Office of VP defends calamity relief deals

MANILA, Philippines – The Office of the Vice President said it tapped the services of a Makati-based company for the supply of basic goods for calamity victims because of the firm’s good record of completing transactions.

In a statement, the OVP said it sent a letter to the Commission on Audit (COA) in June explaining its decision to tap the services of an unnamed Makati-based supplier, which is supposedly operating without a business permit.

“We were more concerned about the timely delivery and availability of the goods in the calamity areas without prejudice to pricing which is advantageous to the government,” OVP assistant secretary Rosalie Licauco said in a letter to state auditor Marife Tubana.

Licauco explained that the OVP ordinarily transacts with private firms for the supply of basic commodities such as canned goods, noodles and biscuits, as part of relief operations in areas struck by calamity.

Rice requirement, meanwhile, is procured from the National Food Authority, according to the OVP.

“Since our primary supplier is located within Luzon areas only, requirement for Visayas and Mindanao, if not available from local suppliers within the area of calamity, were mostly procured from the supplier in question,” the OVP letter to COA read.

“It has the capability of serving large quantity of goods and delivered the same immediately and directly to the calamity areas, which were mostly far-flung provinces,” it added, referring to the supplier being questioned.

Bias of ex-COA chief

But OVP media affairs head Joey Salgado said the latest audit report reflected the bias of former COA chairman Grace Pulido-Tan against Vice President Jejomar Binay, who is running for president under the opposition United Nationalist Alliance.

“Prior years, COA has commended the OVP,” Salgado said in a text message to The STAR.

In its report, COA also noted unliquidated Priority Development Assistance Fund or pork barrel of the Vice President amounting to P95 million in 2012 and 2013.

But citing information from the OVP’s accounting department, Salgado said the fund transfers from the OVP were placed in various hospitals and used for medical assistance to patients.

“Each fund transfer (was) covered by a memorandum of understanding and subject for liquidation by submitting COA audit report from each hospital,” said Salgado.

“OVP has sent demand letters to these agencies. Liquidation process is on-going,” he added.

Earlier, COA said a probe should be conducted so that those found responsible can be held liable for entering into a negotiated contract for the supply and delivery of goods.

A verification of the business or mayor’s permit of one of the suppliers showed that the permit is only for non-essential goods.

The COA report also said that the supplier’s barangay clearance indicated that its line of business is trading of office supplies, which are considered non-essential goods.

State auditors noted that during an ocular inspection of the supplier’s business address, the only commodities on display were office supplies, consistent with the permit issued by the Makati City government.

“However, the supplier’s transactions with the OVP were contrary to the business permit when the delivered goods were essential commodities,” the audit team said, noting that the supplier started transacting business with the OVP in 2011.

Records show the supplier’s transaction with the OVP amounted to P26.5 million in 2014, P19.732 million in 2013, P28.524 million in 2012, and P19.960 million in 2011.

Reacting to the COA report, UNA secretary general JV Bautista said the government is using the agency to continue its demolition job against the Vice President.

“From 2011 until 2013, COA has been commending the OVP for its programs and its compliance with procedures. But while we are puzzled by the turnaround, we are not the least surprised,” said Bautista.

“This was conducted in 2014 when the former COA chairman suddenly saw red flags all over despite prior findings of regularity in previous COA audits of Makati projects. This report on the OVP is obviously heavily influenced by the subjective partisanship of the former COA chair,” he added.

Bautista called on COA Chairman Michael Aguinaldo, a former member of the ruling Liberal Party, to take a leave from his post.

Aguinaldo was deputy executive secretary for legal affairs of President Aquino prior to his appointed to COA.