CoA audit report confirms P1.89B Mahindra patrol vehicles purchased by PNP in 2015 were defective

All we taught the lists of all scandals and mess done under the administration of former President Benigno Aquino III cannot be more be made longer, we were 100% wrong.

This is a modernization of a government agency gone wrong for all the corrupt reasons.

The Commission on Audit (CoA) made public its report that the 2,054 patrol vehicles purchased in 2015 by the Philippine National Police (PNP) for 1.8 billion were defective.

COA report found the PNP purchased patrol cars worth P1.89B are defective (photo credit to Rappler)

The 2017 PNP consolidated annual audit report, confirms the CoA findings , stating that numerous complaints against the India- made Mahindra patrol vehicles by its survey of the different PNP regional offices.

The complaints varies from, problems on high fuel consumption, difficulty in acceleration at higher speed, tough maneuverability due to the vehicle’s narrow body, low engine performance, heavy smoke emission, limited interior space, absence of service centers, lack of spare parts and others.

All in all there were 2,054 patrol vehicles, 398 were purchased through the PNP National Headquarters Bids and Awards Committee (NHQ-BAC), while the bulk of 1,656 were acquired through the usual Procurement Service – Department of Budget and Management).

The CoA report said Columbian Autocar Corporation (CAC) won the bid contract o supply vehicles in 2015, the chief PNP then  was retired Deputy Director-General Leonardo Espina.

The report found out that the PNP had paid but had not received after more than 2 years, light personnel carriers , utility trucks, and other combat assets worth P1,347,616,452.90 it procured from the Philippine International Trading Corporation (PITC).

The same reports states that the amount was for the purchase of 42 utility trucks and 11 other line items worth P1.009 billion, six light personnel carrier and 17 other line items worth P101.1 million, four units of Integrator and three other line items valued at P70.08 million, 12 automatic grenade launcher and 15 other line items costing P156.7 million, and 3,300 units of Poncho and four other line items worth P10.48 million.

“Since 2016, when the fund transfers [payments] were made, none of the required items had been delivered as of December 31, 2017,” CoA said.

The audit report said that the PNP still under obligation to pay PITC service fees totaling P23,904,722.15 or one to four percent of the Approved Budget for the Contract (ABC) plus 12-percent value-added tax upon delivery of the combat assets, all of these despite a 2 year delay.

The CoA has recommended to the PNP to require the PITC  to refund the total advance payments of P1.347 billion for deposit to the National Treasury and to “refrain from availing (of) the services of the PITC unless extremely necessary.”

CoA found out that the Mahindra procurement was done without first conducting an operational needs assessment which “pushed back the full attainment of the objectives of the PNP’s capability enhancement program (CEP).”

“About four months after the delivery and issuance of the Mahindra Enforcers in May 2015, there were numerous complaints received from the end-user units regarding problems noted on the use of the Mahindra Enforcer patrol jeeps and the inability of the CAC to provide fast moving spare parts necessary for the required repair and maintenance procedures of the vehicles as mentioned in the letter dated February 24, 2017 from the ODL [Office of the Directorate for Logistics] addressed to the PS-DBM,” CoA said.

With mounting complaints, the PNP still purchased 398 light transport vehicles, the CoA said.

“The [additional] procurement therefore raised questions with regard to the decision made by the [PNP] management considering that months before the public bidding conducted in the National Headquarters in December 2015, the PNP has been aware of the current defects of the earlier delivered Mahindra Enforcers,” the report said.

The audit reports stressed that these defects “should have been a warning to take a second look on the capability and reliability of the Mahindra manufacturer and the vehicles themselves knowing that the end-users encountered mechanical defects and the limited availability of spare parts not to mention its prohibitive maintenance cost,”.

The CoA report found out that 731 or 57.2 percent of the 1,278 survey respondents were unsatisfied with the Mahindra vehicles’ overall performance.

“The respondents, who were the end-users of the vehicles, [were] comprised mostly of drivers who are also police personnel, responsible supply police non-commissioned officers, supply accountable officers (SAOs) and other PNP personnel who have direct use or have actual experience using the patrol vehicles and can readily provide factual responses,” CoA said.

Further the Audit report found out that the PNP incurred additional costs of P53,379,200 in service fees by procuring the 1,656 Mahindra Enforcers through the “PS-DBM which it could have used to procure additional 67 units mobility assets at P873,600.00 per unit or utilized it as part of the ABC of high-capacity patrol vehicles which could benefit the whole police force.”

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Report from The Manila Times