SINCE the Commission on Audit (COA) will not exempt Cebu City Hall’s fuel purchase from pre-audit, department heads and barangay officials were asked to file their requests for purchases and infrastructure project payments earlier than usual.

City Administrator Francisco Fernandez said that aside from fuel, payments for asphalt, infrastructure projects and cash assistance to nongovernment organizations have also been delayed because of the pre-audit mechanism.

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General Services Office (GSO) Chief Ester Cubero and Councilor Augustus Pe Jr. want COA to exempt from the pre-audit the purchase of fuel and other supplies that can hamper the delivery of basic services.

COA said this cannot be done at this time.

Fernandez said the different offices at City Hall and the barangays will just have to process their purchase requests and payment vouchers earlier to avoid late payments and delays in services.

Delayed

“Most of the payments have been delayed so some of our contractors have been protesting. Even our asphalting project was delayed because for one week last month, we have not been getting any delivery because of the delays in the payment,” Fernandez said.

He said, though, that like the situation at the City’s fuel depot, officials were able to address the problem immediately.

“We just have to anticipate all these things, we have to work and live with it. Let’s start early on the process and whatever COA requires in the pre-audit, let’s prepare it and we’ll give it to them right away,” Fernandez said.

The pre-audit helps public officials avoid a disallowance and complaints of graft, but it also adds another layer to bureaucracy, he lamented.

COA Circular 2009-002 revived the pre-audit of cash advances, payments of salaries and terminal leave benefits, infrastructure projects, road right-of-way, procurement of capital assets, goods and services, and the release of funds to nongovernment organizations effective last July 1.

A pre-audit is the examination of documents supporting a transaction or series of transactions before these are paid for and recorded.

Aside from processing the request one month before the scheduled date of payment, Cubero said she will ask for additional fuel since the City acquired new vehicles recently.

From 140,000 liters of diesel a month, she will request 150,000 liters starting this January.

For seven hours last Tuesday, the City’s depot did not have fuel and was not able to provide fuel to three police cars and some barangay vehicles.

But Cebu City Police Office Director Patrocinio Comendador and Department of Public Services (DPS) Chief Dionisio Gualiza said services were not hampered at all, since most of their vehicles got their fuel supply last Monday.

Total Philippines refused to deliver the 12,000 liters of fuel it was supposed to deliver last Monday because the City had yet to release the payment for fuel supply for September, October and November amounting to P12.6 million.

City Hall also owes Pilipinas Shell some P3.2 million.

The delivery was made at 2:45 p.m. last Tuesday, after Cubero promised the checks would be released before Friday.

The checks for both suppliers were issued yesterday but as of 4:30 p.m., had yet to be picked up.

COA Cebu City head Josette Rodriguez clarified yesterday that her office did not exempt the City’s purchase of fuel from the pre-audit mechanism.

She said, though, that she referred one of the transactions to the COA regional director, for his comment on the failure of the GSO to comply with one of the pre-audit requirements. She has yet to receive a reply.

In separate interviews yesterday, Pe and Comendador said police operations in the city were not affected by the absence of fuel supply the other day.

Pe said that reports that some policemen had to contribute money from their own pockets just so they could buy fuel for their police car “were exaggerated.”

“Nahutdan ug gasolina Tuesday morning and in the afternoon, naka-deliver ra so dili gyud angay maabalaka ang publiko. That has been taken care of already,” said Pe, chairman of the council committee on public order and safety.

Comendador said he saw a lapse in communication in the police unit that did not have fuel supply because had the shortage been reported to his superiors, they could
have addressed it immediately.

At the Police Regional Office (PRO) 7, Director Lani-o Nerez said there was also a delay in gasoline allocations for October, probably because of the series of storms that hit Luzon.

Nerez said the fuel supply for Central Visayas for November has already been released.

Nerez said the delay did not hamper police operations.

Cebu Provincial Police Office Director Jesus Gaquing, when sought for comment about the lack of gasoline supply last month, said it only had “a little effect” on them because of the local governments in Cebu providing the police monthly fuel allocations.

Also yesterday, the Cebu City Council committee on energy recommended the approval of the agreement between the City Government and Total (Philippines) Corp. for
the City’s fuel supply.

The committee, headed by City Councilor Sylvan Jakosalem, did not object to the proposed arrangement for the company to provide the City’s is fuel requirements and to install the needed amenities and equipment for a depot.

Aside from supplying fuel, Total is also obligated to provide an underground tank, a dispensing pump and a canopy for the gas station.

Under the proposed supply agreement, petroleum products provided by Total to the City are not intended for resale.

These will cost P25.75 per liter for diesel and P32 per
liter for unleaded gasoline.

The City, on the other hand, must buy an estimated 150,000 liters of diesel and 50,000 liters of gasoline from Total.

If approved, the agreement will remain in force for five years, subject to renewal each year.

That means that the GSO no longer has to canvass for the lowest fuel prices each quarter, as the City will have a fixed supplier until 2014. (LCR/RHM/With JTG)

Published in the Sun.Star Cebu newspaper on November 12, 2009.