COA finds Pampanga mayor liable for anomalous purchase of P39.2 M construction materials

By Ben Rosario

MEXICO, Panpanga -- The three-man Commission on Audit-Commission Proper has ordered the filing of criminal charges against a Pampanga mayor and a construction supply firm in connection with irregularities in the purchase of some P39.2 million construction materials for this municipality

In a decision handed down early this week, the COA-CP headed by Chairman Michael Aguinaldo affirmed the Notice of Disallowance issued by the Special Audit Team on June 2, 2013 to the local government of Mexico under Mayor Teddy Tumang.

In the decision, the COA panel directed the audit agency’s prosecution and litigation office to refer the case to the Office of the Ombudsman for the possible filing of appropriate charges against Tuman, Marlon L. Maniacup, chairman of the Mexico Bids and Awards Committee, Jesus S. Punzalan, BAC vice chairman and all BAC members.

Charges were also sought against Willian Colis, proprietor of Buyu Trading and Construction; Avelina P. Reyes, and Lucila M. Agento, municipal treasurer and budget officer, respectively; and Romeo M. Razon.

“In view of the violations of the provisions of RA No. 9184, this case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transactions,” the COA-CP said.

The ND’s were based primarily on the series of anomalous purchases of a total P39,207,066.70 worth of construction materials on various dates in 2007, 2008, 2009 and 2011.

COA special audit examiners noted that the construction materials were supplied by Buyu Trading and Construction, described by COA as a “supplier with questionable capacity.”

Records of the case showed that the BTC’s registered palce of business is a residential home and that no construction materials was found there when inspected by audit examiners.

Auditors also disclosed that BTC failed to issue official receipts to cover the transactions.

Further, COA said the Bids and Awards Committee resolution of award was found to be “fabricated to facilitate payment of disbursement vouchers.”

“Price quotations supposedly submitted by different dealers in sealed envelopes appear to have been filled by one and the same person due to similar handwriting on the quotations,” the ND records indicated.

Tumang appealed the ND, arguing that there has been ‘no iota of evidence” that would evidence conspiracy between Mexico officials and the construction firm.

However, the SAT declared it did never held Tumang liable for conspiracy with the winning bidder.

Instead, auditors implicated him for failing to do his job of exercising due diligence over fiscal matters of his municipality.

The COA CP upheld the issuance of the ND, pointing out that local officials were blamed for resorting to “splitting of contracts” which is prohibited under Republic Act 9184, the Government Procurement Act.

The panel stressed that splitting of contracts is usually resorted to in order to “avoid the circumvention of the requirements of law for public bidding and shopping.”

“In this case, the amount covered by each contract, exceeded the allowable threshold, which is P100,00000 for a fourth class municipality like Mexico, Pampanga, that should have required prior approval of the Head of Procuring Entity (HOPE) and be justified by the conditions provided under Section 48 of RA No. 9184,” explained the COA-CP.

It added: “Clearly, none of the conditions existed to qualify shopping as an alternative mode of procurement.”