THE Commission on Audit Commission Proper has granted the petition of Fast Autoworld Philippines Corporation (FAPC) for payment on 11 utility vehicles delivered to the city government of Bacolod in 2016 after the latter refused to process the release of payment.
In a decision released this week, the COA said the supplier contractor is entitled to payment because the contract was valid, having undergone competitive public bidding.
The COA also noted that FAPC performed its obligations in full by delivering the 11 utility vehicles in accordance with specifications.
Based on the ruling, Bacolod City mayor Evelio Leonardia refused to sign the disbursement vouchers after the city legal officer raised questions on the bidding process and the timeline of the procurement that took place just days before the imposition of the election ban in 2016.
It also noted that the vehicles ended up with the Bacolod City-PNP even if the stated intention for the procurement was for the city’s Disaster Risk Reduction and Management Office.
The COA said the objections did not affect the validity of the supplier’s claim for compensation.
“The procurement of the utility vehicles was included in the city’s annual procurement plan for 2016 and was supported with complete appropriation. Moreover, it was done through public bidding,” the COA pointed out.
That the vehicles eventually ended up with the Bacolod City-PNP rather than the DRRMO has nothing to do with FAPC which already complied with its obligation by making a full delivery.
“The alleged use by the PNP-Bacolod of the utility vehicles instead of the DRRMO is not the fault of FAPC. Its obligation is to deliver the vehicles in good condition. Thus, it is entitled to the value of the vehicles pursuant to its contract in the total amount of P9,346,500,” the COA declared.