ceragon Networks JVA for acting in bad faith simultaneously with the commission of fraud : On Datatrail, records in SEC it’s now a corporation with P1.25 million paid up claiming to have bagged the PhP 447,360,000.00 project exempting themselves from the submission of Class ‘A’ Eligibility Documents (legal, technical and financial documents) was highly illegal, falsely pretending to possess history qualifications, use of imaginary transactions, acting in bad faith and deception by resorting to some fraudulent kickback scheme practice (highly anomalous collusion among conspiring suppliers together with the DND BAC) to insure success in this bidding and their continuous acts of fraud over the years constant pretenses providing fictitious informations/materials to AFP Modernization Program clear evident certain in this latest awarding of contract the massive corruption that is happening, such an organized crime enterprise with real intent so unstoppable so determined to defraud the nation of millions of dollars, because of ‘Inside-Job connections’.

We believe an investigation is but appropriate especially that there’s big money involved in this latest AFP Modernization Program scam. This is about to be implemented with the payment set for release anytime now.

Hope this merits your attention and bring this to the right concerned agency or body for immediate attention and action, to truly eradicate the culture of corruption that took root in the military organization in cahoots with unscrupulous individuals. And more power to your organization recognized to have absolute professional journalistic responsibility of reporting the facts, consistently delivering a fair and balanced reporting and conscientiously serve in best interest of the Filipino people.

Fraud, Conflict of Interest and Betrayal of Public Trust :

1. Mr. Odilon Sta. Teresa, co-founder, vice president and chief operating officer of Datatrail Corporation, holds concurrent assignment as the Treasurer /Shareholder at Recruitment Center Philippines Inc. in which Lawyer F.A. Villaraza holds the position as Chairman/Shareholder

2. Former Defense Secretary Avelino Cruz Jr. (who appointed these highly questionable DND BAC Officials 2004 to 2006) and Lawyer F. Arthur L. Villaraza, are founders of CVC Law Office and currently hold important positions in the same law office.

MISSED OUT OTHER PLAYERS, USE THEIR WEBSITE DETAILES AS PRIMA FACIE AGAINST THESE LAWYERS NOTABLE TO HAVE BEEN ORIGINATED FROM ‘The Firm’ LAW OFFICE AS CO-FOUNDERS : There’s a curious coincidence of malpractice, reflective synchronicity fluke or yet another solid logical proof of evidence that by analogy, there’s grave conspiracy and collusion to bag the AFP Modernization Program AFP FCS Project/s;

Link 1 http://www.rcphil.net/page_about_us.php
Link 2 http://www.cvclaw.com/Article/Our-Firm.html

Alleged the Winner Without Documents :

Link 3 http://www.philstar.com/Article.aspx?articleId=396284

This may explain how easy for Datatrail Corp. with a Php 1.25-M paid-up capital, was exempted from the IRR of RA 9184′s Class ‘A’ eligibility documents, able to bag the AFP Modernization Program (the Supplier Datatrail and the Customer DND Chief, by simple analogy Link 1, Link 2, Link 3 they’re all connected !)

For Senate Inquiry, please !

SCAMS INVOLVING A DUMMY COMPANY

Dummy companies are corporate entities in name only, hollow false-fronts, which own no real assets. They are essentially an exercise in fraud designed to keep the real owners involvement a secret from outsiders. Dummy companies cook books of accounts, fabricate track records (legal, technical and financial documents) and hide the identity of more unscrupulous individual persons promoting it. A dummy or shell company is an entity created to serve as a front or cover. It can have the appearance of being real but lacks the capacity to function independently. The goal of Dummy Corporation can be to conceal the true ownership, avoid taxes and does something intentionally well determined to commit fraud. Last year, there was an extreme case where a foreign manufacturer, was marred in corruption allegations for using secret funds channeled to dummy companies. These funds were used to bribe customer staff (and manufacturer reps handling the account as their ‘internal’ profit sharing of the loot) into awarding the manufacturer both lucrative and shady contracts. Several of top company officials were arrested and charged on these grounds. In this AFP FCS bidding, the method of procurement law Implementing Rules and Regulations of R.A. 9184, was gravely abused by these DND-BAC officials engaged in anomalous, irregular procurement activities clearly seen here allowing a company that initially pretended as an ‘Outsider’, not included in the shortlisted suppliers, incompetent (rated ‘not so qualified or entitled’ to Bid) and lacks the required three-year Class ‘A’ eligibility documents, the one million peso net worth company Datatrail was able to bag the Billion peso AFP FCS project, by simply telling DND BAC and the public that this Dummy Corporation has a JVA letter, period; instantly, DND BAC awarded Datatrail this AFP FCS project. A competitive public bidding RA 9184 never happened because of graft and corruption !

raissa robles says:
February 24, 2010 at 5:22 PM

I just checked Datatrail. There is only one corporation listed in SEC by that name. It’s now a 5 million peso corporation with P1.25 million paid up, which was initially formed in 2001 as J. Serrano Trading Corp. The present owners are: George P.F. So, Elaine U. So, Tomas de leon Jr and Odilon Sta. Teresa. Might you know any of them?
E-mail me at [email protected],

Raissa

What the Concerned Reader, Raissa Robles, discovered inside The SEC:

This supplier Datatrail is indeed now just worth a million peso Corporation only ! This would explain exactly as the MAIN REASON behind why Datatrail cannot participate the open competitive bidding Stages 1 & 2, because deficiencies like this will be magnified by other bidders against Datatrail and DND BAC for Datatrail’s immediate disqualification. What the former Sec. Gilbert Teodoro, recently signed approved the awarding of the contract worth almost a Billion of Pesos to a privately-owned Filipino corporation called Datatrail, probably little did he knew that this Datatrail company’s net worth currently is only about PhP 1-Million peso corporation and an ‘Outsider’ who did not even participate the bidding stages 1 & 2, will be getting the lion’s share the 90% of the profit, this is absolutely stunning very controversial MONKEY BUSINESS ! This confirms huge irregularities. The benefits of an open bid are that it is easier to uncover any unethical behavior among the bidders (and DND BAC) and if there were violations committed during the bidding. With Substance: this is very strong material against DND BAC, by law, allowing a small time just worth a million peso private company Datatrail to bag billions from AFP Modernization Program, is extremely illegal and extremely questionable ! This defeats the purpose of IRR of RA9184, a government standard set for a level playing field Open Competitive Bidding, there are rules the non discretionary pass/fail criteria had to be followed. The DND BAC indeed GROSSLY FAILED to do what was right, failed to perform and execute their primary duties and functions by virtue of the powers vested in them by Republic Act 7160 otherwise known as the Local Government Code of the Philippines and pursuant to Rule V of the Implementing Rules and Regulations (IRR) of Republic Act 9184 otherwise known as the Government Procurement Reform Act. Spefically Nos.

3. Determine the eligibility of the prospective bidders: Datatrail made exempt from submission of their Elegibility Class ‘A’ documents — another event of a situation which can be interpreted as an act of corruption.

4. Receive bids: Datatrail did not participate the Bidding Stages 1 & 2 — another event of a situation which can be interpreted as an act of corruption.

5. Conduct the evaluation and opening of bids: An open bid is a bid that is available for all other bidders to see and possibly act upon. These bids may be done through a traditional live bidding, i.e., all bids are open because all bidders can hear or see the offer being made. The benefits of an open bid are that it is easier to uncover any unethical behavior among the bidders. Here, since this was supposed to be an Open Bidding (alternative term for Open Competitive Bidding) yet Datatrail’s documents were never evaluated by DND BAC in front of the other bidders. MEETING OF THE MINDS: The supplier Datatrail were there but did not participate the submission of Bids and the DND BAC continuously tolerated and FAILED to disqualify Datatrail in any of the bidding stages. Here, visibly and manifestly that there’s state of cooperation and harmony of actions or characters between Datatrail and DND BAC, apparently both have the mutual understanding of the terms of their secret agreement — another event of a situation which can be interpreted as an act of corruption.

6. Undertake post-qualification proceedings: It was during this stage when Ceragon Networks announced that they were ‘actually in JVA’ with Datatrail. Immediately after the announcement, DND BAC awarded the contract to Datatrail, no questions asked ! This is ILLEGAL because Datatrail was merely acting as an ‘Outsider’ during the entire bidding Stages 1 & 2, their papers were never examined. In fact, DND BAC’s record showed the ONLY shortlisted names of the four bidders were: Alcatel, Lucent, Ceragon and Nera. Datatrail was never included in their shortlist — another event of a situation which can be interpreted as an act of corruption.

8. Recommend award of contracts to the head of the procuring entity or his duly authorized representative: Here, DND BAC instantly awarded the contract to Datatrail simply because of that single piece of paper called JVA with Ceragon, no questions asked ! ; a clear violation of IRR of RA9184 that states EACH MEMBER of the JVA MUST SUBMIT (and PASS !) ALL the Eligibility Class ‘A’ Documents for EACH MEMBER of the JVA to become eligible to Bid. Otherwise, continuously hiding their documents sends a very strong signal that one or more members INCOMPETENCE — and another event of a situation which can be interpreted as an act of corruption.

9. Responsible for ensuing that the procuring entity abides by the standards set forth by the Government Procurement Reform Act and its Implementing Rules and Regulations-A: Here, DND BAC absolutely failed in their responsibilities to be firm, comply with and act according to the standards set forth by law IRR of RA9184. They awarded the contract to Datatrail, a supplier without documents even a simple Class ‘A’ eligibility document issued by NTC the Certificate of Accreditation or Dealer’s Permit the Datatrail has NONE — another event of a situation which can be interpreted as an act of corruption, very clearly DND BAC and these suppliers grossly violated public trust and IRR of RA9184 standards !

Combating Corruption: Pandora’s Box

What the Concerned Reader, Raissa Robles, gathered in SEC was the tip of the iceberg, Ms. Robles and other Concerned Readers hope you bring this to the right agency or body for their attention and action TO STOP THE PAYMENT IMMEDIATELY; there’s massive irregularities during the conduct of bidding process why an ‘Outsider’ supplier Datatrail Corp. and Ceragon Networks with defective JVA was able to bag the AFP Fixed Communication System (FCS). Further investigations into key documents missing (Eligibility Class ‘A’ Documents missing) from DND BAC files could unearth a can of worms, grounds for blacklisting these fraud companies and individuals involved be held liable the cases could range from syndicated estafa, large scale estafa and falsification of public and commercial documents and graft and corruption charges.

Corruption Rackets Like ZTE/NBN Deal Scam

With this defective JVA paper, vendor Ceragon Networks can also be found guilty liable of advocating crimes, culpable as an accessory to unlawful acts as we find Ceragon Networks, here boldly supporting a culture of graft and corruption, the collusion to commit fraud, here evidently hosting the unlawful, massive irregular business activities in the Philippines.