‘Ilocos Norte vehicles overpriced by P21 M’

MANILA, Philippines - Congressmen found out yesterday that the 110 multicabs and mini-trucks procured by the Ilocos Norte provincial government in 2011 and 2012 were overpriced by P21.450 million.

Fabian Go, president and owner of Granstar Motors, the company that supplied the vehicles, told the House committee on good government that his price quotation for the vehicles was P270,000 per unit.

Go said he dealt with Mark Chua, the longtime Singaporean partner of Gov. Imee Marcos, and his secretary, Irene Mendoza.

Go said he got the impression that the purchase of the vehicles was a “private sale.”

“I came to know that this was a government transaction when this investigation started,” he said.

Ilocos Norte Rep. Rodolfo Fariñas, who initiated the inquiry, said based on the purchase orders and two cash advances, Marcos authorized the procurement price at P465,000 per unit.

“This means that there was an overprice of P195,000 per unit,” Fariñas said.

Go revealed the details of the transactions  with his company after the House granted him immunity from prosecution for his testimony.

He also asked the House panel to give immunity to his underlings who were involved in the deals.

The committee voted to subpoena Chua and Mendoza to compel them to attend the next hearing.

Fariñas said Marcos authorized two cash advances for the payment of the vehicles. Provincial treasurer’s office disbursing officers Encarnacion Gaor and Genedine Jambaro received  P18.6 million on Dec. 1, 2011 for 40 multicabs and P32.6 million on Sept. 12, 2012 for 70 mini-trucks, respectively.