COA report: Lapu-Lapu paid P4.45 million honoraria for artistic, media services

CEBU, Philippines — The Commission on Audit (COA) flagged the Lapu-Lapu City government for paying P4.445 million in honoraria for artistic, creative production, event organization, and media services instead of procuring the services through the prescribed negotiated procurement process.

In its 2025 audit report, COA said the payments should have undergone Negotiated Procurement (NP) – Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services under Section 53.6 of the 2016 Revised Implementing Rules and Regulations of Republic Act 9184.

COA said using honoraria bypassed safeguards such as market validation, negotiation, and evaluation, with no documented basis showing that the amounts paid were assessed against prevailing market rates.

The audit team recommended that the city procure similar services through the appropriate procurement process and refrain from granting honoraria for services requiring formal procurement.

In response, the OIC-Tourism Officer, who was also the Special Disbursing Officer for the cited cash advances, said the office acted in good faith based on an Executive Order issued by the City Mayor and approvals from concerned offices, which they believed were sufficient compliance with rules on public fund disbursement.

The officer, however, acknowledged the procurement requirement after considering COA’s observation and committed to corrective measures to ensure compliance with the law.

Meanwhile, COA also flagged the display of the name and motto associated with the Local Chief Executive (LCE) on city-owned vehicles and other government properties.

The city paid P18 million for 15 motor vehicles in March 2025, which were later distributed to barangays and city offices.

COA said sample inspection showed the vehicles carried the LCE’s name and motto, contrary to COA Circular No. 2013-004 and DILG Memorandum Circular No. 2010-101.

Similar markings were also found on other city vehicles and at the government-owned Hoops Dome.

The city government subsequently ordered the removal of such markings. On January 26, 2026, the City Administrator directed barangay officials to remove names, pictures, mottos, initials, and other representations associated with city officials from government properties.

The City General Services Office also instructed drivers to remove such stickers and stopped issuing fuel to vehicles that still had them beginning March 1, 2026.

For the Hoops Dome, the Secretary to the Mayor said the markings could not be easily removed, but the City Engineer was directed to explore ways to safely remove them.

COA acknowledged the corrective measures and urged the city to continue monitoring their implementation until all prohibited displays are removed. — /MRM (FREEMAN)