MANILA - The Commission on Audit (COA) has flagged the National Printing Office (NPO) for engaging with 12 private printers with work orders worth P121.691 million without any valid contract.
In its 2018 audit report on the NPO, government auditors said the transactions were “illegal” as they were in violation of Republic Act No. 9184 or the Government Procurement Act and Presidential Decree No. 1445 or the Government Auditing Code of the Philippines.
“Review and examination of the printing operations of the NPO for Calendar Year 2018 disclosed that the Equipment Lease Agreements of the agency with private printers had expired as of September 30, 2017,” the COA report said.
The transactions involved 249 work orders for the printing of “accountable forms.”
The audit team also noted that the NPO continued its practice of leasing machines and equipment, a form of subcontracting, despite the issuance of a notice of disallowance in the 2017 report.
According to COA, the payment of 85 percent for rental of printing machines is “grossly onerous.”
“Moreover, inquiry as to the basis of the 85 percent disclosed that it was a decision by the head of the NPO in year 2012 but without any written supporting guidelines. From then on, it was adopted by the NPO,” the COA report said.
The audit team recommended that the NPO enter into valid lease agreements with private companies through competitive bidding, as well as issue certifications or waivers in cases where it cannot accommodate the requirements of requisitioning agencies due to time constraints or equipment limitations.
The COA report did not indicate that an exit interview was done as there were no comments from the NPO management.
A copy of the report was transmitted to Francisco Vales Jr., Director IV of the NPO, on June 11, 2019.
The full audit report can be downloaded from the COA website.