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Lagot kayo! COA scores overpriced farm to market road in Abra

Oct 23, 2016 @ 16:15

State auditors bared an overpriced farm-to-market road in the province of Abra that could cheat government of P237,927.16 public funds.

In a 2016 report, the Commission on Audit (COA) said the approved P29,999,900.51 budget for contract of the concreting of Luba-Tubo road was excessive by P266,327.66.

The auditors said a review of the unit cost derivation of cement for the farm to market road projects showed that the pick-up price at Bangued, Abra of one bag of cement was P240 for the five contracts; while for the contract LBP PGA 2014 CW6: Concreting of Luba-Tubo Road, the pick-up price was at P245 also at Bangued, Abra.

The auditors found something wrong here, because the pick-up price of the cement for all six projects should have been the same because these came from the same source.

“Such difference in the unit price of one bag of cement at the same source rendered the ABC of the LBP PGA 2014 CW6: Concreting of Luba-Tubo Road questionable,” the auditors said.

The auditors said using the same agency unit cost of hauling at P32.87, but at P240.00 per bag of cement, the total cost of cement would be approximately P273 (P240 +32.87) per bag, instead of P278 (P245.00+32.87).

Based on the computation, the approved budget contract was excessive by P266,327.67, which was the difference between the cost of P278 per bag and P273 per bag.

The auditors computed that the difference between the adjusted approved budget for contract at P29,733,572.84 and the contract price of P29,971,500, is an overprice of P237,927.16.

The management told the auditors that the variance intended for the hauling was incorporated in the cost at source (pick-up price).

But auditors said following this logic, the overprice would be much higher.

The COA urged the provincial governor Eustaquio Bersamin to collect or deduct the excess price of P237,927.16 from the succeeding claims of the contractor.

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