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Lapus, 11 others charged in noodle scam

By Kristine L. Alave
Philippine Daily Inquirer
First Posted 06:30:00 08/27/2010

Filed Under: Graft & Corruption, Food and Diet and Nutrition, Education

MANILA, Philippines?The Office of the Ombudsman has filed charges against former Education Secretary Jesli Lapus and 11 others in connection with alleged overpricing in the P350-million instant-noodles purchase for the Department of Education?s (DepEd) school-feeding program in 2007 and 2008.

Assistant Ombudsman Jose de Jesus Jr. said the Field Investigation Office (FIO) found probable cause to investigate Lapus, six other former DepEd officials and supplier Jeverps Manufacturing Corp. for graft.

The other respondents are former DepEd bids and awards committee (BAC) chair Undersecretary Teodosio Sangil Jr. and officer in charge Ramon Bacani; current BAC vice chair Demetria Manuel and members Nanette Mamoransing, Macur Marohombsar and Artemio Capellan Jr.; and private respondents Alexander Billan, Gil Quenano, Lino Ong, Teresita Parco and Terencio Taloma , all of Jeverps.

The 12 were charged with violating the Anti-Graft and Corrupt Practices Act, Government Procurement Reform Act and Consumers Act of the Philippines.

Dishonesty, etc...

The public officials are also facing a parallel administrative investigation for dishonesty, grave misconduct, conduct prejudicial to the best interest of the service and gross neglect of duty.

The FIO recommended the DepEd officials be placed under preventive suspension pending the case's resolution.

The case stemmed from the purchase in 2007 of 16,495,718 100-gram packs of ?Fortified Instant Noodles with Fresh Eggs? for the DepEd feeding program. The contract price with Jeverps was P283.6 million.

The DepEd put in another order in 2008, this time for 3,837,600 packs of the same noodles costing P66.6 million, also with Jeverps.

In a 23-page affidavit, the FIO said the two biddings were riddled with irregularities.

The most glaring was that Jeverps was allowed to bid and win the contract despite being under suspension by the Bureau of Food and Drugs (BFAD).

?Investigation reveals Jeverps? license to operate issued by the Bureau of Food and Drugs on May 21, 1996, was suspended by BFAD by virtue of two cease and desist orders issued on Jan. 24, 2007, for violation of RA 8976 (Food Fortification Law) and on Feb. 28, 2007, for violation of Administrative Order No. 153, (Revised Guidelines on Current Good Manufacturing Practices),? the affidavit said.

No eggs

?The cease and desist orders have not been lifted up to the present for Jeverps? failure to settle the administrative fine of P300,000 imposed by the BFAD,? it added.

The FIO also noted that tests conducted by the Societe Generale de Surveillance revealed the sample noodles submitted by Jeverps did not contain eggs in any form.

The DepEd did not specify how the eggs were to be incorporated into the noodles, leading to different items being on the procurement plans, the FIO said.

The Ombudsman also noted that the DepEd did not independently test the noodles supplied by Jeverps, preferring to rely on the company's test conducted by a private firm.



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