COA points out irregularities in CHEd’s textbook deal
By Jerry E. Esplanada
Philippine Daily Inquirer
First Posted 00:05:00 01/08/2008
Filed Under: Education, Graft & Corruption
MANILA, Philippines -- The Commission on Audit has deemed as irregular, unnecessary, excessive and extravagant the P120-million worth of textbooks procured by the Commission on Higher Education (CHEd) and distributed to over 100 state universities and colleges nationwide.
The COA, in a 2007 national government sector report, a copy of which was obtained by the Philippine Daily Inquirer, said the CHEd textbook procurement project also did not go through the usual public bidding as required by Republic Act No. 9184 (or the Government Procurement Reform Act).
Worse, "most of the books delivered did not match the priority needs of the students and faculty since they were not the ones required and prescribed (by the respective SUCs)."
"Without being guided by the required need assessment," the purchase resulted in "unnecessary and excessive inventory of SUC library books," the COA report also said.
In making their observations, state auditors cited COA Circular No. 85-55A (dated September 8, 1985) which stated that "government funds and property should be protected and conserved and that irregular, unnecessary, excessive or extravagant expenditures or uses of funds and property should be prevented."
Some CHEd oldtimers called the book deal "probably one of the largest giveaways in CHEd history like the Congress' pork barrel appropriations" and "proof that some CHEd officials are fiscally and morally out of control."
They also noted the controversial project was "not just a scandalous exception but has become indigenous" to the Pasig City-based commission.
The textbooks were part of what militant teachers and other CHEd critics called a "sweetheart deal" between Carlito Puno, when he was still CHEd chairman, and the Philippine Association of State Universities and Colleges or PASUC.
The books were printed by just a single firm -- Trinitas Publishing Inc., a private book company based in the village of Pantok, Meycauayan, Bulacan.
Trinitas Publishing owner Ma. Trinitas Farrales-Canlas, also founder and president of Trinitas College, was said to be a CHEd consultant during Puno's term.
Like Puno, now head of the government-sequestered Coconut Chemicals, Inc., both Canlas and Trinitas Publishing president Danilo Malabonga had yet to respond to this reporter's repeated requests for an interview.
Many Trinitas-printed books have been "gathering dust in an undisclosed number of state-run colleges and universities," according to reports reaching the CHEd headquarters.
"Apparently, many of those textbooks have remained unused since their delivery last year (2007) ... We can't really blame those SUCs. They never asked for those books in the first place," pointed out a top CHEd executive who asked not to be named.
Each SUC was given a total of 3,891 copies of 29 textbooks (134 to 136 copies per book title) worth, believe it or not, exactly P1 million.
The textbooks, said to be written by instructors of PASUC member-schools in Central Luzon supervised by Puno, were classified under four topics.
Listed under "language and literature" were 13 book titles (with their respective price per copy and total price): Ang Ating Panitikang Pilipino, P309/P42,024; Effective Speech Communication in Various Situations, P266/P35,644; Speech for Effective Communication, P238/P31,892; Research and Technical Writing, P263/P35,242; Effective Writing, P250/P33,500; Effective Study and Thinking Skills, P191/P25,594; World Literature, P315/P42,210; Sining ng Mabisang Komunikasyon, P252/P33,768; Pagbasa at Pagsulat sa Iba't-Ibang Disiplina, P232/P31,088; Retorika: Mabisang Pagpapahayag sa Kolehiyo, P192/P25,728; Philippine Literature, P333/P44,622; Technical Writing and Reporting, P279/P37,386, and Basic Communication and Thinking Skills, P265/P35,510.
There were eight "mathematics and natural sciences" textbooks: Fundamentals of Probability and Statistics for Engineering, P200/P26,800; Simplified College Algebra, P301/P40,334; Simplified Analytic Geometry, P301/P40,334; College Algebra, P234/P31,356; Plane Trigonometry, P226/P30,510; Fundamentals of Environmental Science, P152/P20,368; Basic Concepts of Biology, P273/P36,582, and Laboratory Manual in Zoology, P153/P20,502.
There were four "humanities and social sciences" textbooks: Man, Values and Work Ethics, P209/P28,000; General Sociology, P279/P37,665; Basics of Logic, P215/P28,810, and Values and Work Ethics, P309/P41,715.
There were also four textbook titles listed under "mandated subjects": Discourses on the 1987 Philippine Constitution, P348/P46,632; Fundamental Statistics, P288/P38,592; Philippine Government and Constitution, P252/P33,768, and Introduction to Information Technology, P327/P43,818.
Quoting some SUC librarians, the COA said "most of the textbooks delivered were duplications of previous deliveries made by Trinitas."
The deliveries were "also observed to be in excessive quantity such that libraries have no (extra) space to accomodate them all."
The COA also questioned a provision in the book deal's Memorandum of Agreement (MOA) that required students to "rent the books for 50 percent of their cost."
SUC librarians told the COA that "it is not feasible...and students would prefer to have the available copies (of the same books available) in the library and have them photocopied."
"Moreover, the textbooks are of newspaper print and are not durable compared to other textbooks acquired from various bookstores," according to the COA.
Another COA report said "there was a slow inventory turn-over of these textbooks due to the availability of similar or alternative textbooks in the SUC libraries that can be used for free."
"Deficiencies were noted in the handling and custody of these textbooks which may result in wastage of government funds," said the same report.
Government auditors also referred to the MOA stipulating Trinitas Publishing Inc. as the sole and exclusive distributor of PASUC books as a "questionable transaction."
"Besides the certification designating Trinitas Publishing as the exclusive supplier of the textbooks, there were no documents to prove that what (Ched and PASUC) obtained were the most advantageous terms to the government," said COA.
According to COA, "these conditions should exist before direct contracting or other alternative modes of procurement is resorted to."
The same MOA also called for a "package of benefits for all those involved in the development" of the project: 15 percent royalty to the faculty writers of the textbooks, another 5 percent for the SUC and 2 percent PASUC share for administrative and other project-related expenses.
Some Ched oldtimers wondered how Trinitas Publishing came up with the textbook deal's total price tag of exactly P1 million for all the 29 book titles. "Whoever did the math must have been a purchasing or costing wizard," quipped a Ched executive.
In their June 2001 executive general assembly in Batac, Ilocos Norte, "book writing and production of instructional materials," among others, were specifically identified by the PASUC as "doable key strategies for effective instruction and resource generation."
The following year, PASUC formally launched what it called the Knowledge-based Instructional Materials Development, Book-Writing and Publication Project which aimed to "develop learning resource materials to be written by PASUC faculty members."
According to Ched insiders, the project was endorsed by former commission chairs Ester Garcia and Fr. Rolando de la Rosa.
When interviewed, Garcia clarified she "only approved the instructional materials project" during her term as Ched chair (1999 to 2003).
"But I have nothing to do with the Ched-Trinitas deal," emphasized Garcia, now president of the University of the East.
Trouble started in 2002 when Trinitas Publishing entered into a partnership agreement with the PASUC, said Ched insiders.
The deal supposedly aimed to make the publishing company an "effective vehicle for SUC entrepreneurial activities in generating funds for their development while fostering quality and excellence in public higher education institutions."
"Shortly afterwards, Trinitas started forwarding the textbooks to the SUCs on a consignment basis. The problem is walang bumili [nobody bought the books]. Namamahalan daw [Schools found them too expensive]. Then there were reports of ungrammatical sentences and other errors in some of the books...So pinagsosoli ng mga SUC [So the SUCs returned the books]," recalled a Ched official.
Philippine Normal University president Lutgardo Barbo confirmed the official's disclosures.
"It was an imposition," noted Barbo, also PASUC chair for Metro Manila.
According to the former Eastern Samar governor, "the PNU was then under the helm of ex-president Nilo Rosas (now Professional Regulations Commissioner). He told me they returned the textbooks. He said, ‘di ko naman kailangan mga ganyan klaseng libro [I don’t need those types of books]."
"If I were in Nilo Rosas' place, I would have done the same thing. Halimbawa, bibigyan kami ng librong pang-agriculture [For example, if they give us books on agriculture], why would our school accept that? PNU specializes in education. Tapos bibigyan ka ng kung ano-ano na di mo naman kailangan [Then, they would give us books we don’t need]," asserted Barbo.
Barbo said the Ched "should have at the very least given us a chance to identify our needs, instead of ramming things down our throats. I'd probably tell those people behind the project, okay, you're giving us P1 million. Give us the money and we'll buy what we need instead of imposing on us."
At least two other SUC heads, who asked not to be identified, expressed the same views to the Inquirer.
During the Ched's 271st en banc meetings on Feb. 27 and 28, 2006, Puno and Commissioners Saturnino Ocampo Jr., Luningning Misuarez-Umar, Nenalyn Defensor and Ricafort agreed to allocate at least P100 million in what the agency calls Higher Education Development Funds for the PASUC project.
On April 24, 2006, the five Ched top officials issued Resolution no. 289 reaffirming the agency's intention to provide P100 million in "financial assistance to the Knowledge-based project of PASUC."
In the same resolution, the Ched also approved the release of commission funds to four other projects: P1 billion for various college scholarship programs; P300 million for the construction of SUC call center buildings; P100 million for the purchase of computer units for SUC internet cafes; P50 million for the Jatropha/biofuel crops project.
(In October, Neri stopped the P550-million controversial call center project pending the results of an investigation on alleged fund anomalies involving Puno and the agency's Bids and Awards Committee.)
The textbook project funds were supposed to be granted to SUCs assigned to Puno and the four commissioners.
However, an undisclosed number of SUC presidents refused to avail of the P1 million grant-per-school when they learned that the project did not undergo any bidding process and that they would be required to issue the check to Trinitas Publishing in exchange for the textbooks.
Except for the Surigao del Sur Polytechnic State College and the Eastern Samar State University, 19 other SUCs under the supervision of Commissioner Nona Ricafort did not avail of the Ched grant.
All 21 SUCs assigned to Puno, as well as those being supervised by Ocampo (25), Umar (23) and Defensor (21) accepted the grant.
The unused funds intended for Ricafort-supervised SUC were added to those under Puno.
Ricafort declined comment on allegations that she turned down a P7-million bribe from Trinitas. But she confirmed not endorsing the book deal for the SUCs under her.
The three other commissioners did not return the INQUIRER's calls.
Garcia disclosed there was a "proposal for me to endorse Trinitas books but I said no way. That's not my style."
Barbo knew "there's some corruption (associated with the book deal). I was informed about it."
Both the militant Alliance of Concerned Teachers and the League of Filipino Students (LFS) have assailed the Ched for allegedly dispensing commission funds without rhyme or reason and the irregularities surrounding the Trinitas book deal.
ACT chair Antonio Tinio called for a "thorough investigation of yet another anomalous transaction undertaken by the CHed under the stewarship of Puno and the filing of charges should it be shown that the law on government procurement was violated."
At the same time, ACT dared Ched acting chair Romulo Neri to "curb all the excess and other wasteful practices" by the commission.
Neri, tasked by President Macapagal-Arroyo to troubleshoot the Pasig City-based commission, has yet to look into the controversy.
According to Ched oldtimers, the P120 million-plus spent on Trinitas textbooks may represent only a small percentage of the Ched annual budget, but it is "clearly a sign of government waste."
"It's an indication of how spending has become out of control here at Ched...Worse, taxpayers had to pick up the tab for what appears to be self-serving projects like the Trinitas book deal," said a Ched executive.
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