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Lina suffers double whammy

By JAKE SORIANO

PRESIDENT Aquino’s reversal of Alberto Lina’s decision on the balikbayan box issue was not the only trouble the customs chief found himself in on Monday.

A trial court in Manila the same day also ruled against the Bureau of Customs’ (BOC) cancellation of the P650-million contract for an integrated customs processing system meant to streamline the import and export processes in one of the most graft-ridden agencies of government.

The court said the cancellation constituted abuse of discretion and ordered the BOC and the Budget Department to proceed with the project, while prohibiting them from initiating any other procurement or negotiations.

Lina, barely two weeks after he was appointed BOC Commissioner on April 24, 2015, ordered the cancellation of the contract won by the joint venture of Omniprime Marketing Inc. and Intrasoft International Inc, citing findings of the project’s review.

Lawyer Harry Roque, whose firm represents the petitioners, holds a copy of the court decision. (Photo by JAKE SORIANO)
Lawyer Harry Roque, whose firm represents the petitioners, holds a copy of the court decision. (Photo by JAKE SORIANO)

He said given the changes in market conditions, there could be other customs data systems that are more efficient, cost-effective and advantageous to the government.

But a representative of the joint venture, Anabelle Margaroli, told the court it was a case of conflict of interest as Lina owns 96.47 percent of E-Konek, one of the disqualified bidders for the same project they had won.

E-Konek, she added, is at present a service provider that serves as an intermediary between the BOC and the transacting public, and collects fees for every transaction.

Judge Paulino Gallegos ruled that the rights of Omniprime-Intrasoft “have been duly and unfairly violated by the sudden cancellation” of the project.

The court decision also referred to the urgency of the commitment of the Philippines to ASEAN, which it said “has been further delayed by the cancellation… which negatively affects our international relations.”

The Philippines back in 2005 agreed, along with other members of the Association of Southeast Asian Nations, to establish an ASEAN Single Window (ASW), a system that would connect the National Single Windows (NSW) of member states, thus expediting cargo clearance procedures.

Said streamlining to ensure the smooth flow of goods is a crucial commitment of the Philippines to ASEAN in the context of its economic integration.

The Philippines completed the first phase of its NSW in October 2010, but the system remained tedious. In October 2014, the BOC invited bidders for a second phase of the project, with an approved budget of P650 million. Five bidders submitted their eligibility documents.

In December, only the joint venture of Omniprime Marketing Inc. and Intrasoft International Inc. was declared eligible by the Department of Budget and Management. Contract negotiation subsequently began, until Lina, last May 6, or shortly after he was named commissioner, decided to abandon the project.

Omniprime-Intrasoft sued both the BOC and the DBM, arguing that the cancellation was without basis, constituted grave abuse of authority, and would “perpetuate the inefficient system sought to be reformed by the project.”

The respondents, which include Lina, sought to dismiss the case by arguing that only the Supreme Court can temporarily restrain cases involving national government infrastructure, engineering works and service contracts.

The court sided with Omniprime-Intrasoft. “Petitioner’s right to be awarded with the project is already clear and present.”

Lina’s setback with the judiciary comes along with the decision of Aquino to halt the BOC’s controversial manual inspection of balikbayan boxes ostensibly to curb smuggling.

In a statement, Aquino said that “there will be no random or arbitrary physical inspection of balikbayan boxes.”

“All containers of balikbayan boxes should undergo mandatory x-ray and K-9 examination — at no cost to the sender or the OFW,” the statement read.

In cases where there are derogatory findings, physical inspection has to be done with a representative from the Overseas Workers Welfare Administration (OWWA) or an OFW group, with provisions for CCTV monitoring.

“Employees who violate these protocols and engage in pilferage will be prosecuted and punished,” the statement read.

Overseas Filipino workers and their families raised a howl immediately after Lina announced that boxes sent from abroad would be opened as part of the agency’s fight against smuggling of drugs, weapons and taxable goods.

Lawmakers also expressed their objections to the move and urged the customs bureau to employ other means instead, like x-ray machines, to check contents of the boxes.