MANILA – The Court of Appeals (CA) has affirmed the decision of a lower court dismissing the petition of a local car dealership questioning the Department of Health's decision to temporarily blacklist the company in government contract biddings until last May.
The appellate court’s Special Second Division affirmed the Nov. 25, 2022 ruling of the Caloocan City Regional Trial Court Branch 128 dismissing the suit initiated by Toyota Balintawak Inc. against former DOH secretary Francisco Duque III.
Duque ordered in December 2021 the blacklisting of the firm from participating in any competitive bidding with the government from May 30, 2022 until May 29, 2023.
"(I)t is a hornbook doctrine that findings of facts of the trial court are entitled to great weight on appeal and should not be disturbed except for strong and valid reasons,” the CA said in a decision promulgated Aug. 16 and shared online over the weekend.
The court added that there was no reason to deviate from the findings of the trial court in the case "as the same are supported by the evidence and in accordance with law and prevailing jurisprudence."
The case involves the 2019 procurement of 23 ambulance units, pursuant to the World Bank-financed Philippine Covid-19 Emergency Response Project of the DOH, where the initial specifics provided by the firm for its commuter deluxe van complied with the technical requirements.
On June 28, 2021, the DOH Technical Working Group inspected the prototype unit presented by the dealer and informed that the patient compartment height of the unit was limited to 1,300 mm, which failed to meet the 1,600 mm standard height requirement.
The firm failed to present an acceptable modified prototype notice within the date set by the contract of agreement and on Oct. 14, 2021, the DOH issued a notice of termination.
The firm claimed it was ready to present the modified unit but the DOH rendered a decision on Nov. 11, 2021 denying its request for the presentation of the new prototype unit, declaring the agreement terminated and ordering that the firm be blacklisted from participating in any competitive bidding with the government pursuant to the Government Procurement Policy Board Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants.
The lower court ruled that the blacklisting follows as a matter of course after contract termination. (PNA)
