COA: NPO hired private printers without contracts

MANILA, Philippines — The Commission on Audit (COA) has flagged the National Printing Office (NPO) for spending P121.691 million on the services of private printers despite the lack of a valid contract. 

Based on the COA’s 2018 audit report on the NPO, the agency hired the services of several private printers to augment its capability to print accountable and specialized forms to be used in government offices.

It noted that the NPO’s “lease” agreements with the private printers had expired on Sept. 30, 2017.

“The Production Reports disclosed that in Calendar Year 2018, NPO accepted from procuring entities and accomplished 249 work orders for the printing of accountable forms under ‘Leasing’ amounting to P121,691,215.37,” the audit report read. “However, based on records, NPO did not have any valid Lease or Rental Agreement for CY 2018 nor did it conduct public bidding for the lease of printing equipment; thus, the work orders under ‘Leasing’… were illegal.”

Furthermore, the audit body said the NPO paid the private printers a separate amount totaling P120.927 million as rental fee for their printing machines, even if the use of the machines should have already been included in their services.

“Review of the CY 2018 Report of Checks Issued disclosed that NPO paid 12 private printers in CY 2018 for the alleged rental fee of leased printing equipment in the total amount of P120,927,408.00 although documents would show that the amount paid was already tantamount to the production cost; therefore, it was a subcontract and thus, irregular,” the COA said.

It said the payment was in violation of Section 4.6 of the Government Procurement Policy Board Resolution No. 05-2010, which provides that the appropriate Recognized Government Printers engaged by the NPO “shall directly undertake the printing services for the contracts entered into, and cannot engage, subcontract or assign any private printer to undertake the performance of the printing services.”

COA recommended to the NPO to enter into a valid Equipment Lease Agreement through competitive bidding and to “issue a certification/waiver in cases where NPO cannot accommodate the printing requirements of requisitioning agencies due to time constraints and/or equipment limitations.”