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COA questions P189K medicine purchase without public bidding in Rizal

Sep 29, 2016 @ 20:50

State auditors questioned the purchase of medicine and dental supplies worth P189,781 in the municipality of Pililla in Rizal without the conduct of a public bidding.

In a 2016 report, the Commission on Audit (COA) said the transaction violated Section 10 of the implementing rules and regulations of the Government Procurement Reform Act, which provides that all procurement should be done through public bidding.

Auditors said public bidding aims to promote transparency, accountability, equity, efficiency and economy, as well as to protect public interest by getting the best possible advantageous price through open competition.

Another purpose of public bidding is to avoid or preclude suspicion of favoritism and anomalies in the execution and award of public contracts, the auditors said.

The municipal government did not indicate the alternative method of procurement – whether shopping, small value procurement or other modes – in any document supporting the claim, although a canvass was made from three suppliers.

There was also no Bids and Awards Committee (BAC) Resolution recommending to the Mayor the use of alternative method of procurement. The BAC members and the Mayor merely signed the abstract of canvass, the auditors said.

The auditors said no document was submitted to justify a simple canvass of prices instead of public bidding.

Auditors also said the amount exceeded the amount allowed for shopping or small value procurement.

“As such, it was evident that the Municipality did not take advantage of the open market competition to ensure that the most advantageous price for the government is obtained,” the auditors said.

The auditors were told the municipality did not expect the continuous implementation of various health programs, medical missions and related health activities that compelled them to deviate from the procurement rules.

The COA urged the municipal officials to explain why there was no public bidding in the procurement for medicine to ensure the best possible price for the municipality.

The COA reminded municipal mayor Leandro Masikip Sr. that the regulations for procurement are not just an audit requirement but a requirement of the law.

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