COA: Payment to 3 “disqualified” bidders irregular

CEBU, Philippines - The Commission on Audit has found irregularities in the payment of three contracts for the procurement of infrastructure projects in Toledo City amounting to P10.3 million last year.

In its 2013 audit report, COA found that the three contracts were awarded to bidders who should have been disqualified upon discovery in post-qualification that they did not submit valid tax clearances.

“Failure to submit the above requirements on time or a finding against the veracity of such shall be ground for the forfeiture of the bid security and disqualification of the bidder for award,” it said.

Relative to the tax clearance, COA pointed out BIR Memorandum Circular No. 16-2005 which provides that tax clearance to be issued by the Bureau of Internal Revenue should be accepted upon submission for all biddings that will be undertaken within the period of effectivity of the tax clearance.

COA said that review of procurement transactions for various infrastructure projects showed that bidders with the Lowest Calculated did not submit valid tax clearances but the City still awarded the contract to them instead of disqualifying them in post-qualification.

The projects include the proposed construction of day care and health center in the amount of P498,921.39 by Alcobe Construction; proposed road rehabilitation  Toledo – Talamban Road (Sectional) at barangays Canlumampao, Cambang-ug and Gen. Climaco in the amount of P3,965,981.54 by JJ & J Construction; and the proposed road rehabilitation at barangays Awihao, Bato and Subayon in the amount of P5,919,622.21 also by JJ & J Construction.

The City acknowledged the deficiencies and committed to adopt the recommendations to rectify these.

COA recommended that the City Bids and Awards Committee  strictly adhere to the law particularly in undertaking the post-qualification process to make certain that contracts shall be awarded only to bidders who have submitted valid and complete documents.

It also recommended that the city advise the concerned contractors to submit immediately the required documents, otherwise, payments to the subject projects shall be suspended in audit. —/NSA (FREEMAN)