COA flags PNP over failure to terminate P1.69-billion deals despite delayed deliveries

State auditors have flagged the Philippine National Police (PNP) for failing to terminate contracts worth a total P1.69 billion even after equipment suppliers failed to meet delivery timelines.

In its 2020 audit report, the Commission Audit (COA) said the Special Action Force (SAF) failed to rescind or terminate 29 contracts with suppliers for its Capability Enhancement Program despite delays and liquidated damages totaling P1.01 billion.

COA noted that all contracts remained undelivered as of December 31, 2020, with damages ranging from 29% to 116% of the contract amount, “clearly over and above the maximum allowed liquidated damages.”

State auditors pointed out that under Republic Act 9184, a procuring entity may rescind or terminate a contract if the cumulative amount of liquidated damages reaches 10% of the total contract value.

COA recommended that the SAF director instruct the bids and awards committee chairman to strictly adhere to Republic Act 9184, ban or blacklist delinquent suppliers, and forfeit the entire performance security bond.

PNP response

In a statement, PNP chief Police General Guillermo Eleazar ordered the SAF and other police units to check the status of the contracts flagged by COA.

“I have directed the leadership of the SAF to determine and immediately report to me why some of these procurement contracts have not materialized,” he said.

The PNP said the contracts were for the acquisition of troop carriers, armored vehicles, machine guns, rifles, grenade and rocket launchers, pistols, mortar, parachutes, and tactical vests, among others.

“These contracts are for the improvement of the elite force’s operational capability kaya’t ang focus natin dito ay talagang ma-i-deliver sa ating SAF ang mga equipment na makatutulong ng malaki sa kanilang operasyon,” Eleazar said.

[These contracts are for the improvement of the elite force’s operational capability and that’s why our focus is to deliver to our SAF the equipment that will help them in their operations.] —NB, GMA News