COA urges suing PCOO officials involved in ASEAN Summit irregularities

The COA believed that the PCOO, headed by Secretary Martin Andanar, could have “taken advantage of acquiring IT equipment, if not for their own use, for the use of other agencies who are much in need of them.” (PCOO File photo)

Officials of the Presidential Communications Operations Office (PCOO) who are allegedly involved in the anomalous disbursement of P38.8 million used for the Association of Southeast Asian Nations (ASEAN) Summit in 2017 must be slapped with charges, according to the Commission on Audit (COA).

“We recommended that management file the appropriate charges against any erring officials, as prescribed under Section 65.1 of the Revised Implementing Rules of Republic Act No. 9184, for taking action that favored a particular supplier/s,” the COA said.

In its just-released annual audit report, the COA stated that out of the audited P219.24 million ASEAN funds, 17.70 percent or P38.8 million was found “deficient.” The state auditors learned that the rental of information technology (IT) equipment for P4,039,140 million was more expensive than the selling price by P964,872.

The government, according to the COA, could have saved P964,872 if the IT equipment used during the summit was bought at total cost of P3,074,286.

“Additional savings would have been secured, considering that no further acquisition by the agency of similar equipment is necessary, if same had already been procured,” it said.

The COA believed that the PCOO, headed by Secretary Martin Andanar, could have “taken advantage of acquiring IT equipment, if not for their own use, for the use of other agencies who are much in need of them.”

Other services, van rentals contracts split

Meanwhile, the COA also revealed that purchase orders and payments amounting to P27.5 million and P7.26 million for various goods and services and rental of passengers, respectively, were split.

“Resorting to splitting deprived the agency of the opportunity to take advantage of possible bulk discounts or lowest responsive offer if the procurements were done through public bidding,” the COA wrote.

The procurement of delicacy bags, handmade soaps, medical kits, umbrellas, shirts, and ASEAN jackets amounting to P14,587,182 was split in to 10 purchase orders and were distributed among four suppliers.

Printed materials worth P8,510,700 were dished out to 12 purchase orders and were awarded to two suppliers.

For the internet access, a total of P4,405, 653, was divided into seven purchase orders and were given between two suppliers.

Moreover, the P7.26 worth of van rental fee, was split into eight purchase orders and were distributed to only one supplier.

According to the COA, Andanar already ordered an investigation to determine whether or not the Republic Act (RA) 9184, also known as Government Procurement Act, was violated in the procurement of the IT equipment and passenger vans.

The PCOO then insisted that there is no splitting of contracts that happened, stressing that each purchase was intended to address separate transaction needs; for specific and independent ASEAN-related events; held in different locations; and requested on separate dates.

It added that these purchases were “processed separately and independently” in accordance with RA 9184.

Responding to the recommendation of the COA, PCOO Undersecretary for Legal Affairs Marvin Gatpayat on Friday assured the public that the agency will undertake all necessary actions and reforms to uphold the integrity of the PCOO.