In Pinamungajan: COA: Auditorium is overpriced

CEBU, Philippines - The Commission on Audit (COA) has found the construction of an auditorium of the Municipality of Pinamungajan last year as overpriced by P4.3 million.

This prompted State Auditor Flora Taborada to ask incumbent Mayor Glenn Baricuatro to require persons identified liable to the construction of the auditorium to refund the excessive contract cost.

In an Audit Observation Memorandum (AOM) dated October 9, 2013, Taborada informed Baricuatro that the contract amounting to P19.9 million was above COA’s allowable cost of P15.5 million, pointing out to the “overpriced and over estimated quantity of materials used in the project.”

The auditorium was reportedly constructed and completed during the administration of former mayor Geraldine Yapha who entered into the contract agreement with Linear Construction Corporation as the winning bidder.

Based on COA Resolution Ni. 91-52 dated September 21, 1991, contract costs should be equal or less than the COA estimates plus 10 percent thereof, otherwise the contract cost is deemed excessive.

Prior to the issuance of AOM, COA Regional Director Sabiniano Cabatuan, in his memorandum dated May 24, 2013 already confirmed that the contract price was 40.60 percent above the COA cost evaluation.

Sabiniano said that the “excessiveness is due to the overpriced materials used in painting works, and also the overestimated quantity of materials which include concrete works, rebar works, wall and ceiling finishes particularly plastering works and painting.”

Taborada on the other hand recommended that the municipal engineer strictly abide with the rules and regulations and procedures in the preparation and review of the program of cost estimates, plans and specifications and other supporting documents of all infrastructure projects.

COA also asked Baricuatro to comment on the said audit observations. —/ATO (FREEMAN)