PH Navy OKd P340M supply deals w/o public bidding - COA

From Rappler (Jan 25): PH Navy OKd P340M supply deals w/o public bidding - COA

Aside from entering into procurement contracts without public bidding, state auditors found the Philippine Navy paid for the transactions through cash advances - a practice prohibited under current rules

AUDIT FINDING. In photo: Philippine Navy's BRP Ramon Alcaraz. File photo by Carmela Fonbuena/Rappler

 

The Philippine Navy approved supply contracts worth a total of P340.407 million in 2013 without any public bidding, the Commission on Audit found.

In a report released on Wednesday, January 21, state auditors said the Philippine Navy made the purchases using cash advances through "special disbursing officers." This practice is prohibited under the Commission on Audit Circular No. 97-002, which requires check payments for all government transactions.

Republic Act 9184 or the Government Procurement Reform Act requires government transactions to undergo public bidding.

Although RA 9184 allows exemptions for emergency supplies, COA said the contracts involved were mostly on "common and regularly used items needed in the day to day operation of the agency."

Due to the nature of the purchases, COA said the items in questions should have been included in the Philippine Navy's annual budget.

Among the contacts questioned by COA include:

P113.85 million for "other supplies and expenses"

P88.71 million for "other maintenance and operating expenses"

P30.07 million for office supplies

P26.9 million for representation expenses

P15.79 million for training expenses

P14.8 million for repairs and maintenance - other structures

P5.35 million for military and police supplies

P4.92 million for general services

P4.91 million for repairs and maintenance - land improvement

P4.49 million for medical, dental and laboratory supplies

By department, the questionable contracts were distributed as follows:

Philippine Fleet- P92.63 million.

Philippine Marine Corps - P62.52 million;

Bonifacio Naval Station - P40 million;

Naval Combat Engineeering Brigade - P34.76 million;

Naval Intelligence and Security Force - P33.73 million;

Headquarters-PN/Support Group - P29.89 million;

Naval Sea Systems Command - P18.84 million;

Fleet Marine Ready Force - P10.92 million;

Naval Logistics Center - P7.4 million;

Manila Naval Hospital - P7.3 million; and

Cavite Naval Hospital - P2.42 million

http://www.rappler.com/nation/81912-philippine-navy-audit