Town told to prepare procurement plan

CEBU, Philippines - The Commission on Audit 7 is reminding the northern town of Daanbantayan to prepare an Annual Procurement Plan to guide the town in procuring supplies and materials within an approved budget.

In its 2008 post audit report on the municipality, COA said the town has no annual procurement plan in the acquisition of supplies and materials, as required in Section 7 of the Government Procurement Reform Act 9184.

Under Section 7 of RA 9184, “All procurement should be within the approved budget of the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity concerned.”

It also says that “no government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head of the Procuring Entity and must be consistent with its duly approved yearly budget.”

COA said requisition can be controlled by the town’s General Services Office.

Records of the town showed that within a nine-month period, different offices of the municipal government have purchased various office and computer supplies totalling P376,928.35, but the procurement was reportedly made through personal canvass or as need arose instead of public bidding.

COA also noted that the procurement service of the Department of Budget and Management has not certified the availability of the supplies.

COA explained that procurement on a day to day basis or as the need arises would result to excessive expenditures since the purchases are subject to constant price fluctuation.

Meanwhile, COA noted that in 2003, the town appropriated P2million to augment the P1million it received from the GMA care funds program, which is being extended as loan for livelihood projects without interest.

That year, loans were granted to qualified people’s organizations and non-government organizations and contracts covered the grants as pre-requisite for the release of money. The grantees subsequently opened depository accounts with the rural bank in Bogo and Daanbantayan.

The contracts stated that the amount shall be withdrawn at the end of two to five years depending on the term of the loan and at the time the total accumulated deposits would be equal to the amount of the loan, which will then be remitted to the municipal treasurer as payment of the loan.

The municipal agriculturist supervised the loans until the same are fully paid.

But COA pointed out that the provisions in the contract are “disadvantageous” because they reportedly delay the payment of the loan and other qualified beneficiaries could not avail of the program.

COA also noted that the municipal agricultural office failed to supervise its implementation including the status of their deposits with the local bank.

COA verified that after five years from the time the town began extending loans, only PASAKA-DATOLA Trisikad Operators Association has fully paid its loan amounting to P200,000 and was subsequently granted re-loan of P300,000. A partial payment of P14, 160.50 was subsequently made.

COA learned that the rest of the loan beneficiaries failed to settle their obligations, as some organizations presented bank book deposits but were not presented to the municipal treasurer because the amount accumulated did not equal the principal amount of loan.

As of December 2008, the total overdue account accumulated to P2,700,568.18. — Garry B. Lao/JMO   (FREEMAN NEWS)