COA scolds PCG on P2.69-B undelivered equipment

MANILA, Philippines — The Commission on Audit (COA) scolded the Philippine Coast Guard (PCG) over its failure to demand the timely delivery of P2.69 billion worth of equipment, supplies and helicopters procured through the Department of Budget and Management (DBM) and the Philippine International Trading Corp. (PITC).

Based on the COA’s 2018 annual audit report, the PCG transferred P807.165 million to DBM’s Procurement Service for the procurement of two multi-purpose twin engine helicopters amounting to P777.6 million and common supplies and equipment worth P29.565 million. 

The COA said that as of Dec. 31, 2018 none of the helicopters have been delivered to the PCG while P6.543 milion worth of common supplies and equipment remain to be delivered.

As for the PITC, the COA said P1.906 billion was tranferred by the PCG to the state-owned trading firm in 2017 and early 2018 for 41 procurement projects in connection with the PCG’s operational equipment needs.

The COA said that as of Dec. 31, 2018, the fund transfers remain unliquidated even if 19 of the 41 procurement projects should have been completed by end of 2017.

“Moreover, no delivery of outputs was made by PITC for fund transfers received by the agency in the first half of 2018,” the COA said.

Among the items that the PCG procured through PITC were communications equipment, LED lanterns, navigational buoys, pistols, machine guns, nine heavy cargo trucks, generator sets, K-9 dogs, high-speed response boats, tactical boots, body-worn cameras, coastal surveillance cameras, air-conditioning units, inflatable boats, radar equipment and repairs of several PCG stations.

The audit body said the PCG could have undertaken the procurements itself, noting that the agency has four bids and awards committees, technical working groups (TWGs), procurement service office and an infrastructure development service office.

In a reply incorporated in the audit report, the PCG said P814.075 million was returned to the agency as of last February, including the P777.6 million intended for the procurement of the helicopters.

The PCG said the PITC completed two procurement projects totalling P228 million but did not provide any detail about the projects.

The PCG said it has directed its TWGs to press the DBM and PITC to submit the lacking liquidation documents and to conduct a regular monitoring of the outstanding procurement projects.