Eleven of 15 government contracts awarded by the Davao City local government to a firm linked to Vice President Sara Duterte did not undergo competitive public bidding but were processed through negotiated small-value procurement, a witness told the Senate impeachment court Monday.

The 11 contracts were worth roughly P7 million to P8 million combined and formed part of the P34.2 million in contracts awarded by the LGU to Gencorp Industries Inc. from 21 July 2022, to 23 June this year, overlapping with Duterte’s tenure as Vice President.

Duterte identified herself as an incorporator and stockholder of Gencorp in her previous Statements of Assets, Liabilities and Net Worth.

However, Securities and Exchange Commission records do not list her as an incorporator or stockholder.

According to Philippine Government Electronic Procurement System (PhilGEPS) division chief Rendell Sopeña, the P34.2 million represents the 15 contracts. Of the total, only four underwent competitive bidding. 

“I remember correctly, 11 did not undergo public bidding...[but] through negotiated small value procurement,” he said in response to a question posed by Senator-judge Risa Hontiveros.

Negotiated small-value procurement is one of the alternative modes under the procurement law, although competitive bidding is the default mode for government transactions.

Sopeña said the costs of the 11 contracts are as follows: P501,600, P414,000, P249,000, P49,800, P498,000, P805,500, P381,000, P508,000, P381,000, P254,000, P554,000.

The P34.2 million represents the largest share of the about P36 million in contracts awarded to Gencorp by several government offices in Davao, Duterte’s political bailiwick. 

PhilHealth-Davao accounted for most contracts, with 33 contracts totaling P1.33 million. OWWA-Davao awarded P330,000 worth of contracts to Gencorp, while the Davao LGU awarded the largest share at P34.2 million.

Several senator-judges questioned the lack of PhilGEPS safeguards to prevent public officials from bypassing procurement rules.

Sopeña, however, said PhilGEPS is merely a repository of procurement data and has no authority to conduct independent verification.

PhilGEPS relies solely on bidders’ declarations, though upgraded digital platforms will soon feature automated red-flagging and owner-tracing tools.

Senator-judge Raffy Tulfo pressed Sopeña on why Gencorp was not flagged for conflict of interest.