PCA to probe ‘overpriced’ fertilizer contract

MANILA, Philippines – The Philippine Coconut Authority (PCA) Board is set to investigate a supposedly overpriced contract for coconut tree fertilizer.

In a statement issued on Thursday, December 18, PCA Board officials said they have ordered the board audit committee to conduct an administrative investigation on the PCA Bids and Awards Committee (BAC).

This was after the BAC submitted for approval a contract that pegged the price of a bag of Ammonium Sulfate fertilizer at P751.85 (US$16.08), around P300 ($6.7) above the usual market price, according to Food Security and Agricultural Modernization Secretary Francis Pangilinan.

The PCA had intended to purchase 39,000 bags of 21-0-0 Ammonium Sulfate to fertilize coconut trees recovering from the coconut scale insect outbreak that had ravaged Luzon plantations.

If the contract had been awarded to the winning bidder, it would have led to a total overpricing of around P10 million ($223,500). The total value of the contract is P29,250,000 ($653,700).

“With that amount, an additional 20,000 bags of fertilizer would have been purchased and thousands more of farmers would have benefited. This is totally unacceptable,” said Pangilinan.

Compared to the BAC-approved price, the retail price per bag is less than P500 ($11.2), according to industry players Pangilinan spoke with.

PCA Director Oscar Garin also noted that the price for the product in Iloilo is less than P600 ($13.4).

The BAC, headed by its chairman Carlos Galicia, defended themselves in a December 3 memo.

They explained that the comparatively higher BAC-approved price is due to the change in market prices. They recommended that the contract be rebidded. – with reports from Pia Ranada/Rappler.com

US$1 = Php 44.74