The municipal government of Virac purchased P16.51 million worth of rice and other goods during the pandemic from suppliers who did not comply with documentary requirements.
This was among the key findings of the Commission on Audit (COA) on its review of transactions entered into by the Virac LGU in 2020.
According to the report, the local government received P16.74 million from the Bayanihan Grant to Cities and Municipalities, equivalent to its one-month Internal Revenue Allotment (IRA) as assistance during the health crisis to cover COVID-19 related programs, projects and activities, and expenses.
The LGU charged to the BGCM grant P14.7 million for food commodities, P1.6 million for Personal Protective Equipment (PPE), P301,790.00 for medicines and vitamins and P86,790.00 for disinfectants.
An audit of the utilization of the BGCM fund, the report said, disclosed that nine out of 12 Disbursement Vouchers amounting to P16.51 million were not sufficiently supported with the Mayor’s Permit and Income
Tax Returns (ITR).
Six checks were paid out on the same day, May 12, 2020, with P6.57 million going to commercial rice purchases, another P1.45 million for commercial rice and sardines, and P1.69 million for instant noodles.
The following day, three more checks were released to the suppliers: P3 million for powdered milk drink, P2 million for drugs, medicines and medical suppliers, and P1.74 million for commercial rice and sando bag.
“While there was existing pressure to the LGU to respond timely to the crisis, LGU officials should faithfully adhere to prescribed laws, rules and regulations,” the audit team said. “The inability of the Municipality to submit the required documents for the transactions cast doubt on the propriety on the propriety of the disbursements.”
While the required documents were submitted to the Office of the Auditor later, the COA reminded LGU officials to award contracts to suppliers that have legal, technical and financial capability to undertake the procurement.
LGU officials reasoned out that the disbursements were processed in the belief that these were prepared in accordance with the GPPB Circular concerning procurement regulations under the Bayanihan to Heal As One Act.
They admitted that the inability to ensure completeness of required documents was due to laxity or oversight and was not designed to circumvent government regulations on procurement.
On the other hand, the audit team noted that the required timelines for the procurement of goods and services and infrastructure projects were not followed by the Bids and Awards Committee (BAC).
It found that the practice of the BAC was to conduct all the procurement stages/activities simultaneously in one setting.
“The procurement procedures adopted by the BAC was in contrast to the required timelines allowed in the procurement of goods and services including infrastructure projects as provided under the IRR,” the COA stressed.
Had the BAC followed the timelines on procurement, schedule of activities could have been conducted separately specially the opening of bids and bid evaluation, it added.
“The two procurement activities should be given due importance because these were the phases where public officials directly or indirectly involved in the procurement process would be held accountable for untoward actions during the procurement process,” the auditors said.
“The manner of conducting the procurement process simultaneously in one setting defeated the governing principles on transparency and competitiveness and might result in irregularities,” they emphasized.
It attributed the deficiencies to the absence of a consolidated Annual Procurement Plan (APP), as the submission of Project Procurement Management Plans (PPMPs) and APP of each implementing unit or office was made on a piece-meal basis.
The COA likewise noted that the BAC Secretariat prepared minutes of the pre-procurement, pre-bid conferences and bidding on a consolidated form contrary to the requirements of the Revised IRR of RA 9184.