COA flags AMLC for purchase of iPhone 7 units

The Commission on Audit (COA) has flagged the Anti-Money Laundering Council (AMLC) for purchasing 16 iPhone 7 units for its investigators.

In its 2017 audit report received by AMLC executive director Mel Georgie Racela on April 12, COA said the purchase of Apple iPhone 7 units "did not fully conform" with the approved annual procurement (APP) plan of the agency in 2017.

The AMLC initially requested for the realignment of funds with the Department of Budget and Management for the acquisition of various capital outlays, including the purchase of 24 cellular phones worth P25,000 each.

The agency then said the units will be used by its financial investigators for the conduct of bank inquiry, surveillance and data gathering.

However, the COA said a purchase request dated Dec. 15, 2017 revealed that AMLC reduced the required cellular phones to 16 and opted to purchase iPhone 7 units worth P37,388.88 each.

The audit agency said this led to a variance of P198,222.02, or 49.55 percent higher than the approved budget of P600,000 for the initial request of 24 units.

"The approved budget of P25,000 per unit maybe considered a reasonable price for the purchase of cellular phone that can serve the purpose and meet the technical specifications stated in the aforesaid request," COA said.

"Thus, the purchase of high-end brand of cellular phones resulted in the increase in the unit price to P37,388.88, or 49.55 percent higher than its approved budget per unit of P25,000.00, or a total increase of P198,222.08 for the 16 units," it added.

The COA said AMLC had told them the purchase of iPhone units was based on the more advanced security features of its operating system compared to Android devices and that it was within the bounds of the Government Procurement Reform Act.

"Based on the fact that cellular phones with Apple’s IOS are more secured than those with Android OS, and that investigators are exposed to security risks and the line of communication susceptible to hacking, the Criminal and Investigation Group opted to purchase Apple iPhones instead of Android phones," AMLC had said to state auditors.

However, COA said the security features of the iPhone was not taken into consideration when AMLC prepared its APP. It further said the purchase request was delayed for three months when the procurement should have started in September 2017.

The audit agency recommended that ALMC comply with the Implementing Rules and Regulations of the Government Procurement Reform Act, which states that "all procurement should be within the approved budget, and be carefully planned to minimize or avoid deviations from the approved APP."

It further said that AMLC must "ensure that the proposed guidelines in the preparation of purchase requests is approved and implemented, and will address the delays in the procurement activities." —ALG, GMA News