FORMER Ifugao governor Teodoro B. Baguilat Jr. and other former provincial officials are facing an investigation by the Office of the Ombudsman over the questioned procurement of a P1.5 million service vehicle in 2008 that was disallowed by the Commission on Audit.
A 2022 decision by the COA Commission Proper that was released last March 15 denied Baguilat’s petition for review seeking reversal of the 2015 ruling of the COA-Cordillera Administrative Region (CAR) that affirmed the 2009 notice of disallowance (ND) and even increased the amount from P499,016.70 to P1.5 million.
A team of auditors that reviewed transaction records said the purchase of the Isuzu Alterra for P1.5 million did not undergo the required public bidding. Likewise, the vehicle was found to have been previously owned rather than brand-new as stipulated under the contract.
Also held liable were provincial accountant Francis Biwit, governor’s representative Shadrach Buenaventura, General Services Office representative Edward Kimmayong, Bids and Awards Committee (BAC) members Janet Sambrano, Carlos Catama, and Romeo Habbiling, and supplier B.M. Domingo Motor Sales Inc.
In his appeal, Baguilat said he merely acted in good faith, having relied on BAC Resolution No. 194 which recommended the acquisition of a service vehicle through direct contracting.
He said Purchase Request No. 1003 did not specify a brand and model of the vehicle required but only the Isuzu Alterra met all the specifications.
The former governor also contested the audit finding that the vehicle was second-hand, saying the registration under the name of BM Domingo Motors was to enable it to put up the vehicle as a display unit in its showroom.
Baguilat noted that BM Domingo Motors is Isuzu’s exclusive authorized dealer in the provinces of Isabela, Cagayan, Quirino and the whole Cordillera Administrative Region (CAR).
Since the vehicle was a display unit, he said the dealer sold it for only P1.5 million against the P1.85 million tag price for a brand-new unit.
The COA CP, however, sustained the audit team’s stand that there were violations of RA 9184 or the Government Procurement Reform Act when the provincial officials dispensed with public bidding and resorted to direct contracting without putting forward any explanation.
“There was also no justification provided to indicate that the vehicle may only be procured through direct contracting and that there are no suitable substitutes in the market for the same that may be obtained at more advantageous terms,” the commission pointed out.
Likewise, the BAC resolution specifically mentioned the brand name Isuzu and BM Domingo Motors as the exclusive distributor.
In addition, the COA said RA 8749 or the Clean Air Act defined a new vehicle as one that has “never been sold or registered with the DOTC” (now Department of Transportation).
Since the license plate of the vehicle was under the name of the dealer since July 6, 2005 while the purchase took place on May 15, 2008, the COA said Baguilat cannot insist that the unit was brand-new.
“The motor vehicle was initially registered in the name of dealer Domingo, who is considered the first owner. The subsequent sale makes the province the second owner thereof. It is very hard to believe that the vehicle was merely displayed in the showroom for almost three years over the later models,” the COA added.
In light of violations of procurement rules, the COA said the case will be referred to the Office of the Ombudsman for investigation and filing of charges if warranted.
