Talisay vehicles upkeep costs more than new units

CEBU, Philippines - State auditors want the Talisay City Government to determine who is responsible in the repairs of 11 vehicles and heavy equipments that costs P7.272 million.

According to the Commission on Audit (COA), the expenditures, including that which was  more than four times the value of a new unit, were “highly disadvantageous” to the government.

“The cost of repairs of motor vehicles/heavy equipment totaling P7,272,750 is prohibitive and highly disadvantageous to the government since it reached as high as 74.33 percent to 865.41 percent of their acquisition cost,” read the Commission on Audit (COA) Audit Observation Memorandum.

The vehicles and heavy equipments include a garbage compactor, a garbage truck, an Isuzu dropside, a Fusio Canter, a Mitsubishi Strada, a road roller, a grader, a backhoe and a payloader.

Records showed that 20 repair transactions were made through small value procurement and public bidding January to June this year.

The COA said the transactions already exceeded the 60 percent limit set under Section 4, Title I of COA Circular 92-386.

“Common sense would dictate that it is more economical to purchase brand new or surplus units than have (the vehicles) repaired, considering the cost,” read the report.

The COA said comparison made on the total cost of repairs against the cost of buying surplus units showed a significant difference of 89.66 to 469.05 percent of current market prices.

It means that if a brand new truck costs P500,000, repairs made on a similar but old truck already costs the City at least P948,300.

COA also discovered that a garbage compactor (SGU 742) was repaired four times in a span of two months. Cost of repairs reached P1.135 million, with scope of work and some replaced parts discovered to be just the same.

In its recommendation, COA told the City’s Bids and Awards Committee and its Technical Working Group to scrutinize and evaluate carefully purchase requests for repairs of vehicles and equipment. —/RHM (FREEMAN)