THE Commission (COA) has denied the claim of a vehicle rental company against the Office of the Presidential Adviser on the Peace Process (OPAPP) for supposed unpaid rent on 20 vehicles during the Duterte administration.
The COA en banc held that claimant Areza Motor Sales failed to prove that it is entitled to compensation on the ground that 16 out of the 20 vehicles were not registered in its name but under a lending company, there was no support to its assertion that OPAPP continued using the vehicles after the original lease contract expired in 2018, and the rental deal had no prior authority from the Department of Budget and Management (DBM).
Audit records showed the Bids and Awards Committee (BAC) of the OPAPP invited bidders to submit quotations for the lease of 20 units of motor vehicles with an option to purchase.
On December 23, 2016, the OPAPP signed a lease contract with an option to purchase with a monthly rental fee of P84,906 per unit. The rental firm turned over 20 units of Isuzu vehicles to the government agency.
The contract was renewed for another year on December 22, 2017.
While Areza Motor Sales claimed that the contract was renewed for another year, covering the period from January 2019 to February 2020, OPAPP failed to pay the rental total of P23.77 million.
It also asked for reimbursement of attorney’s fees amounting to P1 million.
“This Commission rules to deny the petition. Ms. Areza failed to present evidence showing that OPAPP continued to use the MVs after the expiration of their contract on December 23, 2018 or from January 2019 to February 2020. In fact, OPAPP denied the renewal of contract and usage of the MVs for that period,” the COA said.
Without proof that OPAPP benefited, there is no basis to grant compensation through the principle of quantum merit.
Likewise, the absence of a prior clearance from the DBM allowing the new rental contract made the transaction irregular.
“In this case, there was a patent violation of rules and regulations, specifically DBM NBC (New Budget Circular) No. 446, series of 1995, which requires prior authority from the DBM for the rental/lease of MVs for a period longer than 15 days,” the commission noted.
Without a valid contract to speak of, the COA said the claim for attorney’s fees must likewise fail.
“Unless a competent court determines the value of said claim, this Commission considers claims for attorney’s fees unliquidated claims that are beyond the jurisdiction of this Commission,” the COA said.
