Press Release
May 17, 2009

NIA CANCELS ANOMALOUS P1.4-B HEAVY EQUIPMENT CONTRACT
LET'S RESTORE PEOPLE'S TRUST IN GOV'T -- ROXAS

The National Irrigation Authority (NIA) has complied with a demand from Liberal President Senator Mar Roxas that it cancel P1.4-billion supply contracts it awarded through a bidding riddled with irregularities.

NIA Administrator Carlos Salazar submitted to Roxas a resolution by the agency's Bids and Awards Committee (BAC) terminating all further procurement activities for 139 units of 0.8-cubic meter capacity hydraulic excavators, 69 0.5-cubic meter capacity heavy excavators and 15 truck tractors with trailers costing a total of P1.4 billion.

Salazar announced the cancellation of the contract after Roxas exposed irregularities in the bidding process that allowed the two winners to get the supply contracts although their prices cost P300 million more than the lowest bidder.

The Senate referred Roxas' expose to the Blue Ribbon Committee for investigation, but NIA announced it was canceling the contract even before the probe started.

"Kailangang ibalik natin ang tiwala ng taumbayan sa gobyerno. Punong-puno na ang lahat sa mga anomalyang nangyayari sa lahat halos ng proyekto ng gobyerno," Roxas said.

The Visayan senator stressed that the NIA could go ahead and conduct a re-bidding for the said heavy machineries, but only after it has made sure that, this time around, their bidding process would be fair and the final cost to the government would be much lower than retail prices.

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