Filtered By: Topstories
News

DepEd suspends contract of supplier of 'overpriced' noodles


MANILA, Philippines - The Department of Education has suspended the contract of its supplier of noodles for the Food-For-School program over allegations of overpricing and false nutritional claims. In a letter to Senator Manuel Roxas II, chairman of the committee on trade and commerce, Department of Education (DepEd) Secretary Jesli Lapus said the contract of Jeverps Manufacturing Corporation (JMC) would stay suspended pending review and investigation. Education undersecretary Vilma Labrador read Lapus’ letter at the resumption of the Senate probe on alleged overpriced noodles. DepEd undersecretary for legal Frankin Sunga told the committee that in their initial assessment of the contract, they believe the price of Jeverps noodles is comparative but Lapus still ordered the review of the contract and asked experts to check on the noodles. Labrador and Sunga assured Roxas that they would inform the committee of the result of their study. “We received official communication from DepEd that in view of the concerns and questions relative to the noodles, they will defer the signing of the contract and will undertake the review of the same," Roxas later informed Senate President Juan Ponce Enrile who was at the hearing. DepEd awarded to JMC a P284.13-million contract for “fortified noodles with fresh eggs" in 2007 and P427.21 million for “fortified noodles with fresh eggs and malunggay" in 2009. Last month, businessman Prudencio Quido Jr. told the committee that the contracts the DepEd awarded to JMC since 2007 were “highly anomalous, fraudulent and worse, most disadvantageous to the interest of the government and supposed beneficiaries — the public school elementary children." Quido accused the DepEd of circumventing rules to favor JMC as no local manufacturer could comply with the requirements set by DepEd, which said each pack of noodles should contain 100 grams. But, he said, regular supplies in the market has 55 grams per pack. “Hence, necessarily, the noodles to be supplied were imported thereby circumventing the law on the matter," Quido said. He added that the cost per noodle pack for the first project held in 2007 was highly unconscionable at P18, when the price in the market was only P4.50. “Hence, the government had lost the amount of P170 million, more or less," Quido said. Moreover, he said the labeling of the noodle packs “Fortified Instant Noodles with Fresh Eggs" was deceitful because there was no fresh egg in the packs. He cited the result of a study on the noodles by a testing agency in Vietnam showing that “the DepEd’s fortified instant noodle with fresh egg is made of flour and does not contain any fresh egg but mere egg powder." Quido added that the costing per pack of the 2009 contract was equally unconscionable at P22. “The government stands to lose the amount of P251 million, more or less," he said. A check with the Bureau of Food and Drugs (BFAD) on February 19, 2009 showed the JMC has no record of license to operate, he added. He said the Food and Nutrition Research Institute (FNRI) also said that instant noodles with fresh eggs and malunggay is still under study. On the other hand, Quido said, Science and Technology Secretary Estrella Alabastro said that there is not enough source of malunggay for bulk production of fortified noodles. - Amita O. Legaspi, GMANews.TV
LOADING CONTENT