Rama to "take risk" in paying caterer

CEBU, Philippines - Cebu City Mayor Michael Rama yesterday said the City Government will take the risk in paying the food they used during the elections even if the Commission on Audit (COA) ordered for the suspension of the over P4-million payment to Red Carpet Catering Services. 

“Nganong dili man nato bayaran nga ato man nang gikaon?” Rama said.

 For him, it would have been a bigger problem if food wasn’t served to the teachers who served in last year’s elections.

The City Treasurer’s Office bought packed meals from Red Carpet Catering Services to feed teachers who did poll duties in the 2010 elections.

 But COA ordered the suspension of the release of payment because the usual bidding process was not followed.

 The government auditors found that it reportedly did not go through a competitive public bidding as required by the Government Procurement Reform Act or Republic Act No. 9184.

 The City Treasurer’s Office explained that the request was considered emergency in nature.

Acknowledging the procedural lapses that incurred, Rama said the purchase was done “in good faith” and that this is an “isolated” case. 

Rama said that it is best to wait for the post-audit to be conducted by the COA. 

The post-audit would include the “final determination” on whether a transaction is illegal, irregular, extravagant, excessive, unconscionable or unnecessary. 

 Like City Accountant Marietta Gumia, assistant city treasurer for administration Emma Villarete will also register her objection in signing the documents to release the payment. 

 Villarete, who signed the voucher by the authority of the city  treasurer, said her objection is pursuant to Section 342 of the Local Government Code that finds the irregularities of the supporting documents. 

 “Likewise in concurrence with City Accountant, it is respectfully prayed that no notice of disallowance may arise during post-audit transaction of COA on the matter,” Villarete said. 

COA head lawyer Eva Cabrera said that it is up to the city government to pay the caterer even in the absence of the proper procedure. 

However, Cabrera clarified that their agency has yet to give its recommendation on the whole transaction, which they will do on post-audit. — (FREEMAN)