GOVERNMENT auditors have sought an explanation from the Cavite City government regarding the high cost of relief supplies it purchased last year as part of its COVID-19 response.
Review of the city’s transactions during the public health crisis showed that procurement of well-milled rice, sardines, and corned beef were overpriced by around P5.723 million.
Based on records, there was only one supplier — ARM Trading.
Citing Joint Memorandum Circular No. 2020-01 issued on March 18, 2020 by the Department of Trade and Industry, the Department of Agriculture, and the Department of Health entitled “Price Freeze under a State of Calamity throughout the Philippines Due to Corona Virus Disease 2019,” the audit team noted that the procurement costs per item were substantially higher than the suggested retail price (SRP).
“The prices of various goods procured by the City were significantly higher than the suggested retail prices released by different authorized government agencies, contrary to Republic Act No. 7581 (or The Price Act) … thereby showing possible overpricing,” the Commission on Audit said.
Sinandomeng well-milled rice with the SRP of 40.38 per kilo were paid at P50 per kilo, or a price difference of P9.62 per kilo.
Since there were five purchases of rice from ARM Trading from April 16 to June 19, 2020 totaling 490,920 kilos, auditors estimated the price variance from the SRP at P4.98 million.
On the other hand, cans of Young’s Town Bonus Sardines (155 grams) were paid at P20 each against the SRP of only P13.25, or a price difference of 6.75 per can or a total estimated overprice of P395,550.
Meanwhile, Young’s Town Premium Corned Beef (150 grams) were bought at P35 each can compared to the SRP of only P29 for a P6.00 difference. With 58,600 cans delivered, the total price variance was calculated at P351,600.
“We recommended that the City Mayor direct the BAC (Bids and Awards Committee) to explain/justify the material discrepancies between the prices of the basic commodities procured by the city in response to the COVID-19 and their suggested retail price authorized by government agencies,” the COA said.
