CEBU, Philippines - Why was the service contract between the Talisay City government and Blackpearl Security Agency implemented even if it did not bear the required signature of the city accountant?
This was among the contents of the Annual Audit Report made by the Commission on Audit on Talisay City's transactions in 2014.
State auditors said the move violated Letter of Instruction No. 968 and Presidential Decree 1445 or the Government Auditing Code of the Philippines.
Upon verification, COA found out that the P3.5-million contract with the security agency for the period of April to June 2014 was perfected by the city even without signature from City Accountant Viluzminda Villarante as witness.
Section 1 of the LOI states that no contract involving expenditures of public funds by any government agency shall be entered into or authorized unless proper accounting officials of the agency concerned shall certify it.
It was also discovered that the Community Tax Certificate or cedula of contracting parties were not indicated on the contract. Auditors were already informed about the deficiency last February 2, 2015 per audit observation memorandum.
Sought for comment, Villarante said she already informed City Administrator John Yre De los Reyes that no money related to the contract has been disbursed yet.
De los Reyes, for his part, did not make any further comment, saying the matter is already the subject of a complaint before the Ombudsman.
John Yre, his father Mayor Johnny De los Reyes, and two other officials are facing charges before the Ombudsman-Visayas for allegedly hiring 91 security guards from Black Pearl without competitive bidding. — Garry B. Lao (FREEMAN)