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Defense Secretary Delfin Lorenzana on Wednesday said Vice Admiral Ronald Joseph Mercado, Philippine Navy Flag Officer in Command, was relieved from his post after he tried to jeopardize the P15.5 billion frigate acquisition project.

"I have lost trust and confidence in his integrity and leadership," Lorenzana said in a press briefing.

"I questioned his intention behind his fixation with one specific company for the combat management system of the frigate acquisition project," Lorenzana revealed.

He said Mercado wants to bring in another company that is not included in the contract.

Lorenzana also accused Mercado of insubordination for disregarding and insisting on his system even after receiving two directives from the secretary.

"His constant call..., he goes around, forum shopping and he talks about rescinding the contract if the company he wants will not push through. So... I had to recommend his relief and it was approved by the President (Rodrigo Duterte)," he said.

Lorenzana added he gave Duterte the summary on what is happening with the project and on how it is being delayed for almost four months because of Mercado's interference.

"I didn't want to remove him but the team that is involved in the acquisition of the project frigate are being alarmed because of the project is being delayed," he said.

Lorenzana said he acted on the problem since the department is being put in a bad light because of the incident.

"I was waiting for him to explain to me, and I also told him, there are lots of social media ( posts) coming out painting the department as the one hindering the project and he is not saying anything to correct the misperception," he said.

"I told him, why are you not saying something as the FOIC (flag officer in command) so that this project will continue. It's already delayed, it's already four months delayed and what I'm hearing is you are going around saying that you want the project rescinded, the contract rescinded," Lorenzana added.

In October 2016, the Department of National Defense signed a P15.5-billion contract with Hyundai Heavy Industries for the construction and delivery of two frigates for the Philippines Navy. Ella Dionisio/DMS