COA cautions Talisay City hall

CEBU, Philippines - The Commission on Audit (COA) told Talisay City Hall that centralized procurement of supplies and materials should be observed in order to avoid audit suspension and disallowances on the transactions. 

Based on the city’s accounts during the 2011 audit showed that majority of the city’s disbursement on supplies and materials were done through shopping. 

Under Section 10 of RA 9184 provides that “All procurement shall be done through competitive bidding, except as provided for in Article XVI, which comprises the various alternative methods of procurement…”

The COA also observed that procurements were made by departments. 

What is more questionable, according to the state auditor was that the suppliers where the supplies and materials were procured did not come from eligible suppliers. 

As verified by the auditors and actual inspection of the suppliers’ addresses, it was found out that some suppliers come from “sari-sari stores.”

One supplier showed a different business name but actually owned by the supplier and even bears the same official receipt. 

Some suppliers told auditors they got their stocks from known suppliers and who are not actually eligible suppliers of the goods they are selling to the city. 

“It appeared that the ordering schedules for office and other supplies are not synchronized in the General Services Office that is responsible for the procurement of supplies,” the COA report read. 

It was also observed that each department and offices had different schedules in ordering the office supplies while the purchase requests are submitted quarterly by the different department and office, which delays were observed in securing availability of appropriation from the budget office. 

COA observed that conduct of activities and programs in and for the city, the department, or office assigned to handle the activities submitted their purchase request for the needed items oftentimes only two or three days before the scheduled activity. 

“No department is observing the three-month supply stocking of office supplies. This system would have allowed bulk purchases where the agency could have availed of better prices obtained through competitive bidding,” the report read. 

GSO officer Joan Vebar said her office had resorted to procuring from these suppliers for certain items because these are the only suppliers who agreed to be paid on terms or accepted credit.

“The suppliers immediately delivered the goods requested even without the required procurement documents to support the purchase,” Vebar said, adding that the documentary compliance was done after the delivery. 

Since the GSO has no stock room, Vebar said the supplies and materials were procured by departments. 

But COA said “it is an irregular practice and makes possible different forms of abuses in this important operational transaction of the city and injustice to certain officers who have no choice but to sign certain supporting documents in the spirit of cooperation.” (FREEMAN)