COA orders Makati to pay P1 million in compensation to souvenir supplier

Adrian Ayalin, ABS-CBN News

Posted at Dec 12 2019 07:54 PM

MANILA - The Commission on Audit (COA) has ordered the Makati City government under the leadership of Mayor Abby Binay to pay P1.12 million to a supplier of souvenirs used in the Sampiro de Makati Festival in 2015.

In a decision dated Nov. 15, 2019, the commission granted the petition for money claim filed by OVT Graphic Line, Inc. owner Erlinda Tan against the city government.

Former acting mayor Romulo Pena had refused to pay the company after the delivery of materials as the documents related to the transaction lacked the signatures of his predecessor, dismissed Mayor Junjun Binay.

The commission, however, ruled that while the transaction suffered from “legal infirmities,” the company should be compensated based on the principle of “quantum meruit.”

“This Commission rules that the OVT should also be compensated, based on quantum meruit, which entitles a party to payment 'as much as he reasonably deserves,' for the materials and giveaways delivered to the city which were used for the Sampiro de Makati Festival Grande Parade,” the COA said.

The COA also noted that the company submitted necessary documents such as acceptance and inspection report, delivery receipts and certificate of non-payment which adequately proved its claim.

“The City Government of Makati is liable to pay OVT Graphic Line, Inc., the amount of P1,120,000.00, subject to availability of funds and the usual accounting and auditing rules and regulations,” the COA said.

The commission also directed its legal office to forward the case to the Office of the Ombudsman for filing of appropriate charges, if necessary.

The COA decision was signed by Chairperson Michael Aguinaldo and Commissioner Roland Pondoc, with a dissenting opinion by Commissioner Jose Fabia.