MANILA — A construction and landscaping firm that the Tourism Infrastructure and Enterprise Zone Authority awarded a contract to in 2011 was not the only possible source of Christmas decorations, the Supreme Court ruled as it upheld state auditors' disallowance of the P2.3 million paid for the project.

In a release, the SC Public Information Office said the contract for Christmas decor and lights for the Department of Tourism building should have been bid out according to the Government Procurement Reform Act.

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Although direct contracting is allowed, the procuring agency must be able to justify skipping competitive bidding.

The SC, in its ruling, said the procuring agency should also "conduct an industry survey to determine the supply source and confirm the exclusivity of the source of goods or services to be procured."

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The SC PIO said the court stressed that the agency "must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms."

Because TIEZA failed to show that the Christmas lights and decorations could not be procured anywhere else, the Court said the disallowance of the disbursement of funds for the project should be affirmed.

TIEZA COO Mark Lapid and other officials brought the disallowance, which had already been affirmed by the Commission on Audit Proper, to the Supreme Court for review.

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Money from a disallowed disbursement must be returned to the government.

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