COA questions procurement of extinguishers

CEBU, Philippines - Cebu City’s resident auditor questioned City Hall’s purchase of 6,000 fire extinguishers in 2010 worth more than P10.1 million as it did not follow proper bidding process.

City Auditor Eva Cabrera said the Bids and Awards Committee awarded the contract to a supplier that failed to submit all the documentary requirements.

Also, the city did not identify the end users that resulted in excessive purchase.

More than 900 extinguishers were not distributed and kept in the warehouse. However, an inspection done by the Commission on Audit revealed that more than 500 were missing.

Cabrera said, the supplier, BCT, did not submit documents to show its on-going and completed government and private contracts as well as awarded contracts that are yet to be undertaken.

Cabrera said BAC’s actuations violated certain provisions as provided for under Republic Act 9184, otherwise known as Government Procurement Reform Act.

COA’s report stated that City Administrator Jose Marie Poblete tried to justify BAC’s failure to disqualify BCT by saying that the deficiency of non-submission of the track record of the supplier was cured upon its delivery of the purchased products.

But Cabrera argued that “to qualify a bidder and eventually awarding the contract to it despite a flagrant violation of the law will give the impression of the absence of competitiveness and bias towards a particular supplier.”

The state auditors also observed that there was no proper planning done by the city officials when they decided to purchase the hundreds of firefighting equipment.

COA found out that except for the Purchase Request and Program of Work, the purchase of the 6,000 fire extinguishers was not supported with a detailed list of recipients.

Cabrera said the documents only showed that out of the 6,000 units of fire extinguishers, 976 did not have intended users, which had an equivalent value of P1,649,440.

“This may indicate poor planning which may result to eventual wastage of government resources if these extinguishers remain undistributed in the warehouse until expiration thus violating the law,” the state auditors said.

COA also found out that there were 519 units of fire extinguishers worth P877,110 that were not found during the physical inspection.

The custodians of the items failed to present documents to show that these have been distributed.

COA also found out that some of the firefighting equipment that were already distributed by City Hall were not properly documented, specifically in the barangay level where these were also distributed to the sitios.

“We have noted the lack of proper documentation in the receipt of these assets by end-users that would determine actual custody of an accountability for the equipment and which may result to loss of government property,” Cabrera said.

The law provides that every officer accountable for government property shall be liable for its money value in case of improper or unauthorized use.     - THE FREEMAN