THE Commission on Audit (CoA) has issued a final ruling affirming its order to disallow the 2007 procurement contracts of the Philippine National Police (PNP) worth P399.064 million on parts and services for 18 V-150 Light Armored Vehicles.
CoA chairman Michael G. Aguinaldo and Commissioners Jose A. Fabia and Isabel D. Agito junked the petition for review filed by Supt. Rainier A. Espina, former acting chief of the PNP Office of the Directorate for Comptrollership-Management Division.
Espina sought to overturn the CoA Fraud Audit Office ruling on September 10, 2013 that upheld two notices of disallowance (NDs) issued against the transactions.
ND No. 2012-10-024 was issued for the purchase of 40 tires after auditors found that half of what was delivered allegedly did not conform to specifications set in the supply contract agreement.
While supplier Serpenair Group Inc. was supposed to provide 40 Michelin 14.00 R20 XML (on-road type), the CoA said it only delivered 20 tires with the specifications while the other 20 were Michelin 14.00 R20 XZL and Petlas (PM 40) #20 (off-road type). The disallowance covered P1.47 million, equivalent to the cost of 20 tires that did not comply with the requirements.
On the other hand, ND No. 2012-10-025 for transactions worth P397.594 million was issued on October 18, 2012 involving the acquisition of spare parts, accessories, and service costs for the LAV V-150.
Some of the findings cited in the CoA decision were the lack of public bidding, award of the contracts to suppliers who did not have the proven technical and financial capacity to undertake the procurement, under-delivery or ghost deliveries worth P83.9 million, unsubstantiated release of payments amounting to P66.567 million, and non-submission of defective/replaced parts as proof that necessary repairs were made.
Aside from Supt. Espina, also held liable were former PNP Director General Avelino Razon, PNP Logistics Support Service acting director Supt. Teodorico Lapuz IV, Bids and Awards Committee chairman Sr. Supt. Emanuel Ojeda, PNP LSS chairman Reuel Labrado, BAC vice chairman Sr. Supt. Victor Puddao, BAC members Chief Inspector Annalee Forro and Supt. Edgar Pataan, purchasing officer Supt. Josephine Dumanew, and PNP-LSS Transportation and Maintenance Division chief Victor Agarcio.
Also held liable were contractor-suppliers RJP International Construction and General Services, Enviro-Aire Inc, and Evans Spare Parts Motor Works RPR and Trading.
The CoA pointed out that the issuance of the notices of disallowance on the two transactions was proper after it was shown that the inspection and acceptance reports were approved despite the supposed numerous discrepancies noted.
“Inspection is an essential component of the procurement process to ascertain whether the specifications required, as to quantity and quality, are met. This Commission resolves to deny this petition. In view of the violations of laws and regulations, this case shall be referred to the Office of the Ombudsman,” the CoA said.