STATE auditors have recommended the filing of charges against officials of the Presidential Communications Operations Office (PCOO) accountable for the P38 million worth of "deficient" disbursements for the country's hosting of the Association of the Southeast Asian Nations (Asean) in 2017.
The Commission on Audit's (COA) recommendation to sue erring PCOO officials stemmed from supposed irregularities in the 17.7 percent or P38.807 million out of the P219.24 million spent for the Asean activities held in the country last year.
The COA said the supposedly anomalous disbursements were in violation of Section 65.1 of the 2016 Revised Implementing Rules and Regulations of Republic Act (RA) 9184, otherwise known as the Government Procurement Reform Act.
"File the appropriate charges against any erring officials, as prescribed under Section 65.1 of the Revised IRR of RA No. 9184, for taking particular action that favored a particular supplier/s, when necessary," COA said in its 2017 audit report.
State auditors found that the rental or lease of information technology (IT) equipment for P4.039 million was more expensive than the selling price by P946,872.
"Verification of purchase orders and inspection of IT equipment such as laptops, desktops, cameras, and camera lenses delivered on various dates in 2017 at the Property Section of PCOO disclosed that IT equipment were leased/ rented for a period of two to five months from various suppliers for a cost of P4,039,140.00," the COA report read.
State auditors' inquiries from various IT suppliers revealed that the most expensive supplier would have cost a total of P3.074 million.
Had the PCOO decided to procure the equipment valued only at P3.074 million, it could have saved P964,872 and even retained ownership of the equipment, the COA stressed.
"Purchasing from the most expensive supplier could have yielded a savings of P964,872.00. More importantly, ownership of said various IT equipment could have been retained by the agency," it said.
The COA also flagged the purchase orders and payments for various goods and services amounting to P27.503 million and the rental of passenger vans worth P7.264 million.
It noted that the PCOO split the payments despite being purchased or leased on the same date or time, thus violating the COA Circular 76-41, which strictly prohibits splitting of purchase orders, deliveries, and payments.
In a statement on Friday, July 20, the PCOO said the reported "indiscretions" in the disbursement of funds for the 2017 Asean event were now being investigated, upon the instruction of Communications Secretary Jose Ruperto Martin Andanar.
"On March 2018, the PCOO received Audit Observation Memorandums on the aforementioned procurement irregularities," the PCOO said.
"As ordered by the Secretary, the PCOO Legal Department is conducting an investigation on the matter. Show cause memorandums have been issued and an investigation report is forthcoming," it added.
The Palace's communications team, however, refused to spill more details, with regard to the ongoing investigation so as to avoid "trial by publicity."
The PCOO assured the public that it would undertake "all needed actions and reforms" to uphold the department's integrity.
It also revealed that it created an interim procurement service unit to strengthen its procurement process and ensure strict compliance with the Government Procurement Reform Act. (SunStar Philippines)