Duterte order curbs defense chief’s power on contracts

President Duterte has signed an executive order directing the Secretary of National Defense (SND) to institute measures to monitor separate bids and awards committees to speed up defense procurement processes slowed down by “bureaucratic impediments. ”

Mr. Duterte signed Executive Order No. 18, repealing EO No. 235 that was issued by then President now Pampanga Rep. Gloria Macapagal-Arroyo in 2003 in line with her then administration’s campaign for good governance.

President Duterte said that EO No. 235 had “limited” the Defense Secretary’s authority to delegate approvals of procurement contracts.

The Arroyo executive order also established a single Bids and Awards Committee for the Armed Forces of the Philippines (AFP).

“It has been observed that the implementation of EO No. 235 resulted in bureaucratic impediments and unnecessary delays in the procurement of important defense projects,” Mr. Duterte’s executive order said.

“The Secretary of the Defense is hereby mandated to identify and institutionalize measures that will effectively monitor the operations of the separate Bids and Awards Committees which may be created pursuant to RA No. 9184 (Government Procurement Reform Act of 2003), to ensure and promote transparency, impartiality, and accountability in procurement transactions,” it said.

EO 235 actually allowed the Defense Secretary to approve contracts of the Department of National Defense (DND), its bureaus and attached agencies that are below P50 million “as he sees fit under the circumstances,” except if the contract is required by law to be approved by the President.

The executive order also allows the AFP chief of staff to sign contracts for the military below P50 million.

The Philippine military is considered as one of the weakest in Asia.

The Aquino administration had focused on building an AFP with a “minimum defense credibility,” acquiring refurbished warships and brand new jets while the military slowly shifted to territorial defense, its original mandate, before its decades-long focus on internal security operations.