COA orders Makati government: Pay souvenir supplier P1.1-M

Adrian Ayalin, ABS-CBN News

Posted at Dec 24 2019 09:23 AM

MANILA — The Commission on Audit has ordered the Makati City government to pay P1.12 million to a supplier of souvenirs used in the Sampiro festival in 2015.

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

Former Makati Mayor Romulo Peña 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, brother of current city mayor Abby Binay. 

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

“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 an 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.