Makati City administrator: COA presentation at Senate hearing unfair, violated COA rules

MANILA, Philippines - The Commission on Audit's (COA) presentation of the preliminary audit at the continuation of the Senate hearing on the alleged overpricing in the construction of the Makati City Hall Building 2 was in violation of COA rules and was ‘patently unfair’ to the city government, Makati City Administrator Eleno Mendoza said on Thursday.

“As a rule, COA audits are confidential in nature because the office being audited has the right to reply and explain the findings. Preliminary findings are not conclusive findings,” Mendoza said.

At the Senate hearing, a COA official was compelled by members of the sub-committee chaired by Sen. Aquilino Pimentel III to open the sealed report and read its contents out loud.

Mendoza said that under COA rules, the agency being audited is asked to submit its replies and comments on preliminary audit findings to COA, which then calls the agency to an exit conference where the findings and corresponding comments are discussed.

“Only after such a conference does COA render a final report,” he said.

“The COA official emphasized these during the hearing but was forced to read his report against his objection. This is patently unfair to the city government, which has yet to see and comment on the said findings,” Mendoza said.

Mendoza also noted that the preliminary report as stated does not mention overpricing.

“It only mentions alleged lapses in the procurement process,” he said.

Last Wednesday, lawyers of Makati Mayor Jejomar Erwin Binay filed a motion requesting the Senate Blue Ribbon Committee to evaluate and rule as a whole on the jurisdictional challenge they filed on behalf of their clients last September 25.

The lawyers assailed the “arbitrary, capricious and whimsical act” of the sub-committee in proceeding with the hearings without proper resolution of the said challenge.

Under Section 3 of Resolution 5 of the Senate Rules of Procedure on Inquiries in Aid of Legislation, in the event that a jurisdictional challenge is filed, the same must be resolved first before proceeding with any inquiry.

Pending a ruling from the whole committee, the lawyers asked for a suspension of the inquiry being conducted by the sub-committee into Makati City Hall Building II.

Meanwhile, the Senate sub-committee persisted in conducting the hearings as scheduled.