COA flags Vice President’s office for skipping procurement laws | ABS-CBN
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COA flags Vice President’s office for skipping procurement laws
COA flags Vice President’s office for skipping procurement laws
Adrian Ayalin,
ABS-CBN News
Published Jul 03, 2023 04:54 PM PHT
MANILA — The Commission on Audit (COA) has flagged the Office of the Vice President (OVP) for procuring equipment for its satellite offices without adhering to procurement laws.
In its 2022 report on the OVP, state auditors said the equipment the office procured had a total amount of P668,197, and were obtained without following procedures mandated by the Government Procurement Reform Act.
MANILA — The Commission on Audit (COA) has flagged the Office of the Vice President (OVP) for procuring equipment for its satellite offices without adhering to procurement laws.
In its 2022 report on the OVP, state auditors said the equipment the office procured had a total amount of P668,197, and were obtained without following procedures mandated by the Government Procurement Reform Act.
State auditors noted that although it was ensured that the lowest price was obtained, the office failed to undergo the processes required under the law for standardization and improvement of transparency.
The report said that the immediate establishment of satellite offices (SOs) outside Metro Manila without enough equipment led to the OVP’s decision to resort to the immediate purchase of semi-expendable property using the cash of its officers, which the OVP subsequently paid through reimbursement.
“As per inquiry, the immediate establishment of SOs 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 auditors said in the report.
State auditors noted that although it was ensured that the lowest price was obtained, the office failed to undergo the processes required under the law for standardization and improvement of transparency.
The report said that the immediate establishment of satellite offices (SOs) outside Metro Manila without enough equipment led to the OVP’s decision to resort to the immediate purchase of semi-expendable property using the cash of its officers, which the OVP subsequently paid through reimbursement.
“As per inquiry, the immediate establishment of SOs 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 auditors said in the report.
The audit report stated that the OVP agreed to the recommendations that procurement transactions that resort to reimbursement should be stopped as it defeats the purpose of the procurement law, among others.
The OVP, for its part, told state auditors it ensured the quality and low prices of the items it had procured.
It also vowed to follow guidelines under the law when processing future transactions.
“Rest assured that we remain committed to ensuring that all OVP properties are used prudently,” the OVP told the audit team.
The audit team also noted that the OVP failed to take advantage of discounts for senior citizens and Persons With Disability (PWD).
The report said that 471 out of 1,083 clients of the OVP for the purchase of medicines were with unavailed discounts for seniors and PWDs.
Among the reasons cited was the failure of the clients to bring their identification cards, but the OVP told the auditors that they will be posting reminders on their website.
“In addition, the Public Assistance Division has already drafted an amendment to the medical and burial assistance program guidelines to ensure the availment of authorized discounts for senior citizen and PWD clients,” the audit team said.
The audit also revealed that the OVP lacked internal guidelines and processes on in-kind donations because of delayed submission of reports and non-posting of reports on the OVP website, contrary to COA guidelines.
“Rest assured that we remain committed in ensuring the prudent use of donations made to the office for proper transparency to our partner donors and accurate presentation of donations received by the office,” the OVP told the audit team.
The Notes to Financial Statement part of the OVP audit reveals that confidential expenses of the office currently led by Vice President Sara Duterte rose to P125 million in 2022, from zero confidential funds in 2021 under former Vice President Leni Robredo.
Assistance and subsidy of the OVP to local government units and non-government organizations, however, went down to a total of P378.82 million in 2022 from P526.713 million in 2021.
Among the subsidies itemized were medical and burial assistance amounting to P304.67 million in 2022 from P327.267 million in 2021.
Utilization of transferred funds to various hospitals was also down to P30.537 million in 2022 from P167.245 million in 2021.
Educational assistance, however, increased to P936,121 in 2022 from P35,000 in 2021 to, as well as sustainable livelihood and training subsidy assistance amounting to P20.138 million in 2022 from P7.431 million in 2021.
The audit report stated that the OVP agreed to the recommendations that procurement transactions that resort to reimbursement should be stopped as it defeats the purpose of the procurement law, among others.
The OVP, for its part, told state auditors it ensured the quality and low prices of the items it had procured.
It also vowed to follow guidelines under the law when processing future transactions.
“Rest assured that we remain committed to ensuring that all OVP properties are used prudently,” the OVP told the audit team.
The audit team also noted that the OVP failed to take advantage of discounts for senior citizens and Persons With Disability (PWD).
The report said that 471 out of 1,083 clients of the OVP for the purchase of medicines were with unavailed discounts for seniors and PWDs.
Among the reasons cited was the failure of the clients to bring their identification cards, but the OVP told the auditors that they will be posting reminders on their website.
“In addition, the Public Assistance Division has already drafted an amendment to the medical and burial assistance program guidelines to ensure the availment of authorized discounts for senior citizen and PWD clients,” the audit team said.
The audit also revealed that the OVP lacked internal guidelines and processes on in-kind donations because of delayed submission of reports and non-posting of reports on the OVP website, contrary to COA guidelines.
“Rest assured that we remain committed in ensuring the prudent use of donations made to the office for proper transparency to our partner donors and accurate presentation of donations received by the office,” the OVP told the audit team.
The Notes to Financial Statement part of the OVP audit reveals that confidential expenses of the office currently led by Vice President Sara Duterte rose to P125 million in 2022, from zero confidential funds in 2021 under former Vice President Leni Robredo.
Assistance and subsidy of the OVP to local government units and non-government organizations, however, went down to a total of P378.82 million in 2022 from P526.713 million in 2021.
Among the subsidies itemized were medical and burial assistance amounting to P304.67 million in 2022 from P327.267 million in 2021.
Utilization of transferred funds to various hospitals was also down to P30.537 million in 2022 from P167.245 million in 2021.
Educational assistance, however, increased to P936,121 in 2022 from P35,000 in 2021 to, as well as sustainable livelihood and training subsidy assistance amounting to P20.138 million in 2022 from P7.431 million in 2021.
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