COA disallows P7M consultancy contract

CEBU, Philippines — The Commission on Audit has disallowed payment of P7 million consultancy services for the construction of Dumanjug Integrated Water Supply and Distribution System.

In a Notice of Disallowance (ND) dated January 22, 2019, COA asked former Dumanjug acting mayor Rainero Asentista and concerned town officials and employees to settle immediately the said disallowance.

The notice also includes incumbent Mayor Efren Guntrano Gica as head of the procuring entity and contracting party, and the Bids and Awards Committee led by its chairman, Rodulfo Fernandez who is the Municipal Planning and Development Coordinator, and the members of the Technical Working Group.

The ND was signed by State Auditor III Paul Tolomia as the Audit Team Leader and Atty. Eva Cabrera, COA Supervising Auditor.

Audit disallowances not appealed within six months from receipt of the notice shall become final and executory as prescribed under Section 48 and 51 of Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines.

A Notice of Suspension was issued on July 13, 2018 to Gica detailing the observations noted and requiring submission of justification and/or reasons for violation.

“However, no compliance/submission and/or settlement was made resulting to the disallowance of P7,550,130.01 in audit,” the notice reads.

COA had audited the payments made for the preparation of the masterplan, feasibility study and detailed engineering design through consultancy services of the said amount under contract with MGR Consultancy and Allied Services, Inc.

Post-audit of the said disbursement disclosed that the procurement process conducted on the said project was in violation of Item 1, Annex A of the Implementing Rules and Regulations of Republic Act 9184, otherwise known as the Government Procurement Reform Act.

COA said feasibility study should have been done prior and independent from conduct of detailed engineering design to establish the technical viability of the project.

COA noted that the detailed engineering was already incorporated with the feasibility study thereby violating the said provision of the law.

Audit Observation Memorandum dated January 30, 2018 was also issued and received by the Office of the Mayor on February 28, 2018 but COA said no reply was received by the team. (FREEMAN)