Rappler exposes illegal sale of DepEd laptops

CHEERS TO Rappler for following up on the pattern of corruption in the Department of Education’s (DepEd) procurement system. Ryan Macasero and Bonz Magsambol co-wrote the two-part series. The first was posted on May 1 and the second on May 2.

The report started with the discovery of illegal sale of laptops which DepEd had purchased for schools. The case is entirely separate from DepEd’s controversial purchase of overpriced and outdated Dell laptops that was flagged by the Commission on Audit (COA) in 2021. The current case also involves bad judgment and possible corruption in the awarding of a contract worth PHP 667 million to a small company with limited experience and insufficient capital.

The two cases paint a picture of a department riddled with inefficiency, displaying negligence and corruption in their systems and processes. 

DCP delivery issues, gov’t laptops sold

The first part focused on the selling of government-owned Coby NBPC 1958 laptops in surplus stores in Cebu and on Facebook Marketplace. Laptops showed marks that the stickers identifying these as DepEd property had been removed.

Rappler confirmed DepEd ownership of the property after cross-referencing serial numbers of some laptops found in stores and those recorded in lists of DepEd supplies inventory. 

The laptops in question were procured under the “DepEd Computerization Program (DCP)” and intended for distribution to public schools. The DCP program originally had laptop suppliers deliver their products directly to schools. But this system was plagued by inconsistencies in quality of supplies and delays in delivery. 

Rappler conducted an “informal survey” to check with about six hundred beneficiary schools. Of the 139 schools that responded, 30 schools or 22 percent told Rappler they did not receive the DCP laptops. 

The article also cited COA’s 2020 report which found that from 2018 to 2020, only eight thousand out of almost 39 thousand (or 16 percent) DCP packages were delivered to target schools. 

To address the problem, DepEd in 2021 decided to use a third-party logistics provider to handle warehousing and deliveries. 

Questionable contract, slow action

The second part detailed the awarding of the contract to Transpac Cargo Logistics Inc. (Transpac), a small service company. A source in the business community confirmed to Rappler that “not much is known” about Transpac. 

Rappler said that compared to the other companies who entered their bids, Transpac was the least prepared to carry out the massive contract. Financial records showed that Transpac’s bank assets as of 2021 amounted to only PHP 7.1 million. As of 2020, it had only one Pasay City warehouse under lease. The other firms had more financial capacity and held staffed warehouses in different parts of the country. 

By November 2022, a year into the contract with DepEd, the mounting operational costs proved too heavy a burden on Transpac. With DepEd’s payments delayed, its limited working capital forced the company to halt operations and unpaid subcontractors to sell laptops in their inventory. 

Rappler said representatives from Transpac refused to elaborate, only saying in its demand letter that DepEd’s unpaid liabilities were to blame for the interruption in contract fulfillment. DepEd Spokesperson Michael Poa refuted the allegations, insisting that there was no unpaid liability to Transpac. The report, however, did not get DepEd to admit that there were undue delays in payments. According to the report, DepEd was not aware when the laptops were placed in the market for sale to the public. 

A February 20, 2023 DepEd statement said they were making efforts to “apprehend the perpetrators.” Rappler noted that almost three months since, there have been no reported arrests. 

A pattern of mismanagement and corruption

Rappler incorporated its August 2022 account about the earlier scandal of overpriced computers revealed in a COA audit report. The Senate Blue Ribbon committee in January recommended the filing of charges against several former DepEd officials. 

A follow-up report on May 4 said that DepEd officials implicated in the Transpac deal had resigned, namely Undersecretary for Administration Kris Ablan and Assistant Secretary Christopher Lawrence Arnuco. Both officials held positions in DepEd that directly involved procurement. Ablan was even the addressee of Transpac’s demand letter. 

Citing Rappler’s exposé, the Makabayan bloc in the House of Representatives filed a resolution seeking to investigate the matter on May 9.  

More media should look at the case as part of the larger picture of corrupt practices involved in DepEd’s procurement process. Clearly, the system has been open to abuse. Media should sustain consolidated coverage across news organizations until appropriate action is taken, including the filing of charges. 

Without media solidarity, corruption in government will find cover in the culture of impunity.