Defense contract with UK firm gets DOJ approval

The Department of Justice has reversed an earlier ruling to allow the Armed Forces to go ahead with a contract with a British defense firm to upgrade three Navy vessels, officials said yesterday.

Justice Secretary Simeon Datumanong reversed an earlier ruling that required public bidding for the 10.43 million pound ($16.3 million) project.

In a legal opinion obtained by reporters, Datumanong said a new law on government procurement passed in January effectively allowed for negotiated contracts on a government-to-government basis.

The Department of National Defense signed a memorandum of understanding (MOU) with its British counterpart for British firm QinetiQ Ltd. to upgrade three Navy patrol vessels.

In Opinion No. 23 dated April 4, Datumanong informed Defense Secretary Angelo Reyes that the deal is covered by the new Government Procurement Reform Act or Republic Act 9184.

Datumanong said the 1996 MOA on defense cooperation and the 1997 sales agreement between the Philippines and the United Kingdom are international agreements.

Thus, under Section 4 of RA 9184, he said the contract is legal and no longer subject to public bidding.

The Philippines bought the three Jacinto Class patrol vessels from the UK on Jan. 31, 1997. The MOA covering the purchase was signed on Jan. 3, 1996. — With AFP