THE Commission on Audit (COA) has notified Tagaytay City mayor Agnes D. Tolentino that she must require the city’s Bids and Awards Committee (BAC) to submit a written justification for awarding COVID-19 procurement contracts based on prices way higher than the suggested retail price (SRP) set by government agencies.
Auditors found that the city approved purchases of instant noodles, rice, canned goods, and whole chicken in seven separate transactions between March 20 and May 8, 2020 all marked higher than the prices set by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA).
Records obtained by the audit team showed Lucky Me instant noodles (beef and chicken flavors) were bought at P15.00 per pack, which was 93 percent over the SRP of only P7.75/pack; rice at P61 to P70 per kilo or 43 to 51 percent over an SRP of P40.38 to P46.23 per kilo.
Whole chicken was paid for at P192 each against an SRP of P170, while Argentina corned beef 150g were delivered at P36 per can, or P4.00 over the SRP of only P32.00/can.
“Review of the procurement made by the city government … revealed that the prices of basic commodities purchased in relation to COVID-19 heath emergency crisis is significantly higher than suggested retail prices. Comparison of the prices made on the goods showed possible overpricing totaling P29,840,794,” the COA said.
Based on the purchase orders (POs), the earliest procurement was dated March 20, 2020 or only four days after Malacañang issued Proclamation No. 929 placing the whole country under a state of calamity and imposing a price control on all basic needs and commodities.
Tagaytay City did not deny the price difference noted in the audit report but insisted that the transactions were “done according to procurement rules and regulations” and factored in not just the price but also the capacity to deliver the volume of supplies required.
It said that at the time of the purchases, food supplies were scarce and big suppliers had no stocks available due to limited production.
