COA slams splitting of DND contracts for disaster relief

MANILA, Philippines - The Commission on Audit (COA) questioned the splitting of contracts by the Office of Civil Defense (OCD) under the Department of National Defense (DND) in the purchase of P290.2 million worth of relief goods for victims of three typhoons and an earthquake last year.

State auditors said the purchase of the relief goods through negotiated or small value procurements circumvents the requirements of existing regulations under Republic Act 9184 or the Government Procurement Reform Law.

In a report released yesterday, COA said the OCD, headed by DND Undersecretary Benito Ramos, also violated Presidential Decree 1445 or the Government Auditing Code of the Philippines.

Records show that the agency, using its Quick Response Fund, purchased non-food relief items worth P16.7 million; P27.3 million; P28.4 million; and P35.4 million, from January to April 2012 for victims of Typhoon Sendong and an earthquake in Region 7.

The OCD spent P75.1 million for the same items for victims of the monsoon floods in August, along with another P34.1 million in November for victims of Typhoon Ofel and P73 million for victims of Typhoon Pablo in December.

State auditors said all government procurement should undergo competitive bidding except in highly exceptional cases, adding that the most advantageous price should always be obtained.

The required posting of the invitation or request for submission of price quotations and the notice of award in the website of the OCD and at the premises of agency were not met, COA said.

While the purchase was within the threshold, the audit team said examination of the documents showed the contracts were bagged by the same suppliers or those with the same business address. –  With Alexis Romero