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‘Taints of irregularity’ Iloilo Capitol BAC in ‘hot water’ over

Posted on June 30, 2012

By Florence F. Hibionada

ILOILO, PHILIPPINES – Two suppliers of the Iloilo Provincial Government (IPG) who bagged spare parts deal and procurement of a new vehicle for Capitol’s use were discovered to have been ineligible.

With procurement contracts worth P228,846.43.00 and P1,592,000.00 respectively, the Commission On Audit (COA) ruled that both should have been disqualified. As such, “the contract should not have been awarded to them” and the subject suppliers should not have been the winning bidders.

In fact, “carefully review” the documents, COA said if only to liberate the Capitol with “awarding of contracts from undesired taints of irregularity.”

Contained in the latest COA report, explained was the manner of discovery of the suppliers’ disqualification. Turned out that company papers submitted before Capitol’s Bids and Awards Committee (BAC) nailed it for the suppliers.

To note, COA on a “test basis” pored over Disbursement Vouchers (DVs) as per government mandated post-audit. Examination of DV Nos. 100-10-12-19886 and 100-11-05-8909 under Check Nos. 3814619 and 3927620 disclosed erroneous computation of the suppliers’ eligibility requirements as reflected in the supporting documents.

Specific papers questioned and compared by State Auditors were company papers as submitted to the Bureau of Internal Revenue (BIR) and that with the Capitol BAC. The result came out with discrepancy uncovered on the suppliers’ Statement of Net Financial Contracting Capacity (NFCC) that was apparently bloated.

The P228,846.43 spare parts procurement contract was awarded to Jesa Motor Parts Supply while P1,592,000.00 vehicle procurement was awarded to Nissan Inc.

Jesa Motor Parts as per BAC records had contracting capacity of P12 million however COA recomputation revealed actual capacity of a little over P1 million only.

Similar scenario with Nissan where current assets data used in NFCC computation showed over P76.3 million yet review of the Balance Sheet disclosed some P57.5 million “only.” Matched it with the company’s total current liabilities, COA said “negative working capital” of over P6.8 million was established.

Over-all the COA said, the suppliers were not financially capable to undertake the delivery of goods.

The BAC has since been asked to explain why both suppliers were declared the winning bidders “and consequently awarded the contracts.”

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