The Ouano administration drew flack from the Commission on Audit (COA) for the P11.55-million purchase.
According to the audit report, the purchase was “excessive and uneconomical.”
Moreover, it was in violation of COA Memorandum Circular 85-55-A, which amends the rules and regulations on the prevention of “irregular, unnecessary, excessive or extravagant expenditures.”
It is not clear if the audit inquiry resulted in the filing of charges.
Mayor Thadeo Ouano, based on the COA audit report, disclaimed any responsibility for the purchase and reportedly told auditors to have supplier—F.A. Faller Trading and Construction—answer their questions instead.
Being the sole distributor, the mayor was quoted as saying, the firm should be the one made to explain the cost of the lamps.
“Refrain from buying expensive items to conserve the resources of the City. Most importantly, the contractor should be compelled to complete the installation of the 105 lampposts to insure their full utilization,” COA 7 advised the city government.
Signed into law on Sept. 8, 1985 by then COA chairman Francisco Tantuico, COA Memorandum Circular 85-55-A aims to “amplify the existing rules and regulations governing the prevention of irregular, unnecessary, excessive or extravagant expenditures.
It likewise aims to update fiscal controls to attain “higher government efficiency and productivity” as well as set “realistic limits and parameters for government spending.”
However, it does not have any special penal provision.
The statute defines excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity and exorbitant price.”
It gives situational examples that include “purchases of luxurious and expensive office furnishings for office buildings.”
“Luxurious furnishings for government buildings are extravagant except those intended for showcase, trade and commerce, promotion of arts and culture and use of dignitaries,” it read.
The anti-graft office is looking into the alleged irregularities committed by certain Department of Public Works and Highways (DPWH) officials when they bought “grossly overpriced” lampposts used for the Asean summit last January.
Acting Deputy Ombudsman Virginia Santiago, in an interview last Tuesday, expanded the investigation to include the possible involvement of Mandaue City Mayor Thadeo Ouano and other officials.
It was alleged that lampposts bought for Mandaue City were the most expensive among all other already “grossly overpriced” units.
During the ombudsman hearing, DPWH 7 Assistant Director Marlina Alvizo alleged that the program of works for the purchase of the 124 decorative lampposts for Mandaue City was prepared by Mandaue officials and approved by Mayor Ouano.
The 124 lampposts, set apart by their dome top and installed from the Ouano Wharf to UN Avenue, cost P224,000 each.
