members clarified that they assumed that Mitsubishi and Ford have the capacity toprovide the good being bid out as two franchises of the manufacturers above-mentioned(Union Motor Mitsubishi Paco and Ford Edsa) bought bid documents. A BAC member also clarified that the technology required (LPG-powered) by DBP for the 8 vehicles isnot a Toyota technology and that the conversion to an LPG-powered vehicle isseparately done by another company.The BAC members also explained the rationale for procuring LPG-powered vehicles. Itwas mentioned that DBP has an Environmental Management System with certificationfrom ISO and through such program, it would require them to procure environment-friendly vehicles such as the LPG-powered. They also reiterated that they obtained theapproval of the President in procuring LPG-powered vehicles. A BAC member alsomentioned that the government has a policy of procuring LPG-powered vehicles. Thiswas later on corrected by the BAC Secretariat and said that there is no writtengovernment policy to that effect but that nonetheless DBP was allowed by thegovernment to procure the same goods by virtue of its EMS plan.TAN also noted that there was another Toyota franchise (Toyota Marikina) that boughtbid documents but failed to participate in the procurement of the goods in this subject.The proceedings were concluded with Toyota Pasong Tamo as the winner after proper review of eligibility, technical and financial documents. The TAN observers, in agreementto the regularity of the proceedings that ensued then, signed on the bid abstract alongwith the BAC members of DBP.
During the review of eligibility documents, TAN noted that one of the incorporators of Toyota Pasong Tamo (Mr. Arturo Macapagal) had the same surname as the BAC head(Mr. Vivencio Macapagal), which prompted the observers to research on their relationship with one another vis-à-vis the “conflict of interest” prohibition. TAN failed toestablish any relationship between the two but found that Mr. Arturo Macapagal, whohappens to be the Chief Executive Officer of Toyota Pasong Tamo, is a half-brother of the President and the President was the one who approved the request of the agency inits procurement of LPG-powered vehicles.TAN was furnished a copy of DBP’s letter to Department of Budget and Management(DBM) Secretary Emilia Boncodin dated August 21, 2003. The letter cited previouscommunications between the Office of the President and DBP regarding the purchase of LPG-powered vehicles. According to the letter, the President approved DBP’s requeston November 2, 2002. Another letter, dated March 1, 2004 and signed by ExecutiveSecretary Alberto Romulo, authorized DBP to purchase 8 LPG-powered vehicles.When asked of the Annual Procurement Plan, a DBP representative said that their planis yet to be approved by the agency head. According to the representative, DBP has hadno procurement plan and that this is their first time to have one as per requirement bythe GPRA. TAN notes, however, that DBP has been inviting them to procurementactivities related to 9 goods without the necessary “guidance” of an APP.Because of the fact that there was only one participant-bidder (Toyota Pasong Tamo),TAN felt the need to validate whether the other supposed participants (Union Motor and