BOC ‘defying’ court order on automation?

THE winning bidder for the replacement of the Bureau of Customs’ (BOC) ‘electronic-to-mobile’ (E2M) system is questioning the bureau’s decision to request P96 million for its maintenance next year, instead of funding the project it won 2015 and whose implementation has been affirmed by the Supreme Court.

Atty. Israelito Torreon, counsel for the joint venture of Omniprime Marketing and Intrasoft International, in a statement to Pinoy Exposé, said the bureau’s decision left them with no choice but to petition Branch 47 of the Manila Regional Trial Court (RTC) for the issuance of a show cause order and cite customs officials, headed by Comm. Rey Leonardo Guerrero, for contempt, for “defying” the writ of execution of the much-delayed project issued by the court only last January 6, 2021.

In an effort to further hasten the modernization of the BOC’s systems and processes, the government, during the term of Pres. Benigno ‘Noynoy’ Aquino, decided to launch the ‘Integrated Enhanced Customs Processing System’ (IECPS), aimed at overhauling the E2M, an ‘intermediate’ computing system that replaced the original ‘AsycudaWorld System’ the BOC first used during the Ramos administration (1992-1998) with the help of the World Bank.

The IECPS also aims to assist the Philippines with its ‘National Single Window’ (NSW) project in order to comply with the ‘ASEAN Single Window’ (ASW) project to further hasten trade within the region.

Between 2010 and 2012, Congress appropriated a total of P650 million for the IECPS with the project being won in 2015 by Omniprime/Intrasoft against the joint venture of E-Konek Philippines and Webb Fontaine, which is behind E2M.

However, when Alberto ‘Bert’ Lina became customs commissioner in April 2015, he requested the Procurement Service of the Department of Budget and Management (PS-DBM) headed by Atty. Jose Tomas Syquia, to cancel the IECPS and also scrap the NSW program.

Lina and former customs commissioner, Guillermo Parayno are both connected with E-Konek and were subsequently sued by Omniprime before the Ombudsman for “manifest partiality,” “conflict of interest and bad faith” for favoring the continuance of the E2M despite the result of the bidding.

Aside from this, Omniprime/Intrasoft was also compelled to file a civil case against the BOC under Lina before the Manila RTC for the execution of the IECPS they won.

Although the BOC and the Office of the Solicitor General (OSG) dragged the case up the Supreme Court, the latter, in a final ruling in June 2018, upheld the RTC’s decision wherein the court enjoined “all the respondents from initiating any other procurement, sourcing of funds and conducting any other procurement whether thru public bidding or negotiation to replace or upgrade the present customs systems subject matter of this bid.”

The court made a ‘final entry of judgement,’ meaning, the ruling can no longer be appealed by any party, last January 29, 2021.

Despite the clear order of the court, Torreon said they were “surprised” to learn that Guerrero still agreed to request Congress for P96 million for the maintenance and “stabilization” of the E2M and that up to the month of October 2021, both the OSG and the BOC continue to file court petitions “clearly intended to delay the project’s implementation and subvert the ruling of the court.”

‘No fund available’

Atty. Vincent Maronilla, BOC spokesperson, said that while they take cognizance of the court ruling, implementing the same may not be possible at this time since there was “no budget available” for the IECPS.

He averred they only formally received the Manila RTC’s writ of execution “quite late” when they have already completed their budget request to Congress.

“Nasa Senado na ang budget request the BOC and we cannot go back to Congress at this point.” Siguro for next year, we can attend to this,” he told Pinoy Exposé.

The non-availability of fund for the IECPS was confirmed in a “partial report” to the court by Sheriff Gilbert M. Dela Cruz last February 4, 2021, several days after his visit to the BOC and the DBM to implement the writ of execution.

Together with Omniprime/Intersoft representatives, Cruz reported that they met last January 20, 2021, with BOC Financial Management Service director, Marilou Cabigon, where they were informed that the entire budget for the IECPS had been remitted back to the national treasury in two tranches—P350 million during the term of Lina and P460 million to the PS-DBM.