COA to PCOO: File charges vs. officials involved in ASEAN Summit procurement irregularities

The Commission on Audit has urged the management of the Presidential Communications Operations Office (PCOO) to file charges against officials involved in the allegedly anomalous disbursement of P38.8 million for the country's hosting of the ASEAN Summit last year.

In its 2017 audit report, the COA said the rental or lease of IT equipment for P4.04 million was more expensive than the selling price by P946,872 and that costs for handmade soaps from three suppliers were higher than the approved budget of P758,000.

The COA also said purchase orders and payments amounting to P27.5 million and P7.26 million for various goods/services and rental of passenger vans, respectively, were split.

“We recommended that management file the appropriate charges against any erring officials, as prescribed under Section 65.1 of the Revised Implementing Rules of Republic Act 9184, for taking action that favored a particular supplier/s,” the COA said.

The COA said the government could have saved money if the IT equipment were purchased at P3,074,268 instead of renting it for P4,039,140.

“Moreover, additional savings would have been secured, considering that no further acquisition by the agency of similar equipment is necessary, if same had already been procured,” the COA said.

The PCOO argued it was compelled to lease equipment to address specific IT-related requirements for ASEAN events because no budget was allocated for capital outlay.

However, the COA said the PCOO could have taken advantage of acquiring IT equipment, “if not for their own use, for the use of other government agencies who are much in need of them.”

The COA also found out a total of P14,587,182.40 for the procurement of delicacy bags, handmade soaps, medical kits, umbrellas, shirts, and ASEAN jackets was split into 19 purchase orders and were bagged by four suppliers.

A total of P4,405,653 for the procurement of WiFi internet access was split into seven purchase orders and were distributed to two suppliers.

The PCOO also split into eight purchase orders the rental fee of P7,264,450 for VIP passenger vans for events in Metro Manila, Tagaytay and Clark, Pampanga. It was awarded to only supplier, DLCL Transport, with purchase order amounts ranging P727,050 to P998,550.

The procurement of printed materials, meanwhile, cost P8,510,700 and was split into 12 purchase orders that were given to two suppliers.   

“Resorting to splitting deprived the agency of the opportunity to take advantage of possible bulk discounts or lowest responsive offer if the procurements were done through public bidding,” the COA said, adding the split purchases were prepared on the same date or about the same time, from the same and or different suppliers, in violation of COA Circular No. 76-41.

The Revised Implementing Rules and Regulations of the Government Procurement Act also prohibits “splitting of contracts which exceed procedural purchase limits to avoid competitive bidding or to circumvent the limits of approving or procurement authority.”

The PCOO denied there was splitting of contracts, noting each purchase was made to address separate transaction needs, for specific and independent ASEAN-related events, held in different locations, and requested on separate dates.

The COA also found that PCOO's travel expenses went up to P162.32 million in 2017 from P30.11 million in 2016 owing to local and foreign trips of President Rodrigo Duterte and the Philippines' chairmanship of ASEAN.

PCOO's expenses for rent or lease, supplies and materials, janitorial and security services, and repairs and maintenance also soared last year. — KBK/RSJ, GMA News