THE Commission on Audit (COA) has called out 10 regional offices of the Commission on Higher Education (CHED) over purchases and disbursements totaling P55.48 million that did not comply with procurement laws and regulations.
In the agency’s 2023 audit report released last December 17, state auditors tagged the CHED Regional Offices (CHEDROs) of the Cordillera Autonomous Region (CAR), Region 1 (Ilocos Region), Region 2 (Cagayan Valley), Region 3 (Central Luzon), Region 4A (Calabarzon), Region 4B (Mimaropa), Region 5 (Bicol Region), Region 6 (Western Visayas), Region 8 (Eastern Visayas) and Region 13 (Caraga) on transactions that violated provisions of the Government Procurement Reform Act (RA 9184) and its Revised Implementing Rules and Regulations (RIRR).
The biggest fund releases questioned were those used to pay for the cost of meals and accommodations in private resorts and hotels which were rented as venues for various activities by the CHEDROs.
Under the said expense item, auditors listed P13.72 million paid by CHEDRO – Central Luzon, P10.65 million by CHEDRO – Eastern Visayas, and P6.94 million by CHEDRO – Ilocos Region.
For CHEDRO – Central Luzon, the audit team said its examination of the contracts “revealed a lack of justifications from the end-user regarding the choice of using privately owned real estate of venues.”
“The Regional Office conducted a total of 96 events with expenditures amounting to P13,719,550.87 for the lease of venues, dispersed across 33 different resorts and hotels by private providers,” auditors noted.
CHEDRO – Eastern Visayas, on the other hand, was called out for paying for meals and rooms through “small value procurement” instead of lease of real property totaling P10,646,100.
Likewise, auditors found “inconsistencies in the price rate for the procurement of venue, food and accommodations” noting the absence of technical specifications.
In the case of CHEDRO – Ilocos Region, the audit team observed “procedural lapses,” noting that all the venues selected in 2023 were privately owned event locations. Majority of the activities were also unplanned hence not supported by appropriations.
“A total of 33 activities out of 58 were not included in the Annual Procurement Plan. Payment of a total of P6,935,915.09 even without complete documentation, and failure to prepare the Technical Specifications… adversely affected the integrity and propriety of the transactions,” the COA noted.
Also flagged were P11.39 million worth of purchases by CHEDRO – Ilocos Region with improperly accomplished procurement forms, as well as P2.29 million transactions supported only by photocopies of requests for quotation with insufficient support documents.
In CHEDRO – Bicol Region, the audit team noted deficiencies in P2.82 million worth of catering and hotel accommodations also done without holding a canvas of at least three suppliers and in the absence of posting on the Philippine Government Electronic Procurement System (PhilGEPS).
In its reaction to the findings, the CHED management agreed to notify the CHEDROs of their lapses and to remind them about the need to comply with the requirements of RA 9184.
It added that it will remind the CHEDROs to avail of government-owned venues for events whenever a cost-benefit analysis can demonstrate it is more advantageous to do so.
