THE Commission on Audit granted a supplier’s P14.48 million claim against the Armed Forces of the Philippines Health Service Command (AFPHSC) for unpaid deliveries 10 years ago.
Claimant Mailig Drug and General Merchandise filed the petition with the COA on March 5, 2020 after failing to collect payment from the AFP for various medicines and hospital supplies delivered from February to October 2014.
It said the end-users were confined patients at the Victoriano Luna General Hospital, AFP Medical Center. The hospital in turn issued Certificates of Delivery and Acceptance in favor of the supplier.
In support of her petition, businesswoman Angelina Mailig submitted copies of the sales invoice, official receipts, certificates of delivery, certificates of acceptance, medicine requests/prescriptions, and certificate of non-payment.
In its answer, the AFPHSC Command Inspector General validated the claim and attested that the emergency purchase orders were followed, the signatures on the documents were authentic, the patients were admitted and treated, and the medicine and hospital items were delivered.
The audit team leader, however, said the transaction was undertaken through negotiated procurement without justification as to the necessity and that Mercury Drug official receipts were attached to the claim instead of Mailig sales invoices.
Invoking the interest of substantial justice and equity, the COA en banc said the petition is meritorious, even if a written contract is lacking or in the absence of a covering appropriation.
“It is undisputed that the medicines and the medical supplies were actually delivered and utilized by the patients. These items were needed by the patients and they were unavailable at the AFP Pharmacy Service at the time of delivery,” the commission said.
It noted that being a limitary hospital, the medicines were intended for emergency cases which is an exception under the Government Procurement Reform Act or RA 9184.
“Since the lives of the patients are at stake, the essence of Section 53.2 of the Revised Implementing Rules and Regulations of RA No. 9184 on purchase was complied with,” the COA said.
