COA: Rules not followed in expenses for Talisay recovery facilities

CEBU, Philippines - Over P1.124 million in government funds for filling materials at the sanitary landfill material recovery facilities in Barangay Tapul in Talisay City were carried out through “piecemeal” purchases.

This is according to the Commission on Audit (COA) in its audit observation memorandum (AOM) dated August 9, 2013.

COA said the AOM tackled issues of former mayor and now City Councilor Socrates Fernandez.

In the report, COA said the purchase requisitions and contracts for the procurement of three items amounting to P1,124,142.86 were done through “splitting”.

COA said City Hall violated Rule II, Section 7 of the Republic Act 9184 (Government Procurement Act).

The City Government also failed to adhere to audit rules “thus causing piecemeal purchases and splitting of Requisitions and Purchase Orders contrary to COA Circular 76-41 dated July 30, 1976.”

Furthermore, the Bids and Awards Committee Secretariat failed to post the invitation to submit price quotations and notice of award in the PhilGEPS resulting in the irregular disbursement of funds.

Records disclosed that the city procured filling materials for the rehabilitation of sanitary landfill material recovery facilities in Tapul. The contracts of agreements were dated January 21, 2013; February 25, 2013 and March 12, 2013. The invitation or request for submission of price quotations and notice of award were not posted in the PhilGEPS to promote transparency and efficiency in the procurement process.

“It clearly shows that there was an apparent splitting of purchase requisitions and contracts to avoid public bidding,” the COA report reads.

It further added that the amount purchase or requisition of the item would have exceeded P400,000 and the only procurement mode to acquire is thru competitive bidding.

If goods are exclusively manufactured, COA said the procurement through negotiation may be availed and the use of different alternative modes of procurement can only be avail if the purchase is below P400,000. (FREEMAN)