April 26, 2011

THE Commission on Audit (COA) has questioned Cebu City Hall’s purchase of 6,000 fire extinguishers worth P10.8 million for schools, barangays and several government offices.

In its audit observation report, COA asked why the notice of award was issued by the City to the bidder even before a post-qualification was made, contrary to the law.
COA pointed out that the post-qualification was done on Dec. 2, but the notice of award was issued on Dec. 1.

Under Republic Act 9184 or the Government Procurement Reform Act, a post-qualification should be made to ensure that the bidder with the lowest calculated bid passed all requirements and conditions before the notice of award can be issued.

The state auditors also questioned Councilor Jose Daluz III for signing the purchase requests for the fire extinguishers when these were supposed to be done by the executive department, particularly that of the General Service Office (GSO).

Practice

He was also questioned for recommending approval for the transaction.

Sought for comment, Daluz who chairs the City Council committee on budget and finance, said he was surprised by the observations of COA.

“Ever since mao na ni’y gibuhat nato (We’ve been doing this ever since executive functions were delegated to us). We were given delegated powers gud, executive functions during the time of Tommy (former mayor now Rep. Tomas Osmeña) pa,” he said.

Daluz said that in December last year, he was asked by Mayor Michael Rama to facilitate the purchase of the fire extinguishers.

He also gave the recommending approval for the transaction as this was the practice ever since he assumed his post at City Hall.

Sharing

“Kami tanang councilors papirmahon gyud sa recommending approval when we make purchases because ang department heads moingon man nga sila ray ma-priso kung magkinaunsa. Maayo nang kami sad mo-pirma. So we are sharing the risk. We are putting our name on the line. It will also testify nga okay na nga purchase (All city councilors sign the recommending approval when City Hall makes purchases because department heads used to complain that they were the only ones who get imprisoned when something goes wrong. Our signature is our way of saying this purchase is aboveboard),” Daluz said.

For the issuance of notice of award before the post-qualification, Daluz said the notice was actually issued to the bidder only on Dec. 28.

But maybe, he said, the notice of award was made on Dec. 1 yet.

Daluz said he will be submitting a written answer to COA’s questions to assure state auditors that the transaction is aboveboard.

Source: http://www.sunstar.com.ph/cebu/local-news/2011/04/26/coa-questions-purchase-firefighting-devices-city-hall-councilor-s-role-15

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