COA: Zambales bought P35 million in canned goods from construction retailer amid COVID-19 lockdown

The Commission on Audit (COA) has questioned the Zambales government’s P61-million purchase of food and equipment related to the  COVID-19 lockdown after it found that the LGU bought from firms selling books and agricultural supplies.

In an audit report, state auditors said the Zambales LGU awarded contracts for the purchase of  rice, canned goods, janitorial supplies, and equipment to LMVJ Trading, J. Delos Santos Poultry and Agricultural Supply, Ronie’s Trading, and GMJ Trading.

COA said its verification showed that the four suppliers were awarded contracts despite having lines of businesses registered with the Bureau of Internal Revenue that are not related to the goods they sold the provincial government.

State auditors said the Zambales government purchased P12 million worth of rice, janitorial supplies, and equipment from Bulacan-based LMVJ Trading, a firm registered  with the BIR as a retailer of books, office and school supplies, and computers.

Zambales also bought P10 million worth of rice from local business J. Delos Santos Poultry and Agricultural Supply, which is registered as a retailer of agricultural farm supplies and equipment with the BIR.

The Zambales government bought P35 million in canned goods from Ronie’s Trading, another local business that is registered with the BIR as a retailer of construction materials, equipment, office and school supplies, newspapers, magazines, and books.

COA also found that Zambales purchased P3 million worth of canned goods from GMJ Trading, a firm registered as a seller of office and school supplies, newspapers, magazines, books, as well as food, beverages, and tobacco.

“In view of the foregoing lapses, the discrepancies noted in the permits and registrations of the suppliers and the subsequent awarding of the contracts in their favor is questionable,” state auditors said.

COA said it was the duty of the local Bids and Awards Committee (BAC) “to determine whether the Mayor's Permit and BIR Certificate of Registration issued to the supplier authorizes it to engage in the business stated therein.”

The BAC chairman explained that the contracts were bought under the Emergency Procurement-Bayanihan Act, while the provincial accountant assured that the purchases were done in accordance with Interior and Budget Department circulars.

State auditors recommended that the local chief executive instruct the BAC to “fully scrutinize” documents submitted by suppliers and justify why such documents were accepted “without proper verification or validation.” —NB, GMA News