COA flags OCD over pandemic response payments

MANILA, Philippines — The Commission on Audit (COA) has called out the Office of Civil Defense over questionable payments totaling P442.233 million for goods and services in connection with the OCD’s COVID-19 response.

In its 2020 annual audit report on the OCD released yesterday, the COA noted that the agency paid a total of P94.551 million to various suppliers for the procurement of goods and services without contracts.

State auditors pointed out that while the Government Procurement Policy Board (GPPB) Circular 01-2020 allows negotiated procurement during the pandemic, it still requires that the procurement be supported with a valid contract.

The GPPB Circular No. 01-2020 issued on April 6, 2020 set the guidelines for emergency procurement under Republic Act 11469 or the Bayanihan to Heal as One Act.

“Based on above-cited provisions of (GPBB Circular 01-2020), there is no showing that a procuring entity may dispense with the execution of a valid contract as one of the basic requirements for all types of procurement and basis for payment of expenditures incurred during the state of calamity,” COA said.

The audit body noted that the OCD resorted to payment based on the services rendered or products delivered.

State auditors said such mode of payment of claims for government transactions has long been disallowed under COA Resolution No. 86-58 dated Nov. 15, 1986.

In the same audit report, the COA said the OCD also made payments totaling P347.682 million for goods and services for COVID-19 response despite “contract deficiencies.”

The COA said at least 61 purchase contracts were not supported with market research as basis for the price negotiations.

The audit body said while certifications were attached to the contracts stating that the OCD exerted efforts to secure the most advantageous price to the government, such claim is considered “irrelevant and self-serving” as the “certifications were not supported with documents indicating the actual market research done.”

The COA said some of the contracts were also not supported with the necessary documents such as technical specifications, scope of work, term of reference as well as Omnibus Sworn Statement from suppliers attesting that the items they delivered were in good condition and quality.

Among the transactions flagged for lack of valid contract include catering services for staff in quarantine facilities, accommodations and meals for volunteers and OCD personnel, sanitation and decontamination services and storage charges.

The transactions flagged for deficient contracts include supply and delivery of medical supplies for frontliners and patients, catering services for personnel of testing facilities, provision of meals for OCD employees, accommodation and provision of shuttle services for medical frontliners and police and OCD personnel, procurement of hospital beds, X-ray machines and other medical equipment and supplies, janitorial services for quarantine facilities and procurement of hygiene kits.