COA questions purchase of certificate holders

CEBU, Philippines – Mandaue City purchased P1.1 million worth of certificate holders which the Commission on Audit believed was laced with irregularities due to the city's failure to comply with the proper procurement process.

COA said the purchase of 9,454 certificate holders at P1,194,389.54 from Cebu File System Inc. (CFSI) last July 17, 2014 did not undergo the proper procurement process.

Based on COA's observation, the Bids and Awards Committee  did not post the scheduled bidding in Philippine Government ElectronicProcurement System (PHILGEPS), which is required in Republic Act 9184 or the Government Procurement Reform Act.

COA, in its latest annual report, reminded Mandaue City of Section 22.1 of the said law which states that for contracts worth P1 million or more, the BAC shall have at least one pre-conference to explain the requirements, terms and conditions to the bidders, something which the said committee failed to do.

The same law also stipulates that bid bulletin should be posted on PhilGeps as part of the process.

COA also noted that the contract between the city and CFSI was consummated "despite the non-submission of the winning bidder" of the required performance bond within 10 days from receipt of the notice to proceed, which is contrary to the same law.

Also, it said BAC did not disqualify CFSI, even if it was the lone bidder, for its failure to post the performance bond within the 10-day period and declare a failure of bidding. Instead, it proceeded with the procurement process.

COA said it already sent a notice of suspension to the city last February 16.

It also ordered the city's BAC to explain the basis on the awarding of the contract to CFSI despite the defiencies it committed.

It also ordered it to follow the rules stated in RA 9184 and to perform its tasks as required for an "efficient and effective procurement process," or be accountable for another remiss next time. (FREEMAN)