THE Commission on Audit has referred records of a P58.07 million information and communications technology (ICT) procurement deal of the National Bureau of Investigation (NBI) to the Office of the Ombudsman for investigation after finding violations of procurement laws and possible collusion between government officials and the supplier-contractor.
In a 12-page Decision, the COA Commission Proper denied the petition filed by Value Systems Philippines Inc. (VSPI) against the NBI claiming non-payment for delivery of equipment and services totaling P34.83 million.
The claimant said it provided software enhancement for the NBI Clearance Processing and Issuance System (CPIS) from January 1, 2014 to November 30, 2014,
Despite the absence of a contract and lack of public bidding, the firm said it is entitled to compensation under the principle of quantum meruit or reasonable payment commensurate to the services rendered or work done.
The Commission disagreed, citing a lack of basis for the claim.
“The money claim of VSPI may not be given due course for lack of merit. This Commission believes that the principle of quantum meruit is not applicable in this case because VSPI failed to prove that it is entitled to payment of its claim due to lack of supporting documents presented that would sufficiently establish the actual services rendered relevant to the NBI CPIS and warrant the payment thereof,” the COA CP declared.
It held that for a claim against government resources to be valid, it must be supported by full documentation.
“There was no document presented by VSPI or any proof to show the actual services it rendered pertinent to the NBI. This includes, …the contract; …proof as to the actual number of printed NBI clearances per month; the development of the NBI CPIS system by VSPI; delivery receipts; purchase orders; and information/documents pertaining to the software component like software licenses,” the COA noted.
However, the COA CP instructed the Prosecution and Litigation Office, Legal Services Sector to refer all the audit records relative to the transaction, noting that “the entry of the VSPI to the NBI appears to be a pre-arranged set-up on the hiring of services.”
The audit team said it found violations of RA 9184 or the Government Procurement Reform Act and hints of “possible collusion” among officials of the Department of Justice, the NBI, and VSPI personnel.
It likewise pointed out that the active contract of the previous service provider for the processing of NBI Clearances, Realtime Data Management Services Inc (RDSMI), was until December 31, 2013, but on December 4, 2013, the VSPI had already submitted a Vendors/Suppliers/Contractors Registration Information Sheet and Proposal to the NBI signifying its intention to provide the equipment.
“Then DOJ Secretary de Lima informed OIC NBI Director De Lemos of the approval of the proposed lease-to-own contract on December 20, 2013, three days before the DOJ informed the RDMSI President of the termination of its contract with the NBI under the NBI CPIS,” the COA said.
It added that De Lima “unilaterally terminated the NBI’s contract with RDMSI on December 23, 2013” citing the contractor’s failure to fully comply with all of its deliverables. This was eight days before the expiration of its existing contract.
“VSPI allegedly delivered ICT equipment to NBI on December 26, 2013, even in the absence of any written notice to make such deliveries. The public bidding was only initiated in April 2014, even if the NBI could have done it before the supposed expiration of its contract with RDMSI,” the COA added.
Moreover, it sought an inquiry into why the original proposed contract cost of P38 million ballooned to P58.068 million for the same one-year lease of IT equipment and software, peripherals and deliverables.
The commission also questioned the late inspection and acceptance of the ICT equipment and components as shown by the inspection and acceptance reports (IARs) dated April and May 2016.
The decision was issued on May 30, 2022 but was released only last week.
It was signed by former COA chairperson Rizalina Noval Justol and commissioners Roland Café Pondoc and Lario Gonzales Lipana.
