COA flags PAO over P4.8-million payment for building design

MANILA, Philippines — The Commission on Audit (COA) has called out the Public Attorney's Office (PAO) for the release of P4.8 million payments for the architectural and engineering design of its new central office along Commonwealth Avenue in Quezon City despite incomplete documents. 

Based on the COA audit report published on its website on Wednesday, the PAO, on March 1, 2017, entered into a Memorandum of Agreement (MOA) with the National Housing Authority (NHA) and the Department of Public Works and Highways (DPWH) for the architectural and detailed engineering design of its central office building with a total budget cost of P12 million.

COA said even without the necessary supporting documents from NHA and DPWH, PAO released two checks – one dated March 16, 2017 amounting P1.8 million and the other dated Aug. 2, 2017 amounting P3 million, or a total of P4.8 million – representing the payments.

Among the required documents not submitted were probable construction costs, quantity and cost estimates, construction schedule and bid documents, among others.

The COA noted that under the MOA, the all the deliverables should have been completed by the NHA and DPWH by December 2017 but only 40 percent was completed.

In a text message to reporters, PAO chief Persida Acosta said they released the partial payment of P4.8 million as there was already partial compliance by the DPWH and NHA.

“The MOA states that it should be progressive billing, meaning when there is already a partial compliance, there should be a partial payment,” she said.

Acosta said the groundbreaking for the construction of the proposed office building the is tentatively scheduled on May 30. – Edu Punay