26 Suroy Suroy buses COA, DILG opinions differ

CEBU, Philippines - The Commission on Audit (COA) and the Department of Interior and Local Government (DILG) have different views on the 26 units of tourist buses intended for the Suroy Suroy sa Sugbo project of the Provincial Government of Cebu.

The units amounting to P67 million was purchased before Governor Gwendolyn Garcia was suspended last year, reportedly in the absence of authority from the Provincial Board.

This prompted acting Governor Agnes Magpale to solicit the opinion of COA whether the processing of the payment may proceed while the supplier, ConEquip Philippines, also sought the same from the DILG.

In her reply dated May 21, 2013, lawyer Eva Cabrera, state auditor V of COA-Cebu, cited Circular No. 2011-002 dated July 22, 2011 which reaffirms the concept that fiscal responsibility resides with management.

The law provides that all resources of the government shall be managed, expended or utilized in accordance with law or regulations and safeguarded against loss or wastage resulting from illegal or improper disposition with a view to ensuring efficiency, economy and effectiveness in the operations of government.

"The primary responsibility for faithful adherence to this policy rests with the head of the government agency concerned," said Cabrera.

On the other hand, DILG-7 regional director Ananias Villacorta in his letter dated April 24, 2012 to Ralph Clinton Tio, managing director of ConEquip Philippines in Cebu, only cited the general rule as provided in the Local Government Code saying that the regular courts have the authority to declare the status of contract they entered into with the Provincial Governor.

Villacorta said that as a general rule, a contract entered into by the Provincial Governor without the prior authority from the Sangguniang Panlalawigan is considered an unenforceable contract as against the province but it can be enforced as a personal liability of the one who entered into the contract.

However, Villacorta stressed that subject contract is "susceptible to ratification, express or implied".

The PB earlier ratified the contract but later recalled the resolution passed, which Villacorta said the recall has no more bearing.

"Although express ratification would have been more preferred, the law allowed implied ratification of unenforceable contracts such as the one entered into by the currently suspended Provincial Governor Gwendolyn F. Garcia and your company," Villacorta told Tio in his letter.

Villacorta said that the defect has already been cured by their acceptance and retention of the benefits flowing therefrom.

"Thus, if the contract has already been ratified as earlier elucidated, then the provincial government can be held liable for the payment of goods delivered under the contract," added Villacorta

"We wanted a categorical answer," Magpale told reporters yesterday.

Magpale said the replies of COA and DILG to the two queries will be reviewed by the Capitol lawyer.  (FREEMAN)