MANILA — After being dismissed as National Director of the Bureau of Fisheries and Aquatic Resources (BFAR), Demosthenes Escoto will face criminal charges, with the Office of the Ombudsman ordering the filing of cases against him at the Sandiganbayan.

In a 25-page resolution, the Ombudsman said that aside from Escoto, it also found cause to indict BFAR former National Director Eduardo Gongona and Simon Tucker of SRT Marine Systems Solutions, Ltd.

The case is in connection with the P2.1-billion contract the three entered into in 2018 to procure transmitters and transceivers for the Department of Agriculture-BFAR Integrated Marine Environment Monitoring System Project Phase II (PHILO Project).

The PHILO Project aimed to “institutionalize the Vessel Monitoring System (VMS) for commercial fishing vessels (catcher carrier and support vessels weighing above 30 gross ton) operating within and beyond the Philippine Exclusive Economic Zone.”

It was originally supposed to be financed by a loan from the government of France with a caveat.

“To qualify for the financial support and as bidder for the PHILO Project, sole proprietorships, partnerships, and corporations participating in the bid must be organized and registered under the laws of France. Also, companies with joint venture agreements (JVA) with these entities must register their JVAs under the laws of France prior to entering into contract for this project,” the Ombudsman said.

The contract was awarded to SRT-France, a subsidiary of SRT-United Kingdom (SRT-UK), which, according to the French embassy in the Philippines, did not follow the said condition.

The French loan was closed and local funding was sought. The project cost was also increased from P1.68 billion to P2.1 billion for the purchase of 5,000 units of VMS transceivers. It was later awarded to SRT-UK.

The Ombudsman said there is basis to charge the respondents with violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

“A newly incorporated company like SRT-France would have to rely on the support and supplies from SRT-UK to make good of its obligation in case the contract is awarded to it. In effect, the Philippines will be purchasing goods and services not from a French company but from a British company,” the Ombudsman explained.

It also argued that Escoto and Gongona, the chairman of the Bids and Awards Committee, and head of the Procuring Entity, respectively, favored SRT-France and SRT-UK.

“Escoto, Gongona and Tucker had apparently schemed to ultimately award a contract to SRT-UK that is disadvantageous to the government.”

The Ombudsman ruled, however, that there is no evidence to establish violation of Republic Act 9184 or the “Government Procurement Reform Act.”

Meanwhile, the complaint against former DA Assistant Secretary Hansel Didulo and SRT Marine Systems executive Richard Hurd was dismissed for lack of probable cause.