Here is the excerpt of the COA Annual Audit Report for 2012 relative to
the purchases of construction materials by the municipality donated to
different barangays:
“Purchases
of construction materials donated to the different barangays in the total
amount P2,112,247.32 were not done through competitive public bidding, contrary
to the pertinent provisions of the Government Procurement Reform Act (RA 9184)
and its Revised Implementing Rules and Regulations. Moreover, Disbursement Vouchers and
supporting documents totaling P1,779,457.50 were not submitted for audit, thus,
precluded the audit team from determining the propriety and correctness of the
recorded transactions.
Sec. 10, Rule IV of the General Provisions of
Republic Act No. 9184 states that all procurement shall be done through
competitive public bidding except as provided in Rule XVI of the IRR.
Audit of Donation Expense account disclosed that
the LGU procured construction materials, labor and equipment rental for
barangay-wide projects in the municipality. It was however observed that these
projects were not directly implemented by the LGU but the materials purchased
were given to the barangay concerned as assistance in kind. The costs of labor
and rental equipment were directly given to the payees as shown below:
Payee
|
Particular
|
Amount
|
Pioneer Steel
|
Const. Materials – Brgys not identified
|
P 1,027,163.50
|
Pioneer Steel
|
St Light –Brgy San Agustin
|
40,170.00
|
Pioneer Steel
|
Road Rehab – Brgy Balante
|
65,380.50
|
Pioneer Steel
|
Pathway Concreting- Brgy Baloog
|
28,618.00
|
Pioneer Steel
|
Imprv’t Water System – Brgy Inuntan
|
5,900.00
|
Pioneer Steel
|
Improv’tMPHal- Brgy Villa Aurora
|
99,684.32
|
Pioneer Steel
|
Improv’t DCC- Brgy Inuntan
|
6,340.00
|
Pioneer Steel
|
Materials – Building Maintenance
|
97,078.00
|
Pioneer Steel
|
Materials – Various Municipal projects
|
655,216.00
|
Pioneer Steel
|
Rehab Phase II – Brgy Dolongan
|
71,797.00
|
Pioneer Steel
|
Expansion and concreting So Plaza &So Rono
|
14,900.00
|
Total Construction
Materials.
|
P2,254,077.32
|
|
Various Payees
|
Labor (Various Brgy Projects)
|
1,089,750.00
|
Various Payees
|
Equipment Rental (Various Projects)
|
48,100.00
|
Grand Total
|
P3,391,927.32
|
|
The total amount paid for various Construction
Materials of P2,112,247.32 was intended for barangay-wide development projects
(see Annex K). This was procured from only one supplier in the name of Pioneer
Steel and was purchased on different dates during the year.
Three transactions in the amount of P1,027,163.50 –
no identified projects, P97,078.00–building Maintenance, and
P655,216.00-Various Municipal Projects or a total of P1,779,457.50 (see Annex
K) has no Disbursement vouchers and other supporting documents. No other
document was submitted which will show that the procurement was conducted
through competitive public bidding in accordance with Sec 10 of RA 9160 even if
the amount of each purchases requires such public bidding.
The other construction materials purchased in
smaller amounts were supported only with canvass papers and program of
works. However there were no BAC
resolutions attached stating the reasons that the transactions should be made
using alternative mode (shopping). Moreover all the transactions were not supported
with barangay resolutions requesting for construction materials.
Payment for
labor expenses in the total amount of P1,089,750.00 (see Annex K) for the
different projects were made through Pakyaw contract with Pakyaw groups. The transactions are supported
with invitation to bid, notice of award etc., but the same were not also
supported with BAC resolutions stating the circumstances during the bidding
particularly on the information that the particular group has the lowest amount
of bid. Also the same were not supported with barangay resolutions requesting
assistance from the municipality.
The
failure to observe the proper procedures on procurement as required in RA 9184
and lack of complete documentation of the transactions more particularly the
“Disbursement Vouchers” raised doubt on the legality and propriety of the
transactions.
During the exit conference, management averred that
transactions were properly supported with complete documents but agreed to
comply with the lacking supporting documents.
We recommend that management should strictly adhere
to the pertinent provisions of RA 9184 and its Revised Implementing Rules and
Regulations in all its procurement activities.
This recommendation is without prejudice to the issuance of Notices of
Suspension and/or Disallowance resulting from post-audit of transactions."
Source: www.coa.gov.ph