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MANILA, Philippines — Thousands of four-wheel tractors purchased last year by the previous management of the Philippine Center for Postharvest Development and Mechanization (PHilMech) have been found to be “overpriced.”
The PHilMech, an attached agency of the Department of Agriculture (DA), has uncovered irregularities in the procurement of 1,346 units of four-wheel farm tractors, which were purchased for P1.298 million each or a total of P1.75 billion.
However, the new management of PHilMech discovered the price for each four-wheel farm tractor should have not exceeded P1.2 million.
This means that PHilMech paid an additional P98,000 for each tractor or a total of P131 million more to acquire 1,346 units of the four-wheel tractors under the Rice Competitiveness Enhancement Fund (RCEF)-Mechanization Program fund for 2021.
Probe underway
PHilMech has already informed the Department of Budget and Management of the alleged irregularities and has sought the legal advice of the Commission on Audit and the DA. Separately, PHilMech told the Inquirer in an email that a probe is underway.
“Because of the agency’s findings, PHilMech will not pay the contractors as we uncovered an overprice for each four-wheel farm tractor,” said Dionisio Alvindia, executive director of PHilMech.
The alleged irregularities were discovered after Alvindia assumed office in March this year.
Amid the acquisition irregularities, PHilMech assured that the distribution of farm equipment under the RCEF Mechanization Program and the support for programs including the Coconut Farmers and Industry Development Plan would continue.
P5-B annual budget
PHilMech is allotted P5 billion annually for six years to acquire and distribute farm machinery and equipment to eligible farmers cooperatives and associations for free.
The fund is taken from the RCEF, or the rice fund, which has an annual budget of P10 billion also for six years.
Such provisions are spelled out in the Rice Tariffication Law, which aims to improve the competitiveness and income of rice farmers amid the liberalization of the rice market.
PHilMech, meanwhile, has started setting up the Agricultural Machinery Design and Prototyping Center in its headquarters in Muñoz, Nueva Ecija, in collaboration with the Korea International Cooperation Agency, Korea Institute for Development Strategy and the Korea Agricultural Machinery Cooperative.
“We also assure that PHilMech will continue to be at the forefront of developing and commercializing farm technologies that will significantly help farmers and the disadvantaged groups in the country’s agriculture sector to cope with the challenges of globalized markets and climate change, among others,” Alvindia said.
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