PH Navy OKd P340M supply deals w/o public bidding – COA

MANILA, Philippines – The Philippine Navy approved supply contracts worth a total of P340.407 million in 2013 without any public bidding, the Commission on Audit found. 

In a report released on Wednesday, January 21, state auditors said the Philippine Navy made the purchases using cash advances through “special disbursing officers.” This practice is prohibited under the Commission on Audit Circular No. 97-002, which requires check payments for all government transactions. 

Republic Act 9184 or the Government Procurement Reform Act requires government transactions to undergo public bidding. 

Although RA 9184 allows exemptions for emergency supplies, COA said the contracts involved were mostly on “common and regularly used items needed in the day to day operation of the agency.” 

Due to the nature of the purchases, COA said the items in questions should have been included in the Philippine Navy’s annual budget.

Among the contacts questioned by COA include:

• P113.85 million for “other supplies and expenses”
• P88.71 million for “other maintenance and operating expenses”
• P30.07 million for office supplies
• P26.9 million for representation expenses
• P15.79 million for training expenses
• P14.8 million for repairs and maintenance – other structures
• P5.35 million for military and police supplies
• P4.92 million for general services
• P4.91 million for repairs and maintenance – land improvement
• P4.49 million for medical, dental and laboratory supplies

By department, the questionable contracts were distributed as follows:

• Philippine Fleet- P92.63 million.
• Philippine Marine Corps – P62.52 million;
• Bonifacio Naval Station – P40 million;
• Naval Combat Engineeering Brigade – P34.76 million;
• Naval Intelligence and Security Force – P33.73 million;
• Headquarters-PN/Support Group – P29.89 million;
• Naval Sea Systems Command – P18.84 million;
• Fleet Marine Ready Force – P10.92 million;
• Naval Logistics Center – P7.4 million;
• Manila Naval Hospital – P7.3 million; and
• Cavite Naval Hospital – P2.42 million

 – Rappler.com