P94.6M worth of supplies of OCD not backed by contracts —COA

State auditors have flagged the Office of Civil Defense (OCD) over P94.6 million in payments for goods and services for COVID-19 response that were not supported by contracts.

In a report, the Commission on Audit (COA) said the OCD paid millions of pesos without a contract to 54 suppliers of various goods and services such as food, accommodation for personnel assisting in COVID-19 testing sites, and sanitation or decontamination.

COA said 35 disbursement vouchers came with an attached disposition form indicating that “due to the exigent needs for the required services and to avoid delays, the necessary procurement documents are dispensed with since the works done are essentially important for COVID-19 Response Operations.”

State auditors said the disposition forms also stated that payments totaling P62.3 million to 35 suppliers shall be done by virtue of “quantum meruit” or a sum of money to be paid when the amount is not indicated in a legally enforceable contract.

No disposition forms were attached to the disbursement vouchers for the remaining P32.3 million in payments to 19 other suppliers, COA said.

In response, the OCD said “the absence or delayed availability of funds served as a bar in the issuance of award of contract.”

“The absence or the issuance of a valid contract due to the unavailability of funds shall not preclude the office from providing continuous support to COVID-19 response,” it said.

The OCD maintained that a Government Procurement Policy Board circular allows procurement even without an approved annual procurement plan “provided there is a document or certification from the budget officer or equivalent showing that there is a budget for the purpose.”

Nonetheless, the OCD vowed to comply with the COA’s recommendation to stop the practice of paying claims based on the quantum meruit principle and ensure that all procured goods are supported with complete documentation.—LDF, GMA News