THE Commission on Audit (COA) has ordered the lifting of Notices of Disallowance issued against the procurement of rice in 2019 and 2020 by 31 barangays of Oroquieta City from a supplier whose owner has a relative in the city government accounting office.
The 22-page decision released last week effectively clears 31 barangay chairpersons and 31 barangay treasurers of liability relative to the questioned transactions.
Records showed the purchases totaling P3.93 million in 2019 and P6.84 million in 2020 were made from one grain dealer, BBlaine Tata Store, whose owner was found to be the son of a senior bookkeeper of the Oroquieta City accounting office.
In issuing the disallowance, auditors noted that the accounting office is responsible for the submission of barangay reports and the granting of financial assistance to barangays.
Other than the 62 barangay officials, also held liable were city accountant Kane Alfonso Iyog, assistant city accountant Jehmar Quicoy, and the rice supplier and his mother. All were cleared of liability after the disallowance was lifted.
The COA en banc sustained the argument of barangay officials that their actions enjoy presumption of regularity as the grains were emergency purchases at the start of the COVID-19 pandemic.
It held that there was no conflict of interest to speak of since none of the petitioners had any interest in BBlaine Store.
Although the family relationship between the supplier and the city employee was admitted, the commission noted that there was nothing to show that the latter had any financial interest in the transaction.
It pointed out that BBlaine cannot be automatically disqualified from going for city contracts just because his mother works in the accounting office.
“The barangays contracted BBlaine for the purchase of rice because it submitted the lowest price quotations from among the various suppliers. There is no proof that the PBs and/or BTs colluded to award the purchases to BBlaine,” the COA said.
