Commission on Audit

COA clears ex-Coast Guard officer from P18M overpriced ship parts mess

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COA clears ex-Coast Guard officer from P18M overpriced ship parts mess

COA. The Commission on Audit in Commonwealth Avenue, Quezon City, on October 2, 2018.


The Commission on Audit says it would be the 'height of injustice' if former Lieutenant Commander Eric Ferranculo was held liable for an irregular deal he did not partake in

MANILA, Philippines – The Commission on Audit (COA) has cleared former Philippine Coast Guard (PCG) Lieutenant Commander Eric Ferranculo of liabilities over the P18-million overpriced procurement of equipment and shipboard spare parts in 2007.

The Supreme Court already ruled in finality in 2017, holding several PCG officials, including Ferranculo, liable, but the COA en banc said it found compelling grounds to grant Ferranculo’s relief from judgement petition.

“In the interest of substantial justice and due to circumstances that permit Relaxation of the doctrine of immutability of judgment, this Commission shall take cognizance of his appeal, in accordance with the ruling of the SC in the case of Estalilla vs. COA on the exceptions to the rule on immutability of judgments,” the COA said.

Ferranculo said he was aware of the COA’s disallowance, but noted that he was included by mistake since he was never part of the procurement process, nor attended meetings for the purchases. He also said he only discovered later that his concerns were not submitted to the COA.

COA’s own Prosecution and Litigation Office noted that there was no evidence that  Ferranculo was a member of the Technical Working Group for the spare parts procurement. He was a member of other committees, but these were not covered by the disallowance.

COA said that it would be “the height of injustice to hold him liable for an irregular transaction that he did not partake in.”

“In view of the foregoing, and in the highest interest of justice and equity, this Commission finds that former LCDR [Lieutenant Commander] Ferranculo should be excluded from the persons liable for the disallowance,” it said. –

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