THE Commission on Audit has referred records of disallowed transactions of the Butuan City government totaling P253.85 million for alleged bidding irregularities in violation of the Government Procurement Reform Act (RA 9184).
In a 25-page decision, the COA en banc affirmed three Notices of Disallowance (NDs) issued in 2011 for the sum of P159.82 million and three supplemental NDs issued in 2014 for the amount of P94.03 million about payments made to contractor DASTA Builders for various public works projects.
However, the commission reduced the disallowed P159.82 million to P157.34 million for the construction of the Sangguniang Panlungsod Session Hall and Main Building, the construction of the Butuan South Market, and the development of Millenium Goal Historical Park.
Auditors issued the disallowance on the ground of non-compliance with the requirement to post the Invitation to Apply for Eligibility and to Bid (IAEB) at the Philippine Government Electronic Procurement System (PhilGEPS) or in conspicuous public places in the city.
They likewise questioned why the IAEBs for the projects were published in a weekly newspaper in Angeles Pampanga when the projects were in Butuan City in Mindanao’s Caraga region.
Moreover, the audit team noted that DASTA Builders’ business address is in Balanga City, Bataan which is far from where the project was located.
It added that the contractor did not submit a duly accomplished and signed Form of Bid.
“The award of three projects, in the total amount of P159,821,868.55, to DASTA Builders was irregular. Dasta should have been disqualified for failing to submit its form of Bid,” the COA said.
It also upheld the finding of overpayment to the contractor amounting to P39.44 million and unrecouped mobilization fees totaling P54.59 million.
However, the COA cleared DASTA Builders of any fault in the non-publication of the project on PhilGEPS.
“Dasta Builders had no control over the [advertisement] it being a private entity whose participation in the bidding was merely to submit its bids and the three infrastructure projects on the city,” the commission pointed out.
City Treasurer’s Office representative Enciro Ato was held liable for P94.03 million; city accountant Antonietta Abella remains liable for P157.34 million; Senior materials engineer Edmund Escariñas was liable for overpayments to the contractor in the amount of P39.44 million; and Engineers Rogelio Cahoy and Bids and Awards Committee members Antenedo Milloren Rogelio Batocael for the P157.34 million.
DASTA was held liable for P94.69 million representing the overpayment but was excluded from the P157.34 million liability.
