Budget issues aside, Lorenzana approves purchase of Tacticos Thales

FILE: Defense Secretary Delfin Lorenzana (PNA Photo)

If budget is not an issue, Defense Secretary Delfin Lorenzana would approve the purchase of Tacticos Thales for the combat management system (CMS) for the two frigates that the Philippine government had purchased.

“Maganda ang sinabi ni Senator Ralph Recto. ‘Bakit hindi na lang natin bilhin ‘yan kung ‘yan ang gusto ‘nyo (What Senator Ralph Recto said was good. Why don’t we purchase it if that’s what you want)?” Lorenzana told reporters after the Senate committee hearing on the frigate project on Monday.

“Ako, I don’t have an objection kung bibilhin. Yun ang gusto nila eh. Kung hindi kayo magdadagdag, hindi ikakabit ng Hyundai yun. May kaakibat na gastos (I don’t have an objection if they will buy it. That’s what they want. If they won’t pay extra, Hyundai will not install it. So there is a spending involved),” he added.

During the hearing, Senator Ralph Recto suggested that the Philippines should also use Thales since many countries around the globe use the same kind.

“I agree with that. But magbabayad ba tayo ng malaki (But are we willing to pay more)?” Lorenzana replied.

If the government would buy the Thales for the CMS, it would cost the country an additional amount of at least P350-million or $7-million for each warship.

Meanwhile, ousted Philippine Navy (PN) chief Vice Admiral Ronald Mercado expressed his support for the proposal to have an extra payment to obtain the best CMS for the country’s warships.

“It’s something that can be pursued. He (Recto) was thinking of a win-win solution for everybody. That’s the beauty of what’s happening now,” Mercado said.

Mercado said he hopes that both chambers would consider the bigger budget. The former PN chief Vice Admiral was relieved from his post last December 20 due to insubordination.

The original preference of the Philippine Navy for the CMS of the frigate project was the Tacticos Thales. The former Navy chief was sacked from his position for supposedly insisting on this brand.

Lorenzana said he lost his trust and confidence in Mercado’s integrity and leadership, questioning his intention behind fixation with one specific company.

The chosen supplier of Hyundai Heavy Industries—Hanwha Systems—supposedly did not pass the Navy’s specification in the contract and it was also not a “proven” technology compared to Tacticos.

As the Navy prefers Tacticos Thales, the contract stated that the supplier will be the one deciding on what system should be used for the frigate.

“Siguro mas maganda. But sa procurement law ang pipiliin ang compliant. Kung tumatama sa specification mo ang produkto yun ang kunin mo (I think it is better. But under the procurement law, the one that will be chosen is the compliant. If that product meets your specification, that is what you get),” the Defense Secretary said.

“Nasa Technical Working Group sila mismo nung ginagawa yung kasunduan na yan eh. Pumayag sila na Hyundai ang pipili ng CMS. Tapos ngayon mag implement, sasabihin nila na hindi na pwede ang Hyundai. Eh yun ang nasa kontrata (They are with Technical Working Group when they made the contract. They approved that Hyundai will choose the CMS. Now that it will be implemented, they say Hyundai cannot do that even though that is in the contract),” he added.

Lorenzana further stressed that if the Navy prefers Tacticos since most navies use the same brand, they should not pre-qualify the Hanwha so Tacticos would remain.