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DND committee formed to review termination of contracts


MANILA, Philippines - The Department of National Defense has formed a committee that will review the possible termination of problem-ridden contracts.
Defense Secretary Voltaire Gazmin said the Contract Termination Review Committee will look into acquisition contracts, worth P50 million and up, which are facing delays in implementation.
 
The committee will then recommend to the head of the procurement entity, such as the Armed Forces of the Philippines, to terminate a contract if needed. 
 
DND spokesman Peter Paul Galvez said: "For example, there is a problem in the process of delivery of the project, the Contract Review Termination Committee can check where the problem lies. Is the problem on the contract?”
 
"What indeed happened? Is it the fault of the contractor? What is important, is there is going to be a delivery of the project, whatever the project is…It will look into the problems and if there is really a need to terminate the contract or not," he added.
 
If a contract is terminated, the government will ensure that it will be offered anew to contractors, he said.
Asked if there are problematic contracts at present, he said: "There are a few but I don't specifically [know which ones].”
 
On whether some of the contracts were entered into during the Arroyo administration, Galvez said: "I am not sure. That I have to check on which contract that will pass through that (committee).”
 
Fernando Manalo, the DND's Undersecretary for Finance, Munitions, Installations and Materiel, is the chairperson of the committee. DND Assistant Secretary for Acquisition, Installation and Logistics Patric Velez, on the other hand, is the vice chairman. 
 
Its members are DND Assistant Secretary for Comptrollership Ernesto Boac, and DND Legal Affairs Office chief Cherrie Belmonte-Lim.
 
Its provisional members include the AFP deputy, the Office of Civil Defense administrator, Philippine Veterans Affairs Office administrator, Government Arsenal director, Veterans Memorial Medical Center director, and the president of the National Defense College of the Philippines. 
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