Solons slam Duty Free Philippines over HK deals

Lawmakers on Tuesday slammed officials of Duty Free Philippines Corporation (DFPC) for entering into concession agreements with foreign entities – all Hong Kong-based suppliers – for the supply of merchandise worth billions of pesos.

Reps. Mikee Romero (Pacman Partylist), Rodel Batocabe (Ako Bicol Partylist), and Eugene de Vera (ABS Partylist) warned DFPC officials that they may be held liable for violation of the Retail Trade Law and Republic Act 9184 or the Procurement Act which carry heavy penalties for dealing with foreigners.

During the congressional inquiry into allegedly anomalous contracts involving DFPC official, Romero also chided the state-run firm for dealing with Jose Ma. Esteban III, who represents one of the foreign companies.

Esteban was the first general manager of DFPC who was appointed to the post in 1987. He served the retailer of imported products until 1992.

“I think there is conflict of interest here. I don’t think he should in any way be doing business with duty free,” said Romero.

Current DFPC officials, headed by Vicente Angala, chief operating officer, and board members, were present during the hearing presided over by Camiguin Rep. Xavier Jesus Romualdo, chairman of the House Committee on Good Government.

Asked if DFPC may have violated the Retail Trade Act for awarding the Hong Kong firms with huge “supply and delivery agreements (SDA),” lawyer Carlo Castilo, the firm’s lawyer, replied that this is possible.

“Everytime you enter into such SDA, these will be considered recurring criminal acts. You have to be very careful about these because you can be implicated,” Romero told the DFPC officials.

Batocabe said the firm’s executives have admitted that there was indeed no bidding conducted when the DFPC awarded the SDA to the firms.

The party-list lawmaker stressed that aside from violating RA 9184, there is a possibility that graft charges may be in play because the contracts were clearly disadvantageous to the government.

“These are foreign-owned firms that are operating outside the country. How can we sue them in case there are serious violations they committed in the contract,” stated Batocabe.

De Vera backed Batocabe’s statement, saying that foreigners are disqualified from entering into supply and service deals with government agencies.

Responding to the observations made by lawmakers, Angala said the Office of the Government Corporate Counsel was consulted about the contracts and did not interpose any objection.

Nevertheless, he assured the House panel that the issues raised will be studied carefully.