Over P2 million worth of supplies procured by the Virac municipal government in 2021 for the COVID-19 pandemic either did not undergo public bidding or were not posted in the PhilGEPS website, the Commission on Audit (COA) said in its audit report.
The audit team found that the acquisition of food supplies for COVID-19 patients totaling P599,980.00 charged to the Local Disaster Risk Reduction and Management Fund (LDRRMF) was undertaken without benefit of public bidding or any other mode of procurement.
It also stated that the purchase did not under evaluation and concurrence of all Bides and Awards Committee (BAC) members as mandated by Sections 10 & 12 of Republic Act 9184, disregarding the rules and regulations of the procurement law.
Verification of various disbursements relative to the expenses incurred by the municipality in the operation of its isolation and quarantine facility disclosed that food supplies intended for the preparation of meals for COVID-19 patients and front liners were procured without the benefit of public bidding or any other mode of procurement.
The procurement did not have the evaluation and concurrence of the BAC, which did not approve a resolution relative to the mode of procurement to be adopted.
A total of P600,000.00 in cash advances was drawn by the municipal treasurer from May to December 2021, with the procurements of food supplies carried out through simple shopping without any canvass or procedures followed, the COA stated.
“Only a report of disbursements, several sales invoices, attendance sheets, schedule of meals to be served, and acknowledgement receipts that patients and frontliners were provided meals during their quarantine periods were attached as supporting documents in the liquidation reports,” the team noted, with the cash advances utilized by the agency for several days or weeks before being liquidated.
It noted that under RA 9184, procuring entities may directly negotiate or procure from a legally, technically and financially capable supplier in case of emergency so it can respond to the situation immediately. However, the municipality was still unable to comply with the prescribed rules and regulations in the procurement of said supplies.
In its comment, the management justified that LGU Virac acquired food supplies for COVID-19 patients based on the adopted and approved mechanics by the municipal mayor in accordance with RA 11494 or the “Bayanihan to Recover as One Act.”
The municipal treasurer claimed that her participation was to draw a cash advance through the authority given by the local chief executive during the activation of the Emergency Operations Center for COVID-19.
The COA, however, stood with its observation, adding that various issuances had been issued to relax certain processes and documentary requirements for the emergency procurement modality to give more flexibility to procuring entities to address the emergency situation.
In another finding, the audit team discovered that the Notice of Award, Contract and Purchase Order covering P2.4 million worth of transactions undertaken through negotiated method in emergency cases were not posted at the PhilGEPS website.
This was contrary to Section 54.3 of RA 9184, thus defeating the principle of transparency in government procurement and depriving the public of readily available information on the LGU’s procurement transactions, the report said.
The transactions covered the procurement of medical, janitorial and other supplies and materials for the use of the Municipal Health Office for COVID-19 vaccination worth P1.4 million; supplies, materials and equipment for furnishing of Multi-Purpose cum Virac Ligtas COVID Center worth P798,842.00; and COVID-19 Rapid Test Kits valued at P192,500.00.
While it concurred with the COA finding, the LGU contended that the 2016 Revised IRR of RA 9184 did not specifically mention that the procurement process for emergency cases needs PhilGEPS posting.
The COA countered that for posting in the PhilGEPS website, the only exception cited was if the contract involved and affects national security and for contracts with ABC of P50,000 and below.
“Hence, all alternative methods of procurement require the posting of the NOA, Contract/PO including NTP, if necessary, consistent with Section 54.3 of the 2016 Revised IRR of RA 9184,” it stressed.
In another significant finding, the government watchdog found out that nearly one million pesos in cash donations intended for typhoon Rolly-related programs remained unutilized as of Dec. 31, 2021 due to delayed planning.
The report bared that in 2020, the Virac LGU had a balance of donations totaling P196,134.00 and received P18,181.00 from the League of Municipalities of the Philippines – Catanduanes Chapter while in 2021 it received P287,500.00 from the Development Bank of the Philippines, P250,000.00 from the City Government of Cebu, and P200,000.00 from the City Government of Zamboanga.
However, the audit disclosed that the Municipal Disaster Risk Reduction and Management Council (MDRRMC) was unable to approve a supplemental Local DRRM Investment Plan identifying the specific DRRM programs, projects and activities which will be funded by said donations.
The delay in the identification of the PPAs chargeable to the cash donations and the approval of the Investment Plan resulted in the delayed utilization of said funds, the COA stated.
This condition, together with the delayed transfer of the unexpended balances of the completed PPAs carried as continuing appropriations, resulted in the non-optimization of available resources to support the DRRM activities of the municipality, it added.