COA reports

COA: ‘Missing’ supplier got P51 million worth of contracts from CamSur gov’t

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COA: ‘Missing’ supplier got P51 million worth of contracts from CamSur gov’t
The Commission on Audit says it cannot find the supplier at the indicated address, among other issues

The Commission on Audit (COA) raised several red flags regarding a private supplier that won P51.08 million worth of contracts from the Camarines Sur provincial government in 2020.

State auditors said the supplier, which was not named in the audit report, cannot be found in the address it indicated, had small capital compared to the contracts it obtained, and had a business permit and certificate that did not cover the materials it offered to the provincial government.

Based on documents, the company delivered P24.75 million worth of food items, P6.27 million worth of information technology equipment, P6.2 million worth of “donations,” P2.51 million worth of office supplies, and P1.28 million worth of office equipment, among others.

“Since the transactions were not in line with the supplier’s registered industries, there is a possibility that the taxes for such transactions were not properly remitted to the Bureau of Internal Revenue,” COA said.

The company only posted a net income of P2.8 million, with current assets at P5.95 million, indicating that “the revolving capital…was minimal in relation to the amounts of transactions entered into with the provincial government,” according to COA.

State auditors also did not find the company in the address it provided, in an inspection conducted inside the Pasacao Public Market in Camarines Sur. Local sellers and residents interviewed were unaware of the supposed business, too.

“Given the transactions in terms of the volume and amount,” the company should have “a huge storage facility to house all the items for sale,” COA pointed out.

In response to the findings, the Camarines Sur government said its bids and awards committee conducted proper screening of documents submitted by suppliers.

It added that invitations to bid were posted at the provincial capitol and the Philippine Government Electronic Procurement System as required by law. –

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