THE provincial government of Zambales bought P35.42 million of canned goods from a company registered with the Bureau of Internal Revenue (BIR) as a supplier of “construction materials/hardware,” government auditors revealed in a report released last May 21.
The said transaction is one of four procurement deals with a combined value of P61.13 million undertaken in 2020 that was tagged by the Commission on Audit (COA) as “questionable.”
Auditors identified the supplier as Ronie’s Trading located in San Felipe, Zambales. It is listed with the BIR as a wholesaler of machinery/equipment and retailer of books and office and school supplies. Its business permit merely stated it is engaged in “trading.”
In the second transaction, a company named LMVJ Trading with an address in Pandi, Bulacan was tapped to deliver P12.033 million worth of “rice, janitorial supplies, and equipment.” But based on records from the BIR, the firm is a retailer of books, school supplies, newspapers, magazines; machines, equipment, computers; and also operating as a “specialized store.”
Under the Philippine Standard Industrial Classification, the same firm was also described as a seller of “textiles, clothing, footwear, and leather goods.”
On the other hand, a P10.67 million contract for the purchase of rice went to J. Delos Santos Poultry and Agricultural Supply with a business address in Sta. Cruz, Zambales.
From its BIR Form 2303 attached to the disbursement voucher, the supplier was listed as a retailer of agricultural farm supplies and equipment. However, its Mayor’s/business permit said it was engaged in agricultural supply and rice retailing.
Finally, a fourth contract went to GMJ Trading of Botolan, Zambales for the delivery of P3,000 worth of “canned goods.”
While its business permit declared that it sells school and office supplies, BIR records showed it was supposed to be a seller of “books, school supplies;” “machines, equipment, computers;” as well as “food beverages, and tobacco.”
“Based on the foregoing, the permit as compared with the BIR registrations … are conflicting in nature,” the audit team pointed out.
Invoking the urgency of each transaction due to the COVID-19 pandemic, the provincial accountant said it found “legitimate and capable suppliers” even as many establishments ceased operations.
The same official gave assurances that the provincial government complied with the Government Procurement Policy Board Circular No. 01-2020 and the Joint Memorandum Circular No. 2 issued March 30, 2020 by the Department of Interior and Local Government (DILG) and the Department of Budget and Management (DBM).
