COA questions Coast Guard’s purchase of bulletproof 'luxury vehicle’

MANILA, Philippines — The Commission on Audit has raised concerns over the Philippine Coast Guard's acquisition of a luxury vehicle worth P4.9 million without the approval of the Department of Budget and Management, as well as its purchase of brand new vehicles despite having a fleet of more than 400 vehicles.

In their 2022 audit report, state auditors ordered the PCG to secure a post-facto approval from the DBMas its 2022 purchase of a Toyota Land Cruiser Prado fell within the definition of a luxury vehicle under Administrative Order (AO) No. 14.

State auditors noted that based on the sales invoices of the sports utility vehicle (SUV) with an engine displacement of 3956 CC and an engine of six cylinders, the vehicle is "considered a 'luxury vehicle'" under AO No. 14.  

AO 14 is a Malacañang order issued during the term of then-President Rodrigo Duterte that prohibits all government agencies from acquiring and/or using luxury vehicles for their operations.

“In addition, it bears to note that the aforesaid vehicle was likewise requested for bulletproofing amounting to P2,800,000,” the audit report stated.

State auditors noted that PCG purchased the vehicle using its 2021-2022 fuel rebates from Petron Corp., with the agency shelling out P2.8 million more to bulletproof the vehicle.

COA also flagged the PCG for purchasing 31 brand new Isuzu MUX LS-A 4x2 worth P1.9 million each or a total of P58.9 million under Petrons' rebates program.

The necessity of procuring new vehicles under the rebates program of Petron Corporation "cannot be adequately established” as PCG already owns approximately 459 service vehicles, COA noted.

In its response to COA, the PCG said that the armored SUV is "necessary for the PCG to ensure safe and secured transportation of the Commandant."

The PCG also cited the need for more vehicles to support its expanding operations and services. — Cristina Chi