Two former high-ranking officials of the Bureau of Fisheries and Aquatic Resources (BFAR) have been arraigned and are now on trial for graft in connection with a controversial 2018 vessel monitoring system (VMS) project valued at P2 billion.

Former DA Undersecretary for Fisheries and BFAR national director Eduardo B. Gongona and former BFAR national director Demosthenes R. Escoto appeared before Judge Don Ace Mariano V. Alagar of the Regional Trial Court (RTC) Branch 141 in Cainta, Rizal, on 26 February.

Both entered not guilty pleas to the four counts of graft filed against them. Following their arraignment, they submitted pre-trial briefs, and the case proceeded to trial.

Earlier, Gongona and Escoto each posted bail of P360,000 with the RTC, securing their temporary release.

The charges include two counts of violating Section 3(e) of Republic Act (RA) 3019, the Anti-Graft and Corrupt Practices Act, as well as one count each under Sections 3(g) and 3(j) of the same law. These charges stem from their alleged involvement in the irregular awarding of the VMS contract to SRT Marine Systems Solutions Ltd., a British firm.

Also charged in the case is Simon Tucker, the CEO of SRT Marine Systems Solutions Ltd., who has yet to be brought under the court's jurisdiction. The court has denied motions to dismiss filed by the three accused and has directed Tucker to surrender and post bail.

Gongona and Escoto posted bail on 6 January, a day after the RTC issued warrants for their arrest.

The graft allegations originated from a complaint filed by lawyer James Mier Victoriano against Gongona, Escoto, Tucker, former DA Assistant Secretary Hansel Didulo, and SRT-UK’s Chief Financial Officer Richard Hurd. However, the Ombudsman previously dismissed the charges against Didulo and Hurd due to insufficient evidence and found no violations of RA 9184, the Government Procurement Reform Act.

Court records indicate that the VMS project was initially budgeted at P1.6 billion under a loan agreement with the French government. The terms of the loan required bidders to be either French entities or in a joint venture with a French company.

SRT-France, a subsidiary of SRT-UK, initially won the bid in 2017. However, the French government disqualified SRT-France due to its British ownership and lack of operational facilities in France, leading to the cancellation of the loan agreement.

In 2018, the project's funding was sourced locally, increasing the budget to P2.09 billion. Subsequently, the contract was awarded to SRT-UK. The project's scope was also expanded to include 5,000 VMS transceivers for commercial fishing vessels and satellite service subscriptions, significantly increasing the government's financial obligations.

In a resolution dated 5 February 2024, the Ombudsman concluded that Gongona, Escoto, and Tucker conspired to award the contract to SRT-UK in a manner that was grossly disadvantageous to the government. The Ombudsman found that they extended unwarranted benefits to SRT-UK, violating Sections 3(e) and 3(j) of RA 3019.

“They orchestrated a series of questionable events which culminated in the award of a very favorable contract to SRT-UK,” the Ombudsman stated.

The Ombudsman noted that the government was compelled to procure 5,000 VMS transceivers, a significant increase from the originally planned 3,736, resulting in an inflated and unfavorable contract.

The project, which commenced on 4 December 2018, was initially scheduled to conclude by 4 December 2021, but is now considered expired.

The Ombudsman reaffirmed its findings in October 2024, rejecting the motions for reconsideration filed by the accused in an order signed by Ombudsman Samuel Martires.

Separately, Escoto has been dismissed from government service after the Ombudsman found him guilty of grave misconduct related to the same transaction.

He also faced contempt of court charges for implementing Fisheries Administrative Order (FAO) No. 266, despite a permanent injunction from the Malabon RTC. FAO 266, which mandated a tracking system for commercial fishing vessels, was declared unconstitutional by the Malabon court.