The Commission on Audit has found deficiencies in the procurement of goods and services by the municipal government of San Miguel in 2023.
In its annual audit report for LGU transactions for the year, the audit team noted various deficiencies in the acquisition of goods and services with an aggregate total of P189,040.00, casting doubt on the propriety and legality of the procurement transactions.
These included the purchase of P40,000 worth of heavy equipment spare parts which were made through shopping without any canvass and supported by an undated official receipt issued by a supplier in Metro Manila; P98,000 paid for referee services in the 71st Founding Anniversary basketball tournament, also undertaken through shopping; sound system services worth P21,840.00 in the same anniversary, with the supplier not providing proof of PhilGEPS registration; and purchase of P29,200 cellphone with model and unit provided in the request for quotation.
The agency also resorted to shopping as a mode of procurement in the acquisition of P2 million worth of goods and services which did not meet the criteria under the IRR of RA 9184.
There was also splitting of contract in the procurement of office supplies totaling P261,606.00, the audit team stated.
The Bids and Awards Committee was unable to invite observers in all stages of negotiation for the procurement of auto supplies and service vehicle worth a total of P2.36 million undertaken through negotiated procurement, the report indicated.
Likewise, it said that the validity of performance security of nine infrastructure projects did not extend until the issuance of Certificate of Final Acceptance of the projects, thus, faithful assumption of the winning bidders of their responsibilities under the contracts was not fully guaranteed.
On the other hand, the audit showed, the LGU incurred unnecessary expenses totaling P309,445.00 for catering services and entertainment expenses.
The amount of P244,510.00 was spent for meals and snacks served during activities of national government agencies, provincial organizations, a private climbers’ group, meetings of punong barangays and outreach programs, validations and inspections conducted by visitors from other agencies, meetings and sessions of LGU officials and employees, and officials of basketball and volleyball tournaments whose fees were already covered by a Contract of Service.
A total of P64,935 was also spent for the live band, sound system, fees for disc jockey and sound system operator during the foundation anniversary balls, and for sound system and lights during the fellowship night of the Civil Service anniversary celebration.
In another finding, claims for hotel accommodation during official travels totaling P30,230 were granted in excess of the prescribed rate despite objections of the municipal accountant. These travels involved events such as the Philippine Multisectoral Nutrition Program at Manila Hotel, LMP Island Cluster Conference, Exchange Forum at PICC Manila and consultative meeting of local executives at Clark Pampanga.
The audit team recommended that the chief executive direct the immediate refund of the claims for hotel accommodation in excess of the prescribed rates.
Some activities in the Peace and Order Program (POP) did not directly address criminality, armed conflict and human rights violation, leading to an excess of P50,682.80 in the allowable amount for Confidential Fund (CF), the COA said.
These included the allocations for the conduct of trainings or tricycle drivers, establishment of Early Warning Device, procurement of road safety devices, participation in Business One Stop Shop, fire prevention and fore safety activities, disaster preparedness trainings, feeding program, gift giving and tree planting, perimeter fence, hygiene kits, COVID-19 info drive, and maintenance of Halamanan ni Mang Isko.
The audit team also stated that the allocation of CF was not properly justified as the peace and order situation in the locality was certified by the local police chief as generally peaceful and manageable.
Meanwhile, the programs, projects and activities funded from the 20% Development Funds for 2023 were substantially implemented, posting 81.72% accomplishment, ensuring that the intended beneficiaries benefited from the socio-economic and environmental outcomes due them.
Of the 11 priority projects funded by the 20% DF totaling P22.2 million, all of the PPAs were fully implemented as of Dec. 31, 2023.
However, in terms of function, the team found that only 9 were completed and fully operational: Rehab of farm-to-market road at Paraiso, Concreting of FTMR at District I, Construction of Additional Facility at Rural Health Unit, Construction of Road at San Marcos, Reconstruction of Hanging Bridge at Tobrehon, counterpart funding for KALAHI-CIDSS projects, Rehab of Multi-Purpose Building at Obo, and Construction of Rice Mill at San Marcos.
The farm-to-market road from Siay to Pacogon, whose improvement cost P2.49 million, was not fully usable as additional structures such as RC pipe culverts and slope protection were needed due to the road’s being prone to erosion.
On the other hand, the construction of access road at the Temporary Containment Area at Siay, which cost nearly P2 million, was completed but the TCA itself is not yet constructed as the LGU is still applying for a bank loan for its construction.
The COA commended the management for the substantial implementation of the development projects and recommended that the FTMR at Siay and the TCA be fast tracked.
With regards to the Rehab of Farm to Market Road at Kilikilihan with a total cost of P3.99 million, the team observed uncorrected defects which may result in further damage to the road, cause inconvenience to end-users and entail additional costs to the LGU.
It noted blistering and delamination on the concrete surface, major and minor scaling as well as transverse cracks, defects attributed to poor workmanship, use of poor-quality materials and non-compliance with plans and specifications.
Among the other significant findings in the report were: the absence of Torrens Certificate of Title for 15 parcels of land claimed as owned by the LGU, with a combined value of P5.9 million, exposing the government properties to possible risk of court litigation in the future; cash advances for travel totaling P76,401.67 remained unliquidated as of Dec. 31, 2023, with the liquidation papers submitted only later;