COA hits PNP for unauthorized realignment of P366-M fund

The Philippine National Police (PNP) had realigned P366 million in funds supposedly for the procurement of firearms without the required approval of the Department of Budget and Management (DBM), the Commission on Audit (COA) said in its 2015 annual report.

Published recently on its website, the COA said the PNP in 2012 received from the DBM funds amounting P366,431,998 earmarked for the procurement of 479 units of Cal. 5.56 assault rifles and 12,268 units of 9mm pistols under the PNP’s five-year Capability Enhancement Program (CEP).

The COA said the intended firearms purchase was covered by Agency Procurement Requests (APR) issued in 2012, but the contracts awarded to various suppliers were eventually cancelled.

Instead, the COA report said, the PNP National Headquarters Bids and Awards Committee (PNP-NHQ-BAC) issued another APR in 2013 covering the purchase of 20 double-cab patrol jeeps with 4x4 capabilities each worth P1,459,668.20; one crime data processing system worth P67,238,634; and an automated fingerprint identification system (AFIS) worth P270 million.

A computation prepared by the audit team showed that both the 2012 and 2013 APRs have identical total costs of P366,431,998 down to the last peso.

The COA said the realignment of the fund was made possible by two PNP-NHQ-BAC resolutions dated November 16, 2012 and September 5, 2013 signed by then-PNP chief Director General Alan Purisima.

The Office of the Ombubdsman dismissed Purisima from service in 2015 over administrative offenses in connection with an alleged anomalous courier service deal that the PNP entered into for the delivery firearms licenses of applicants.

In both BAC resolutions, the PNP explained that its “firepower is already sufficient” and that going through with the original procurement will just result in “surplus in PNP firearm inventory.”

The COA, however, said the realignment of the fund was illegal, pointing out that Section 56 of the 2012 General Appropriations Act (GGA) states that “realignment of funds from one allotment class to another shall require prior approval of the DBM.”

The COA further pointed out that despite the PNP’s claim that its firearms inventory was already sufficient, the PNP-NHQ-BAC on December 17, 2012 issued Resolution No. 2012-125 recommending the chief PNP to award a contract for “repeat order” of 14,975 units of 9mm pistols.

In the said resolution, the PNP-NHQ-BAC admitted that the procurement of the pistols was necessary “to provide the much needed equipment and logistical supplies to enhance the capability of police personnel to prevent crimes and other illegal activities.”

“Relatedly, records showed that there was an on-going project for the procurement of the following firearms in CY 2014 and 2015 despite PNP-NHQ BAC Resolution No. 2013-023 discontinuing firepower acquisition in view of sufficiency of supply/inventory,” the COA further noted.

Based on the records obtained by the state auditors, the PNP’s shopping list for 2014 included 6,407 units of caliber 9mm pistols for P249.873 million, 743 units of cal. 9mm sub-machine gun worth P133.74 million, 100 units of cal. 5.56 mm squad automatic weapon worth P43 million, and 12 units of cal. 5.56mm light machine gun worth P5.389 million.

The biddings for these intended procurements are still under the post-qualification stage, the COA said.

Meanwhile, for 2015, the PNP’s procurement program list included 13,663 units of basic assault rifle cal. 5.56mm worth P883.996 million, 4,381 units of basic assault rifle cal. 5.56mm for P283.45 million, and 29 squad automatic weapon Cal. 5.56mm for P12.47 million.

The COA records show that none of the intended procurement for 2015 materialized due to failed bidding and disqualification of lone bidder.

In a reply to the COA report, the PNP Directorate for Logistics (DL) reasoned out that the NHQ-BAC decided to defer the procurement of the assault rifles and pistols under the earmarked P366.431 million fund under the 2012 GAA due to failed biddings.

The DL reasoned out that “considering that the fund allotted for the said procurement was then about to expire,” the NHQ-BAC decided to issue a new APR.

Meanwhile, in the same COA report, the audit body also noted that as of the end of 2015, a total of 16,140 police personnel or 11 percent of the entire police force “are not yet issued with short firearms.”

“Management has not yet attained the 100 percent issuance of short firearm to PNP uniformed personnel required under NAPOLCOM Resolution No. 93-08 approved on April 6, 1993…Of the total reported personnel strength of 124,738 or 85 percent were issued with PNP short firearms and 16,140 or 11 percent of the personnel strength are not yet issued with short firearms,” the COA report read.

“We recommend that management re-evaluate their procurement plan for short firearms in order to complete the procurement and achieve their goal of 100% issuance of short firearm to personnel strength,” it added.

In response to the COA’s finding, the PNP DL said “the PNP has been programming a total of 10,000 units of short firearms annually to attain the 100 percent fill-up to be issued to the newly-recruited PNP personnel.” —KBK, GMA News