Sunday, August 26, 2007 COA questions shopping By Minerva B. Gerodias Sun.Star Staff Reporter
THE Cebu Provincial Government violated rules when it allowed shopping as an alternative mode of procuring P10.7 million worth of goods in 2006, the Commission Audit (COA) said.
State auditors said the Capitol’s Bids and Awards Committee (BAC) did not observe Sections 10 and 52 of the Implementing Rules and Regulations (IRR) of the New Government Procurement Reform Act.
Section 10 provides that all purchases must be done through competitive bidding, except for instances provided for in Rule 16 of the IRR.
This rule specifies the different alternative methods of procurement as well as the conditions when these can be used.
On the other hand, Section 52 states that shopping as an alternative method can only be used when: there is an unforeseen contingency requiring immediate purchase, provided that the amount shall not exceed P50,000, and procurement of ordinary or regular office supplies; and acquiring equipment not available in the government procurement service, but for no more than P250,000.
The procurement must not result in the splitting of contracts.
Also, the COA pointed out that the Capitol issued equipment worth P29.8 million to different local government units (LGUs) and some national agencies without requiring acknowledgment receipts.
This, state auditors said, expose the properties to “possible loss or misuse due to the failure to assign persons accountable and responsible (for them).”
It also violates Section 376 of the Local Government Code, which states that the person “in actual physical possession” of government property, or entrusted with its custody and control, shall be responsible for its proper use.
That person “shall exercise proper diligence in the utilization and safekeeping of the properties.”
In response to the procurement rule violations, Provincial Attorney Marino Martinquilla said the Capitol BAC thought it okay to use shopping as the alternative mode of procurement.
“Shopping is one of the modes of procurement. That (the Capitol disregarded rules) is the COA’s contention; but the BAC also has its reasons, nga sakto pud sila (the members believe they were also right). Naa man gyud nga maglahi og opinion (There are always instances when opinions differ),” he said.
Information consultant Rory Jon Sepulveda said the Capitol will “come up with our position” soon.
“It’s not yet a disallowance, but every step of the way manubag gyud ang Provincial administration (the Capitol will take full responsibility),” he assured.
Among the items the auditors mentioned were purchases made for Carmen town’s water system hardware supplies worth P429,147.50; the Capitol building’s repainting materials, P413,853. 80; and Cebu Police Provincial Office (CPPO) personnel’s boots and black suits, P394,000.
The COA report on Capitol’s 2006 transactions also mentioned several more purchases, including gallons of epoxy and carpet tiles for the Cebu International Convention Center (CICC) worth P362,655; Madridejos Waterworks’ electrical supplies, P290,940; the CPPO headquarters’ construction supplies, P212, 008; and Borbon town’s hardware supplies, P204,900.
There were other purchases, but these cost less than P200,000. (MBG)
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