GOTCHA, Published in The Philippine Star, Friday, February 22, 2008
Our NEDA insider analyzes the $330-million DOTC-ZTE contract that the admin claims is above board. Several violations of government contracting rules and compliance deficiencies are spotted. This, in addition to outright overprices in Equipment and Services (Gotcha, 18,
The ZTE contract differs from internationally accepted and widely used FIDIC procurement standards and forms. Token inclusions of some contract parameters are at best spotty, and pale in comparison with FIDIC procedures (even compared with Northrail contract provisions).
FIDIC is (French acronym for) International Federation of Consulting Engineers. Founded in 1923, it consists of national unions of consulting engineers from over 60 countries, including
Deficient documentation, performance and payment securities
The contract contains provisions whose performance measurements will be difficult to ascertain during implementation. A side comment: ZTE contract differs in form and substance from the similarly funded Northrail. A textual comparison shows wide divergence in documentation of engineering, technical, financial and implementation aspects of the project. Northrail appears transparent in contract provisions; its civil works and equipment pricing is another matter, however.
A glaring deficiency in the ZTE deal is the provision on “Conditions Precedent” prior to implementation — absent in the Northrail contract. The impression is that the contract was rushed; or else, conditions precedent would have been excluded.
Opaque, impaired contract documentation
• Contract attachments are missing: NEDA clearance to adopt direct procurement method for a project costing more than P500 million; DOJ opinion and presidential authority to adopt such direct procurement; submission by ZTE and receipt by DOTC of bid proposal (technical and financial); signed minutes or records of DOTC-ZTE contract negotiations; initialed draft contract and final attachments; prior clearance and authority from the President to sign ZTE contract through direct procurement above P500 million; DOTC official notice and ZTE acceptance of contract award.
• Major provisions need detailing and reformulating: scope of work, technical specs and unit price analysis of Equipment cost; same with Engineering Services (preliminary and detailed designs, procurement plan, implementation schedule); scope of work and verifiable, measurable performance standards, and activities and prices for Managed Services; scope of work, prices and measurable units for Training; consistency of terms and contract definitions.
• Provisions on risks and responsibilities need clarification, deletion or reformulation: equipment delivery, handling, turnover, acceptance and on-site testing; during implementation of Managed Services; defects’ liabilities and manufacturer’s warranties in relation to valuation and releasing of Performance Security;
• Not submitted before signing were: 5-percent performance bond; documents required in Sec. 4.1 as contract attachments.
• Missing is one basic: 15-percent ZTE security advance payments for Equipment cost, and Engineering, Managed and Training Services.
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A day after Sec. Romy Neri was quoted as describing his President Gloria Macapagal Arroyo as evil, the Cabinet staged a “unity walk” photo-ops. Videoed side by side up front were Neri and GMA. Political observers wonder: which of the two is practicing Sun-Tzu’s advice to keep your friends close and your enemies closer?
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Showing at the CCP is a play about two modern-day heroes with the same initials who died for country like Emilio Jacinto. Edgar Jopson and Evelio Javier never met in real life, but theirs was a shared struggle and sacrifice against oppression and for democracy. Taking different paths — Javier pursued gradual reforms while Jopson waged armed rebellion — both met violent death.
“EJ”, a rock musical, puts Jopson and Javier in imaginary debate over what was the better route to change. Played respectively by Jett Pangan and Ricky Davao, Jopson and Javier carve out lives as student activist-turned-underground leader and the country’s youngest ever governor (of godforsaken Antique province). Both are born well to do, but one sets out to organize unions to fight Marcos, the other, peasants, for the same cause. Their valor costs them their lives in the hands of the dictator’s brutes.
Playwright Ed Maranan was himself in Marcos’s political prison when he wrote a Palanca award-winner. Stella Cañete and Tex Ordoñez play Precious Javier and Joy Jopson, with the famous Dawn Band performing “EJ” original music and their own hits. Chris Millado directs. Showings on Fridays, Saturdays and Sundays at
Though some sequences need tightening, this does not distract First-Quarter Storm audiences from reliving their trying, exciting times. Youths will perhaps find in “EJ” clues to their generation’s impending big battle.
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