Capitol clarifies The FREEMAN report

This is to set the record straight in regard to the news report that appeared today in The FREEMAN written by Mitchelle L. Palaubsanan entitled “Disallowed Capitol transactions worth P126 million not yet settled.”

At the outset, we find the title misleading as it does not mention the particular transactions and years when they were disallowed or suspended.

We wish to clarify that these disallowances and suspensions are attributable to transactions of previous years that were carried over to the present year, even before the current administration took the helm at the Capitol.

In its reports from the Commission on Audit (COA) for calendar years ending December 31, 2018 and December 31, 2019, the Provincial Government’s disallowances and suspensions for said years were already at P126,813,614.43 and P371,980.00; P126,666,567.07 and P371,980.00, respectively.

Pointedly, the Provincial Government of Cebu has not yet received a Notice of Disallowance nor Notice of Suspension for transactions incurred in 2020. We are working with the COA in settling these disallowances from previous years while identifying those accountable. Sales Proceeds amounting to P6,801,777.00 Out of the P6,801,777.90 deposited with the Land Bank Calamity Fund account of the Province from the operations of the Tindahan Sa Kapitolyo, P5,371,171.25 have already been substantiated by the Provincial Accountant’s Office.

The necessary journal entries reconciling the sales proceeds have already made. The remaining balance of P1,430,606.65 is currently being reconciled and a report from the Provincial Accountant will be forwarded to COA.

The purchase of Lucky Me noodles with a total cost of P3,447,360.00 instead of the Quickchow noodles originally procured totaling P2,857,680.00 was an emergency purchase during the height of the pandemic that were delivered to beneficiaries from the fourth and fifth class local government units that needed assistance.

Cancellation of the initial order of Quickchow noodles from Metro Retails Stores Group Inc. (MRSI) was necessary due to their inability to deliver the stocks. A canvass was made for Quickchow noodles from other suppliers but it was determined that they could not supply the requirements of the Provincial Government’s demand.

The urgent need for noodles constrained the Provincial Government to purchase Lucky Me noodles where it, after a canvass was made, still awarded MRSI who had the lowest price among suppliers.

The expired Quickchow noodles had already been replaced and delivered to the Provincial Government last October 19, 2020. These replacement noodles were also delivered to concerned local government units.

Although the purchase orders relating to contracts amounting to P138,297,365.51 did not contain a warranty clause, it is the policy of the Provincial Government to deduct 1% from the contract price as retention to serve as a guarantee deposit for the procurement of goods or services.

Just the same, the Provincial Government has already integrated the warranty clause into the Purchase Order.

On a final note, we thank the writer for recognizing the Unmodified Opinion of the Provincial Government’s financial statements rendered by the Commission on Audit. The 857.178 kilometers of roads constructed by the Provincial Government and its different programs e.g. Tindahan sa Kapitolyo, SUGBUsog Program, and the cash assistance to locally stranded individuals are indeed catalysts for change during the COVID-19 pandemic.

We trust this clarifies.

(Sgd) Atty. Frank Eduard C. Dinsay V

Chief of Staff

Office of the Governor