TAGUM City’s purchase of P8.33 million worth of relief goods for evacuees from three barangays affected by heavy flooding in January 2019 is getting heat from government auditors for alleged failure to observe guidelines and lack of supporting documents.
In its 2019 report on the city government, the Commission on Audit said the transaction is of “doubtful validity” because the procurement was made prior to the declaration by the Sangguniang Panlungsod of a state of calamity through SP Resolution No. 1409 s. 2019.
The COA noted that under RA 10121 or the Philippine Disaster Risk Reduction and Management (DRRM) Act of 2010 a local government unit can tap its 30 percent Quick Response Fund only after the Sanggunian has declared the existence of a state of calamity.
In Tagum City’s case, the purchase was made on January 14, 2019 for P8.33 million worth of relief goods and distribution was completed two days later. However, the required Sangguniang Panlungsod resolution was only passed on January 28, 2019 or two weeks after the transaction.
“Verification disclosed that the omission occurred due to the unilateral action of the CDRRMO (City Disaster Risk Reduction and Management Office) in procuring the relief goods without first securing the resolution of the Sangguniang Panlungsod,” the COA said.
The city government explained that the evacuation was a preventive action due to the rising levels of Pagsabangan River which threatened low-lying barangays with 2,095 families.
But after the rain went on for an additional three days, the number of evacuees swelled to 10,190 households from seven barangays.
The city government explained that the Bids and Awards Committee maintains a list of suppliers’ documentary requirements and that based on its records, Pioneer Buenas Commodities Corp has submitted its updated business permits and tax papers.
The audit team said it will verify the city’s claim of compliance as it insisted that the rules under the procurement law are mandatory.
The audit team also noted that the transaction was undertaken through a “negotiated procurement-emergency case modality” which means there was no public bidding.
The alternative system RA 9184 or the Government Procurement Reform Law requires that the following documents be submitted: business permit, income/business tax return, and omnibus sworn statement.
“Out of the afore-cited requirements, none were submitted supporting the procurement made. The Bids and Awards Committee and the City Accounting Office failed to take notice of these requirements,” auditors said.
Supporting documents, including the purchase order, was submitted by supplier Pioneer Buenas Commodities Corp. 53 days after the goods were delivered.
“We observe that the compliance of the required procurement process and submission of related documents was just an afterthought to regularize the transaction made. Management is reminded that said act is an obvious disregard of the procurement law,” the COA warned.
Even while acknowledging that quick decision-making is important during times of calamities, the audit team pointed out that this does not allow disregard of the laws and regulations in the country.
