COA calls out National Museum for P51 million projects

MANILA, Philippines — The Commission on Audit (COA) has flagged the National Museum of the Philippines (NMP) for supposedly violating the procurement law in connection with three projects amounting to P51 million and for inadequate internal control of more than 1,000 artworks and archeological specimens it loaned to government agencies and private institutions.

In its 2020 annual audit report on the NMP, the COA found irregularities in the agency’s awarding of contracts and implementation of infrastructure projects and a security services deal.

“The NMP did not comply with the provisions of Republic Act (RA) 9184 or the Government Procurement Reform Act,” the COA said.

Among the projects questioned by state auditors was the restoration and site development of the Loon Church complex in Bohol amounting to P49 million.

The church was damaged during the 7.2-magnitude earthquake that struck Bohol in 2013.

The COA said the project, awarded to contractor 401 Development and Construction Corp., is the second phase of the restoration of Loon Church. The first phase started in 2016.

“Two similar projects for restoration of the Loon Church is indicative of splitting of contracts since its implementation was divided into phases with no clear delineation of work,” the audit body said.

“Moreover, the first project sourced from the 2016 GAA (General Appropriations Act) was not yet completed when the second project was started,” the COA added.

Adding the first phase, state auditors said the project now has an aggregate amount of P150.3 million and is being implemented simultaneously without clear delineation of work.

“Without a clear scope of work and close coordination, two groups deployed by the contractor in one location will affect the project’s planning and assigning of duties to personnel,” the audit body said.

Also flagged was the repair of the Angono- Binangonan site museum and satellite office worth P799,988, which was awarded to JMARC-Q Construction and Supply.

The COA said the validity of the contractor’s performance security bond was only until May 28, 2020, contrary to Section 62 of the Revised IRR of RA 9184, which states that the performance security shall cover the “defects liability period of one year from project completion up to the final acceptance by the procuring entity.”

The agency said the NMP Bids and Awards Committee failed to verify the accuracy of the computation of price quotation submitted by the bidder, resulting in the execution of contract with an erroneous amount.

The COA said the contract was amended in August 2019, reducing the project amount from P799,988.32 to P723,192.21.

The NMP’s contract for its security services amounting to P1.3 million awarded to JSL Security Agency Inc. was not submitted to the COA within five working days.

The Notice of Award was also not posted in the Philippine Government Electronic Procurement System website within three days from its issuance.

The COA said both lapses were in violation of the government’s procurement rules.

In the same audit report, the COA called out the NMP for inadequate internal control of more than 1,000 artworks and archeological specimens it loaned to various government agencies and private institutions.

The COA said that while the NMP’s Archaeology Division reported that a total of 1,084 artworks and archeological items were still on loan, no supporting documents with the government institutions were presented.

Among the loaned items were ceramics, stoneware, earthenware, animal bones, human bones, fossils and lithics.