ILIASCO questions 'eligible' rating given to two port services bidders
The Ilonggo arrastre services company that is bidding to reclaim the contract to provide cargo handling services at the Iloilo River Wharf here in Iloilo City is asking the chairman of the Philippine Ports Authority's (PPA) Bids and Awards Committee to mark as "ineligible" two participating bidders earlier rated by the members of the BAC as "eligible."
In a letter dated October 1, 2007 and sent to Port District Office Manager Raul Santos, who also chairs the BAC, Atty. Gerson P. Espinosa, Sr., president and chief executive officer of the Iloilo Integrated Arrastre Services Corporation (ILIASCO), questioned the BAC's decision to give an "eligible" rating to both the Prudential Customs Brokerage and Services, Inc. (PCBSI) and Filipinas Port Services, Inc. (FILPORTS) despite the two firms' non-submission of a valid and current mayor's permit/municipal license as required in the PPA's Checklist for Eligibility Requirements and Section 23.6, paragraph 1 (b) of the Implementing Rules and Regulations of Republic Act No. 9184.
"During the opening of bids (conducted on September 17, 2007 in Cebu City), we have learned that you have rated as 'Eligible' the eligibility requirements as contained in the Eligibility Envelopes of the two (2) participating bidders (PCBSI and FILPORTS)… We have also found out that the afore-named bidders have not submitted a valid and current Mayor's Permit duly approved and issued by the City Government of Iloilo. It is our strong contention that the participating bidders must submit and possess a valid and current Mayor's Permit where the Cargo Handling Services is to be provided, basically because of the fact that a business entity cannot operate in Iloilo City without the required Mayor's and/or Business Permit," part of the letter stated.
The letter went on to say that since the operation for the privatized cargo handling services would immediately commence upon the award of the contract and execution thereof, "it is therefore necessary that all the participating bidders must, at the time of the public bidding, already possess a valid and current Mayor's Permit."
"Hence, the requirement as regards the Mayor's Permit as therein contained in the Checklist and as stated in the IRR of R.A. 9184 should be strictly construed to be a Mayor's Permit where the cargo handling services is to be provided, in this case a Mayor's Permit issued by the City of Iloilo," the letter added.
Espinosa said ILIASCO's representatives during the said bidding in Cebu were unable to express their objections to the "Eligible" rating given to both PCBSI and FILPORTS in compliance to one of the rules conveyed at the start of the Opening of Bids that "no questions will be entertained."
"In view of the foregoing, it is herein interposed that the eligibility requirements submitted by PCBSI and FILPORTS should be rated as "Ineligible" for their failure to submit a valid and current Mayor's Permit in the City of Iloilo, pursuant to Section 23.2 of the IRR of R.A. 9184, which states that: '23.2. X x x. In this regard, failure to submit a requirement, or an incomplete or patently insufficient submission, shall be considered 'failed' for the particular eligibility requirement concerned. X x x. If a prospective bidder is rated as 'failed' in any of the eligibility requirements, it shall be considered ineligible to participate in the bidding, and the BAC shall mark the set of eligibility documents of the prospective bidder concerned as 'ineligible.'"
"Wherefore, we are hereby interposing our strong objection to the initial finding of the herein members of the BAC in rating the eligibility requirements (Eligibility Envelopes) submitted by PCBSI and FILPORTS as 'Eligible,'" the letter stated in conclusion.
Aside from ILIASCO, the Makati-based PCBSI and the Davao-based FILPORTS, the other company that submitted a bid for the 10-year cargo handling services contract at the Iloilo River Wharf is the Consolidated Port Management Services, Inc. (CPMSI) of Iloilo.
ILIASCO's major shareholders include Fast Cargo Corp. of the Chongbian family; Feliciano Casing of Cebu; company president Atty. Gerson Espinosa, Sr.; and Helen Jimenea Divinagracia, who sits in the board after the death of original director Antonio Jimenea; among others.
ILIASCO, which had previously operated cargo handling services in the Iloilo River Wharf, has maintained a clean and solid reputation as a foremost arrastre services company in the Visayas since its inception way back in 1975, mostly because of its president Atty. Gerson Espinosa, Sr., a well-respected businessman here in the city. It presently operates cargo handling services at the Fort San Pedro area.
To note, there were reports PCBSI is being favored to win the contract due to the alleged support and influence of Negros Occidental fifth district Rep. Ignacio Arroyo, who is rumored to be the "special friend" of a certain Grace Ibuna, whose family owns the said corporation.