COA clears Davao City in P6.7M minibus purchase

MANILA, Philippines – The Commission on Audit (COA) cleared the local government of Davao City in relation to the purchase of a P6.785-million 6-wheeler minibus turned into a mobile clinic, which the agency initially found anomalous.

In its latest decision, COA affirmed the 2017 decision of its Davao Regional Office lifting the 2013 notice of disallowance it issued on the minibus purchased for P6.785 million in 2012.

“The audit team leader and the supervising auditor found no other irregularities in the transaction. In fact, based on the records, the contract price of P6,785,000 for the procurement of the subject minibus was based on the public bidding conducted by the city on April 17, 2012,” COA said.

“Thus the lifting of the notice of disallowance is proper,” it added.

The appeal, filed by officials from the Davao City General Services Office, sought to overturn a previous ruling which pointed out several problems with the minibus, such that it was not brand new, already underwent repair, and was non-functional as a mobile clinic. 

Further investigation by state auditors in response to the appeal filed unearthed new evidence against the notice of disallowance.

“The delivered minibus was brand new and Mitsui Trading was the first owner of the minibus which it acquired from the manufacturer, Guangshuo Denway Bus Co. Ltd of China, and the ownership of the vehicle was never transferred to any natural or juridical person under the same was acquired by JAC Inc,” state auditors said in their decision. – Rappler.com