THE Philippine Coast Guard’s (PCG) acquisition of a bulletproof sports utility vehicle worth P7.8 million last year did not have the required prior approval of the Department of Budget and Management (DBM) and was in violation of a ban imposed by Malacañang on the purchase and use by public officials of luxury vehicles.
The Commission on Audit pointed out that under Malacañang Administrative Order No. 14 issued in December 2018 by former President Duterte, “all government agencies are prohibited from acquiring and/or using luxury vehicles for their operations.”
For SUVs, Section 3 of AO No. 14 defined a luxury vehicle as those with engine displacements exceeding 2700 cc for gasoline-fed or 2800 cc for diesel-fed and exceeding four cylinders.
The COA said that the PCG, using its 2021-2022 fuel rebates from Petron Corp., acquired a Toyota Land Cruiser Prado worth P4,999,000 (net of P201,000 discount) with an additional billing of P2.8 million for bulletproofing installed at the agency’s request.
Auditors said the vehicle has a 3956 cc six-cylinder engine and is considered a luxury vehicle in reference to AO No. 14.
The Coast Guard Staff for Logistics (CG-4) defended the acquisition, saying the armored Toyota Land Cruiser Prado is “necessary for the PCG to ensure safe and secured transportation of the Commandant” so he can perform his functions.
The audit team however countered that the PCG headquarters and its various district offices own 459 service vehicles as shown on the Motor Vehicles Schedule obtained from the Accounting Service Office (ASO), hence a new bullet-proof SUV is not justified.
The motor vehicle inventory of the PCG showed it also acquired 31 brand new (2023 model) Isuzu MUX LS-A 4×2 each worth P1.9 million or a total of P58.9 million also charged against the “fuel, oil, and lubricants (FOL)” rebates from Petron.
“Considering the total number of motor vehicles owned by the PCG, the necessity of acquiring new vehicles to utilize the rebates from Petron Corporation cannot be adequately established,” auditors said.
But the CG-4 insisted that it still requires more land vehicles and aluminum/rubber boats to support its operations particularly in light of the increase in manpower in its offices all over the country in 2020 and 2021.
The PCG leadership however agreed with the COA’s recommendation to secure a post facto approval from the secretary of the DBM to comply with AO No. 14.
