Province failed to rectify error found in 2004 - COA

CEBU, Philippines – The Commission on Audit (COA), in a recent report, said that Province of Cebu has disregarded its recommendation almost six years regarding infrastructure contracts worth P102 million.

The state auditors recommended that before Governor Gwendolyn Garcia would enter into such contracts, she needs the authority of the Provincial Board to do so as a matter of procedure.

The COA said that its findings in the audit done in December 2004, were not corrected.

In the COA financial audit on the Province of Cebu for the period ending December 2004, the audit team reported that, "Several contracts in the total amount of P102,092,841.47 were not supported with a Sangguniang Panlalawigan resolution authorizing the Provincial Governor to enter into a contract, as required under Section 22 of R.A. No. 7160."

The audit team then recommended that, "Henceforth, the local chief executive must secure a Sanggunian resolution authorizing the former to enter into a contract as provided under Section 22 of R.A. No. 7160."

Sometime in 2006, then Provincial Board Members Gabriel Luis Quisumbing, Estrella Yapha, Victoria Corominas and Raul Bacaltos filed a civil case before the Regional Trial Court against Gov. Gwendolyn Garcia and COA regional officials.

Gov. Garcia sought the reconsideration of the findings and recommendation of the COA.

However, without waiting for the resolution of the reconsideration sought, she instituted an action for declaratory relief before the RTC of Cebu City.

Delfin P. Aguilar, Helen S. Hilayo and Roy L. Ursal in their official capacities as Cluster Director IV, Regional Cluster Director and Regional Legal and Adjudication Director of COA, respectively, were impleaded as respondents.

The Sangguniang Panlalawigan of the Province of Cebu, represented by Vice-Governor Gregorio Sanchez, Jr., was also impleaded as respondent.

Alleging that the infrastructure contracts subject of the audit report complied with the bidding procedures provided under R.A. No. 9184 or the Government Procurement Reform Act and were entered into pursuant to the general and/or supplemental appropriation ordinances passed by the Sangguniang Panlalawigan, Gov. Garcia alleged that a separate authority to enter into such contracts was no longer necessary.

On the basis of the parties' respective memoranda, the trial court rendered the assailed Decision dated July 11, 2006, declaring that Gov. Garcia need not secure prior authorization from the Sangguniang Panlalawigan of Cebu before entering into the questioned contracts.

The trial court denied the motion for reconsideration filed by Quisumbing, Bacaltos, Carmiano Kintanar, Jose Ma. Gastardo, and Agnes Magpale, in their capacities as members of the Sangguniang Panlalawigan of Cebu, in an Order dated October 25, 2006.

This prompted the petitioners to elevate the case to the Supreme Court.

In its audit report covering the period of 2007, COA reiterated its observation and recommendation and the reason for not implementing the same was that the case is pending before the Supreme Court.

In 2008, COA again reiterated its observation and recommendation and the reason for not implementing the same was that the subject case is pending before the RTC per SC en banc decision dated December 8, 2008. (FREEMAN)