THE Commission on Audit (COA) has flagged the Cebu City Government’s hiring of consultants, citing multiple irregularities in contracts amounting to P19.8 million in 2024.
In its audit report for fiscal year 2024, COA questioned the appointment of 92 consultants and raised concerns about procedural lapses, vague terms of reference (TOR) and payments made before contracts were perfected.
Auditors found that several consultants were hired for general functions such as “planning and coordination,” tasks which COA said could be performed by regular city employees. The report noted that the City spent around P3.8 million in 2024 on 14 consultants assigned such responsibilities.
Lacking qualifications
COA also observed that some consultants were engaged despite lacking relevant qualifications, while 12 were found to have performed tasks that were neither “highly technical” nor “policy-determining,” contrary to the standards for consultancy engagements.
The report further cited that 87 contracts, valued at over P17.3 million, were signed after services had already started. Of this amount, P2.8 million had been paid even before formal agreements were in place.
Auditors warned that services rendered without perfected contracts do not legally bind the City to pay, thereby endangering public funds.
Several contracts were also awarded through the negotiated procurement mode without proper justification, and many lacked required supporting documents such as financial statements, further complicating transparency and accountability.
While recognizing the role of consultants, COA emphasized that engagements must comply strictly with procurement laws to prevent misuse of government funds.
Recommendations
The City was urged to revise TORs, enforce procurement regulations and assess consultant performance to avoid redundancy and inefficiency.
In response, the bids and awards committee (BAC) on infrastructure and consulting services said it will review the TORs to determine if the cited consultants met requirements. The BAC will also seek legal and technical clarification from the end-user unit and amend contracts as needed. / EHP