Bitte lies dieses! (PMMA; RDE)

E·N·Q·U·I·R·Y
DEMAREE J.B. RAVAL

Bitte lies dieses!
Sunday, 03 26, 2006

Allowing for the peculiar manner that some Germans translate their language into English, the phrase above would probably turn out as: “Please, for you to read this.” But what the heck! — the meaning is clear enough, and I might have gotten my German all screwed up. But by all means read on — so you may know that there is another scam involving a German company, coming at the heels of that convoluted controversy at the Ninoy Aquino International Airport involving a German firm. First, die Germans botched up our airline industry. Now, sie are muddying the waters of our maritime industry.

Rep. Rolex Suplico stumbled upon this scam while on a trip to idyllic San Narciso, Zambales, and he has had nightmares ever since. The Germans could be an unforgiving lot if you mess with them, and this is what strikes holy fear in the heart of many from the time Suplico exposed in a privilege speech some things that are verboten — and rotten — in San Narciso.

Two years ago, the Philippine Merchant Marine Academy (PMMA), located in San Narciso, became the recipient of a loan from the Federal Republic of Germany. The loan, amounting to nearly P800,000,000, was intended to upgrade the PMMA’s training facilities so that the skills of our already famous merchant mariners could be honed into razor-edge sharpness when they compete in the world market. The project called for the construction of a dome replete with state-of-the-art, full-mission ship bridge and engine-room simulators within a computer infrastructure; the acquisition of a complete training ship outfitted with a patrol boat, lifeboats and davits; the construction of a quay and port facilities, a firehouse, an upgraded emergency-power housing; expensive 3-D drawings of virtually all categories of ships, among others.

The funds for the project were channeled through a German government-owned bank, Kreditanstalt fuer Wiederaufbau (KfW). The contractor was also a German firm, the Rheinmetall Defence Electronics (RDE). The project was due for completion and turnover last December 2005. But, Gott im Himmel! to the country’s extreme prejudice, the project remains undelivered as of this date. Worse, it is beset with anomalies.

The training ship "Juan Luna" cannot be berthed because the port facilities, aside from being far away from completion, are constructed not in accordance with acceptable professional standards. The ship, virtually of scrap vintage, came with an exorbitant price tag. RDE got away with P29,000,000 in profits, while our country got a floating junkyard for a training ship and poorly constructed, unfinished port facilities.

Despite its rusty, moribund condition, the "Juan Luna" was conveniently renovated. In the past, so many of our best pilots and their passengers died in crashes involving our ancient fleet of flying coffins. Now we are endangering the lives of young cadets at our premier maritime school with the use of a training ship that is no better than a floating coffin.

RDE was required to secure an insurance coverage for the project. In order to raise the amount for the insurance, and without dipping into its profit margin, it now appears that RDE resorted to ghost deliveries of several major items for which Provisional Acceptance Certificates were issued, with the connivance of the usual greedy sharks in San Narciso. And, surprise! — the total amount of these ghost deliveries amounted to 522,862.54 euros, the same amount needed to pay for the insurance coverage. Helige Kuh!

A report submitted by an auditor from the KfW indicated anomalies which even a landlubber could not fail to see: The davits are clearly ancient and worn-out, and were merely repainted to give the semblance of being new; the lifeboats are also old and were made to appear as new. An additional insult to these dressed-up injuries were the lifeboats that were certified by a local classification firm from Cebu as spanking new, despite the obvious fact that these were clearly pre-used.

RDE’s warranty and performance bonds have expired, but the PMMA turned a blind eye and did not require RDE to renew the bonds. The non-renewal of these bonds allowed RDE to pocket what otherwise would have been fixed premium cost. As to why the implementors of the project allowed this to happen is the $60.3 million question. Because of RDE’s contract violations — non-deliveries, ghost deliveries and failure to deliver the project on time — the PMMA could have proceeded against the warranty and performance bonds. Now, the government has been rendered without any security.

The foregoing items alone amount to approximately P315,000,000, and this does not yet include monies which RDE funneled through its German sub-contractor for purposes which only an appropriate congressional investigation may possibly uncover.

There was even an alleged bribery attempt on the RDE local agent who knew too much about the anomalies, to silence him and to ensure an unruffled “implementation” of the project. The agent refused to cooperate, and he was stripped of his agency and his entire commissions, and is now being threatened with assassination “Zambales style,” whatever that means.

Suplico is pressing for an investigation in aid of legislation. By all means, let us get on with it. RDE is reported to be very close to sealing a multi-billion peso deal with the Department of National Defense in behalf of the Philippine Navy. This German contractor should be banned from doing business in the Philippines. Ihr Deutsche, seid besser vorsichtig!

It is bad enough that we get screwed by fellow Filipinos who enjoy the blessings of you-know-who. Getting buggered by foreign carpetbaggers, Germans at that, really leaves a very sore gash in our national you-know-what.

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