Commission on Audit

EMB questioned for procuring defective waste management equipment

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EMB questioned for procuring defective waste management equipment
The COA says the Environment Management Bureau is having a hard time running after suppliers since payment was already made

MANILA, Philippines – The Commission on Audit (COA) has questioned the Environment Management Bureau’s (EMB) over its payment for defective waste management equipment worth P936 million. 

The hardware cited in the audit are biodegradable waste shredders, composters, and recycling equipment. However, upon checking, many of these products were found to be defective. 

A total of 191 out of 285 local government units (LGUs) responded when the audit team reached out to confirm the status of the equipment. Eighty LGUs reported that both composter and shredder were not operational. 

Seventy-four LGUs reported that both shredder and composter were operational, 16 said only the shredder was working. Four LGUs said only the composter was working. 

Fifteen LGUs said the plastic recycling equipment they got were not working, and only two were operational. 

Aside from defective equipment, the audit team found that the suppliers did not meet the technical specifications. They did not test the equipment upon delivery. In some municipalities, suppliers did not demonstrate nor provide an operation manual.  

Despite these lapses, the EMB released payment and a director signed an undated certificate of acceptance. The same director attested that all equipment were installed, tested, and commissioned after inspection. 

Because full payment was already released, auditors said the EMB is already having a difficult time running after the suppliers to fulfill all requirements in the contract. 

The EMB initially paid P49.904 million to supplier Suki Trading Corporation and Boston Homes Incorporated on September 29, 2021. This was followed by 12 checks amounting to P753.356 million given from September to December.

These payments were for 48 plastic recycling equipment sets at P6.505 million each, and 490 sets of waste shredders and composters amounting to P998,000 each.

The EMB paid P134.825 million to C & G Environmental Management Corporation for 21 sets of plastic recycling equipment at P6.42 million each.

The EMB is mandated to implement Republic Act 9003 or the Ecological Solid Waste Management Act which aims to adopt a systematic solid waste management system and protect public health. –

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