A team from the Commission on Audit (COA) discovered lapses and deficiencies in the procurement process of the Bato local government unit in 2024 as well as in the implementation of a street lighting project.
The report on the year’s transactions of the LGU stated that lapses were found in the post-qualification process for the procurement of two (2) motorboats and touring equipment with a contract cost of ₱808,570.00, funded by the Department of Labor and Employment (DOLE)
This resulted in the non-fulfillment of the terms and requirements of the contract, affecting the overall quality and objectives of the project, it stated.
The acquisition of motorboats and touring equipment was part of the Memorandum of Agreement entered into by the LGU on Mar. 2, 2023 with the Department of Labor and Employment (DOLE) Region
V for the implementation of Kabuhayan Program for proponent beneficiaries.
A review disclosed that the LGU received the funds from DOLE-ROV on March 6, 2023 and was supposed to start the procurement process within three (3) months after the receipt.
However, verification showed that the Bids and Awards Committee (BAC) did not commence the procurement process until Oct. 23, nearly eight (8) months after the receipt of the funds, with the LGU entered into the contract with the winning supplier on Nov. 14.
Among the lapses observed were: nonfulfillment of portion of the contract due to the inability of the winning supplier to deliver a two-way handheld radio costing ₱18,000.00 as it was not an authorized NTC dealer; no liquidated damages were imposed on the supplier; and, changes/amendments to the original contract as requested by the winning supplier, particularly the change in the required engine power (16HP) of the motorboats to a much lower one (12HP).
In the implementation of a project involving the installation of lighting facilities in various barangays with a contract cost of ₱2.99 million funded from the 20% Development Fund, the audit team found deficiencies including an unauthorized request for suspension of work for 45 calendar days due to delays in the delivery of steel poles and other materials.
The team said the contractor was unable to provide sufficient documentations or detailed evidence to justify the reason for the request while the LGU failed to submit an evaluation/assessment report establishing the need for time extension including the computation showing sufficient detail how the 45- day extension was determined.
Most of the workforce did not use construction safety and health items, the COA stated, although the
contract cost includes component for safety provisions.
On the other hand, there were delays in the implementation and completion of three (3)
projects under the 20% Development Fund for CY 2024: Improvement/Construction of Manpower
Development Center, Development of Water System and Expansion/Completion of Mangrove Eco Tourism Site which were still on going as of year-end 2024.
It was also observed that the LGU shouldered the payment of capital gains and estate taxes totaling ₱104,778.35 in relation to the acquisition of lot for the Establishment of Seed Farm and Municipal Nursery despite non-stipulation of such provision in the contract of sale.
In his reply, the Municipal Planning and Development Coordinator explained that the delay was primarily caused by inclement weather brought about by Typhoon “Pepito” and the shearline that occurred during the implementation of the said projects.
Information from the Municipal Assessor showed that the landowner initially agreed to shoulder the taxes out of the selling price. However, due to the absence of other available cheaper land and the presence of multiple interested buyers, it was decided not to include such provision to ensure the successful acquisition of the lot.
Other significant findings during the audit were: unliquidated cash advances for travel totaling ₱228,508.68 made by several local officials despite completion of travel, primarily due to the inability of the Sangguniang Bayan members to present government-issued official receipts for the seminars or conventions they had attended; deficiencies in the grant and liquidation of cash advances for Confidential Funds for CY 2024 totaling ₱195,750.00; failure to refund Guaranty Deposits payables totaling ₱405,777.45 representing one per cent retention money to suppliers despite the lapse of warranty period; and, incurrence of unnecessary expenditures totaling ₱77,400.00 for registration fees paid to various leagues and associations for their
regular meetings.
The municipality of Bato, however, was commended by the COA for fully implementing 43 Disaster Preparedness, Mitigation and Rehabilitation programs for CY 2024, attaining 93.48 per cent accomplishment and achieving the purpose of creating a disaster-prepared and resilient communities.