OVP bypassed procurement laws in rush to build satellite offices – COA

MANILA, Philippines — The Office of the Vice President did not fully comply with the country's procurement laws when it purchased new equipment for its satellite offices in 2022, the Commission on Audit has found.

In its 2022 audit report on the OVP, state auditors flagged the OVP’s procurement of P668,197-worth of equipment, which was paid through reimbursement of officials' personal cash. 

The OVP resorted to making purchases through reimbursement due to its decision to immediately open its satellite offices even if it did not yet have enough equipment to operate, COA noted.

“As per inquiry, the immediate establishment of (satellite offices) were made due to Management’s intention to immediately expand services offered by OVP to various provinces. However, controls to ensure that government resources were utilized as intended and prevented from loss should also be considered,” the report stated.

Although state auditors noted that the OVP purchased items with the lowest price in the market, its failure to comply with Republic Act 9184 and its implementing guidelines “defeats the purpose of the Procurement Law, which is to standardize and to improve transparency in the procurement process.”

In response to state auditors' comments, the OVP said that its purchases were done through reimbursement because of the immediate need to have the satellite offices ready with equipment.

“Due to the time constraints imposed by RA No. 9184, the Procurement Unit was unable to process requests at the time of opening of the (satellite offices) on July 1, 2022,” the OVP said in the audit report.

“It was agreed during the discussion meeting with the Administrative and Financial Services Office Group heads that reimbursement would be the best option to address the immediate need,” they added.

The OVP in 2022 launched satellite offices in several regions to expand the delivery of its services, particularly its medical, hospitalization and burial assistance.

These satellite offices were launched July 1, 2022 — the first day of Vice President Sara Duterte’s term.

The OVP also said in the audit report that it would comply with the provisions of the Procurement Act in its future purchases.