Home » Senate panel concludes DepEd laptops overpriced by Php 979M

Senate panel concludes DepEd laptops overpriced by Php 979M

Written By JM Chavaria
Published • January 19th, 2023
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The Senate Blue Ribbon Committee has concluded that the Department of Education (DepEd) and PS-DBM laptop deal was overpriced by at least Php 979 million, leading them to recommend criminal and administrative charges against those involved.

The Senate panel report, released on Thursday, stated that based on evidence — including the findings and recommendations of the Commission on Audit (COA) — the overpricing had reached an amount of at least Php 979 million for the procurement of more than 39,000 laptops during the height of COVID-19 in 2021.

“The procurement process for the laptops, intended to support remote learning of students during the pandemic, was conducted by the PS-DBM supposedly upon the request and authority of the DepEd. The Committee, however, found that the Memorandum of Agreement (MOA) executed by the DepEd authorizing and delegating the procurement task to PS DBM was antedated which rendered the procurement process questionable and highly irregular,” the report explained.

Deped Laptop Celeron Fi

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Senate recommends administrative and criminal charges vs DepEd, PS-DBM execs

Senate Blue Ribbon Committee chairman Francis Tolentino said that the Sandiganbayan should advise how to recover the P979 million from DepEd and the Department of Budget and Management Procurement Service (PS-DBM), which acted as the procuring agent for the education department.

The Senate panel has recommended that administrative and criminal charges be brought against the following DepEd and PS-DBM top officials:

One count of violation of Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act against (causing undue injury to the government):

Former DepEd Undersecretary Alain Pascua;
Former DepEd Assistant Secretary Salvador Malana III;
DepEd Undersecretary Annalyn Sevilla;
DepEd Director for Information and Communications Technology Service Abram Abanil;
Former PS-DBM chief Lloyd Christopher Lao;
Former PS-DBM OIC Executive Director Jasonmer Uayan;
Bids and Awards Committee chair Ulysses Mora;
Engr. Marwan Amil;
Other members of the Special Bids and Awards Committee (SBAC) I and SBAC technical working group and Secretariat, whether from DepEd or PS-DBM.

One count of violation of Section 3(g) of RA 3019 against Pascua, Sevilla, Malana, Lao, Uayan, Mora, and other SBAC officers and secretariat.

Principals, representatives and/or agents of the Joint Venture consortium partners or other private parties, who may have colluded and/or conspired with aforementioned officials as supported by competent evidence, have also been charged:

One count of violation of Section 3(a) of RA 3019 against Sevilla and Ladanga. The section states that it is “unlawful for any person having family or close personal relation with any public official to capitalize or exploit or take advantage of such family or close personal relation by directly or indirectly requesting or receiving any present, gift or material or pecuniary advantage from any other person.

Multiple counts of perjury under Article 183 of the Revised Penal Code against Sevilla, Pascua, Malana, Lao, and Uayan.

In addition, the Senate panel recommended administrative and disciplinary investigations for Grave Misconduct, Serious Dishonesty, Gross Neglect of Duty, and Conduct Prejudicial to the Best Interest of the Service against DepEd and PS-DBM officials as identified in the report.

Senate panel absolves ex-DepEd secretary Leonor Briones

Despite the long list of criminal charges, the Senate panel cleared former Education Secretary Leonor Briones of any involvement in the laptop mess. Tolentino claimed that Briones may have only been “used.”

“In the mind of the Committee, this was clearly a ploy to downplay the adjustments which would have alerted Secretary Briones to direct a full review of the supporting documents, seek further advice, and/or withhold approval,” the report read. “With the adjustments– which were critical and important– albeit effectively disguised, Secretary Briones may have unwittingly approved the new parameters which increased the unit price and decreased the quantity of laptops to be purchased,”

Senate also recommends abolition of PS-DBM

The Senate blue ribbon panel’s report further included the following recommendations:

Abolition of PS-DBM
Require government departments, agencies, offices, including the government-owned and controlled corporations, state universities and colleges and local government units to conduct their own procurement as an exercise of fiduciary duty to be accountable for public funds appropriated for their respected offices
Amendments to the Government Procurement Reform Act to provide for transparency and accountability requirements for joint venture entities or arrangements participating in public biddings and to provide for transparency and accountability safeguards during the planning and pre-bidding stages of public procurement, including but not limited to the setting of the
Approved Budget for the Contract and technical specifications or goods, services or infrastructure to be procured
Immediate conduct of a Special Fraud Audit by the Commission on Audit
An investigation by the Anti-Money Laundering Council on the overpriced procurement, including an inquiry into bank deposits of the public officials identified in the investigation
Special Tax Compliance Audit or a tax fraud audit inquiry to determine whether the proper taxes were paid on the income of the Joint Venture consortium partners

Senate Blue Ribbon Committee Sept 8 2022 Hearing

Senate Blue Ribbon Committee hearing on DepEd, PS-DBM laptop mess (September 8, 2022)

Out of the 20 members of the committee, 12 senators have signed the report:

Senate Blue Ribbon Committee chairman Francis Tolentino
Ronald dela Rosa
Bong Go (with reservations)
Sherwin Gatchalian
Jinggoy Estrada (dissent)
Imee Marcos
Raffy Tulfo
JV Ejercito
Risa Hontiveros (to interpellate)
Grace Poe
Joel Villanueva
Senate Minority Leader Aquilino “Koko” Pimentel (to interpellate)

“We will definitely consider those recommendations” –DepEd spox Michael Poa

While they are yet to receive a full copy of the report, DepEd spokesperson Michael Poa affirmed their willingness to cooperate with any ensuing proceedings and supply necessary documentation.

“Kung meron mang proceedings that are going to take place in terms of if they need documentation on the side of DepEd, we will definitely cooperate with the process,” Poa said in a virtual presscon.

DepEd spox Michael Poa

Poa asserts that the recommendations will benefit the agency in improving its transparency. “The recommendations and the findings of the Blue Ribbon Committee will be definitely considered so that we could streamline and put in internal controls to ensure that our procurement process is efficient and of course, transparent,” he said.

CONTEXT: COA flagged DepEd’s purchase of ‘outdated and pricey’ laptops worth Php 2.4 billion

Last year in August, DepEd sparked controversy over its alleged laptop deal worth Php 2.4 billion, whereas the Commission on Audit (COA) in its 2021 Annual Audit Report (AAR) flagged the laptops as overpriced as well as being outdated.

The primary concern of the teachers who were supposedly the beneficiaries of the deal was that the laptops were slow, considering they only had an Intel Celeron chip inside.

Just a few days later, Senate initiated the probe on the memorandum of agreement used for procurement and bidding processes between PS-DBM and DepEd.

Furthermore, the AAR also noted that DepEd purchased costlier laptops rather than the ones initially indicated in their budget, resulting in a reduced number of units purchased and denying over 28,000 teachers of the intended benefit.

Shall the overpriced amount be retrieved as Senate advised, it will go to the Special National Teachers Trust Fund in support of the health and medical expenses of public school teachers and their children’s educational needs.

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JM Chavaria

JM's highest stat is probably his curious ardor to anything tech—electronics and gaming in particular. He certainly heeds utmost regard to specsheet, visuals, and rule of thirds. If creativity and wit sometimes leave JM's system, watching films, anime and a good stroll for memes are his approved therapeutic claims.