COA lifts disallowance on new car plates

The Commission on Audit (COA) has lifted the Notice of Disallowance (ND) it issued to the Land Transportation Office (LTO) regarding the procurement of license plates.

In a COA decision dated July 9, the COA effectively lifted the notice of disallowance it imposed in 2015 in connection with P477.901 million worth of license plates.

"...Notice of Disallowance... dated July 13, 2015 amounting to P477,901,329.00, on the advance payment to PPI-JKG Philippines Inc., for the supply and delivery of motor vehicles to the LTO is lifted," it said.

The decision was signed by COA Chairperson Michael Aguinaldo and Commissioners Jose Fabia and Roland Pondoc.

In its ruling, COA cited a  Supreme Court decision on January 23, 2018 which declared as constitutional the funding for the P3.8-billion Motor Vehicle License Plate Standardization Program (MVLPSP).

In the same ruling, the Court lifted the temporary restraining order it issued against the LTO in June 2016, which prevented the agency from distributing the plates it procured.

The supply contract was awarded to the joint venture of Knieriem BV Goes and Power Plates Development Concept Inc. (JKG-PPI), which the COA earlier said was not included in LTO's approved budget for 2014.

According to then-Transportation Secretary Emilio Joseph Abaya, the issuance of the notice of disallowance caused the delay in the issuance of license plates.

"It bears stressing that this decision is not a pre-audit, and is without prejudice to the conduct of a post-audit. Consequently, this decision does not foreclose the possibility that there may be findings on post-audit relating to the performance of the contract," the COA decision said.

"In view of the foregoing circumstances, and considering that the procurement for MVLPSP involves public interest, this Commission is constrained to lift the disallowance," it added. — Jon Viktor D. Cabuenas/BM, GMA News