COA says Barili overpriced vehicle procurement

CEBU, Philippines – The Commission on Audit has found the procurement of three motor vehicles in Barili amounting to P3.1 million to be overpriced.

The state auditors also discovered that the purchases were made without a competitive bidding in violation of the government procurement law.

“The procurement of three motor vehicles totaling to P3,173,750 were not subjected to competitive bidding and lacked the necessary supporting documents as required under Rule IV, Section 10 of RA 9184 and Item 6 of Section 4 of (Presidential Decree) 1445, which resulted in overpricing amounting to P465,450 and casting doubt on the validity of the disbursements,” read COA’s report.

Barili bought a Mitsubishi Strada 2013 model for P1,498,750 through direct contracting, a reconditioned Mitsubishi service vehicle at P486,000 and a 6-wheeler dump truck at P1,189,000.

According to the state auditors, the procurement was overpriced by at least P465,450.

COA noted that the bids and awards committee did not conduct a public bidding prior to the purchase of the Mitsubishi Strada, which was used as rescue vehicle.

The two other vehicles underwent public bidding but did not comply with the required posting at the Philippine Government Electronic Procurement System.

“Instead, an outright negotiated procurement was made in the acquisition of the rescue vehicle as published in the Philgeps one day after the Notice of Award has been issued to the supplier on October 23, 2013. On the other hand, the purchases of two other vehicles were not posted in the Philgeps evidencing that there was actual bidding conducted,” said COA.

The audit body said that the brand new Mitsubishi Strada was overpriced by at least P207,750. The second-hand Mitsubishi service vehicle purchased from Lope Marketing was also higher by P257,000.

For the two vehicles, Barili paid P1.9 million which COA said higher by P465,450 based on their own appraisal.

As with the dump truck unit, COA noted among others that there were “alterations” in the sale invoice and delivery receipts.

COA also discovered that Aggregate Industrial Merchandise which supplied the brand new Mitsubishi Strada was “not authorized to engage in dealing motor vehicles” under the Department of Trade and Industry registration.

On July 22, 2014, the town issued a demand letter to supplier Aggregate Industrial Merchandize for the refund of the overpriced amount, in which it agreed and requested that it would want to convert the amount into additional disaster accessories and equipment instead of giving back the money. The mayor approved the said request and the items were then delivered to the town.

The Mitsubishi service vehicle was also found unserviceable when COA conducted an inspection in December last year. —/FPL (FREEMAN)