COA wants probe into DepEd Western Visayas’ P68-M supplies purchase

MANILA, Philippines – The Commission on Audit (COA) wants the Office of the Ombudsman to probe alleged irregularities in the purchase of educational materials done by the Department of Education (DepEd) Western Visayas office in 2005.

COA records showed that Book Craft Publishing Company Incorporated delivered educational materials to several divisions of the DepEd’s Western Visayas office, but did not receive payment despite several requests and follow-ups. The type of educational materials delivered was not specified.

Because of this, COA Chairman Michael Aguinaldo, Commissioner Jose Fabia, and Commissioner Roland Pondoc ordered the audit body’s prosecution and litigation office to forward records of the transaction to the Ombudsman.

COA said these records would be used to investigate the procurement and “filing of appropriate charges, if warranted.”

No payment received: According to COA’s records, Book Craft Publishing claimed that the DepEd must pay P67.902 million for supplies delivered to DepEd offices in Antique, Capiz, Roxas City, Iloilo City, and Passi City.

Below is the breakdown:

• DepEd Antique – P31.875 million
• DepEd Capiz – P21.331 million
• DepEd Roxas City – P5.079 million
• DepEd Iloilo City – P5 million
• DepEd Passi City – P4.617 million

Book Craft Publishing said it sent requests for payment to then-president Gloria Macapagal Arroyo, then-education secretary Jesli Lapus, and DepEd Western Visayas regional directors Victoriano Tirol and Mildred Garay. All did not respond.

Later in 2012, DepEd Undersecretary for Legal and Legislative Affairs Alberto Muyot said the supplies delivered by Book Craft Publishing did not undergo public bidding, and were also not part of the department’s annual procurement plans. This, he said, meant the supplier could not be paid.

A year later, then-education secretary Armin Luistro also reiterated that the DepEd could not pay Book Craft Publishing because the purchase was not according to annual procurement plans and no certificate of availability of funds was issued.

Responding to this, Book Craft Publishing invoked the principle of quantum meruit, which means it deserves payment based on the value of goods that had been delivered.

Asked by COA to present records of production and delivery costs, the company only gave the unit price of the supplies, margin of profit, and quantity delivered. It also submitted the declared value of the supplies and shipping fees.

Without documentation of the production cost, COA said only the declared value of the goods amounting to P2.074 million and shipping fees of P388,617.50 could be claimed.

COA said Book Craft Publishing should seek the rest of the amount from DepEd officials who approved the transaction in 2005, as provided under Section 87 of Presidential Decree No. 1455.

Under Section 87, if a procurement did not follow requirements of the law, it would be considered a private transaction and public officials involved would be held liable for any damage. – Rappler.com