COA: OCD used disaster funds to buy P.5-million TV sets

MANILA, Philippines –  A Commission on Audit (COA) report showed that the Office of Civil Defense (OCD), the operating arm of the National Disaster Coordinating Council (NDCC) under the Department of National Defense, had purchased 13 LCD television sets worth over P500,000 without any public bidding in 2009.

COA said the purchase apparently violated the Government Procurement Reform Act and was done using funds that were supposed to be used for emergency response.

Among the television sets purchased were widescreen units like a 60-inch LG TV that is being used by the Operations Division, a 47-inch LG TV that went to the Office of OCD administrator Maj. Gen. Glenn Rabonza, and two 42-inch LG TV sets that went to the office of then Deputy Administrator Anthony Rolando Golez Jr. and the Office of the Executive Director.

“Thirteen LCD television sets worth P561,766 that were purchased out of the Quick Response Fund contrary to its intended purpose, and without the benefit of public bidding contrary to RA 9184, are deemed unnecessary, excessive and extravagant,” the 2009 COA report said.

It explained that under COA Circular No. 85-55A and Sections 163 and 165 of the Government Accounting and Auditing Manual (GAAM), such purchases fall under the category of “irregular, unnecessary, excessive, extravagant and unconscionable expenditures” and “that is not essential or that which can be dispensed with without loss or damage to property.”

The COA report described the purchase of the TV sets as extravagant as it was allegedly “incurred without restraint, judiciousness and economy. They exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive, and injudicious.”

It noted that the OCD should not have used its Quick Response Fund which is supposed to serve as a “standby fund to be used for relief and rehabilitation programs in order that situation and living conditions of people living in communities or areas stricken by calamities, epidemics, crisis, and catastrophes occurring during the year may be normalized as quickly as possible” in accordance with Section 2 of the Special Provision on the use of Calamity Fund under the General Appropriations Act for Fiscal Year 2009.

The COA report said that verification of the purchase order for the TV sets showed that the purpose of the procurement was “For the Official Use of OCD-NDCC” yet the units were distributed to various offices of the OCD which are not even involved in monitoring operations.

The OCD management told state auditors that equipment is to be used in relation to their monitoring of situations around the country.

“But we find this reason not acceptable because we deemed it unnecessary for these offices in the sense that primarily, they are not involved in the monitoring of current information or situation analysis in relation to disaster/calamity all around the country since these are the functions of the Operations Division who then gives advisory/ies to the concerned officials. At present, the Operations Division is fully equipped with four sets of the latest and huge plasma TVs and six sets of conventional TVs,” the COA report said.

COA recommended that the OCD adhere strictly to the provisions of COA Circular No. 85-55A; monitor and control the expenses to be incurred in order to minimize, if not prevent, wasteful, excessive and unnecessary expenditures; and use the Quick Response Fund only for its intended purpose.

The COA report said the management should also adopt public bidding as a general mode of procurement pursuant to RA 9184 instead of just “shopping” for equipment.