Rules violated in purchase of food COA: Don't pay caterer P3M yet

CEBU, Philippines - The Commission on Audit (COA) has asked the Cebu City government to justify a payable of over P3 million for food given to teachers, who served during the May 2010 election.

The government auditors found some problems with regards to the procurement process, which did not comply with the rules and regulations.

 COA questioned the city government on the mode of procurement as it reportedly did not go through a competitive public bidding as required in the Government Procurement Reform Act or Republic Act No. 9184.

City accountant Arlene Rentuza, in an interview with The FREEMAN, yesterday confirmed that COA has ordered the suspension of the payment to Red Carpet Catering Services.

The caterer has already demanded for the payment from City Hall as it has been almost ten months since the purchase.

   Rentuza said that COA found some deficiencies in the procurement process.

For instance, the mode of procurement was not competitive considering the elections have long been scheduled, thus should have been anticipated.

   It was also noted that the cost of food ranging from P150 to 200 per person were found by government auditors to be “more than necessary.”

The menu consisted of at least five to seven courses, but it was learned that all courses were not served.

One of the bidders that were on the list was a small eatery and another bidder, also an eatery, has a phone number that is “not yet in service.”

The COA said the city government violated rules when it allowed the use of “shopping” to make the purchase.

COA said the Bids and Awards Committee (BAC) did not observe Sections 10 and 52 of the Implementing Rules and Regulations (IRR) of the New Government Procurement Reform Act.

Under Section 10 of the IRR, all purchases must be done through competitive bidding.

Section 52 cites conditions for “shopping” as an alternative method. The conditions include an unforeseen contingency requiring immediate purchase, provided that the amount shall not exceed P50,000, and procurement of items not available in the government procurement service must not exceed P250,000.

COA said it could not be resolved into emergency purchase considering that the elections have already been set in May.

But Rentuza explained that the suspension noted at the vouchers do not mean that the process and the transactions are illegal.

Rentuza said the observation made by COA was already sent to city treasurer Ofelia Oliva for her comments and response.

In a separate interview with The FREEMAN, Oliva, who was the one who requested the purchase, confirmed the order of COA to suspend payment. She also said that she has already prepared her reply.

The FREEMAN called up Red Carpet Catering Services, but the company declined to comment on the issue. —/NLQ (FREEMAN)