Commission on Audit

COA orders DSWD-NCR to pay P20.5-M claim of furniture supplier

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COA orders DSWD-NCR to pay P20.5-M claim of furniture supplier

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


The Commission on Audit en banc says Ergo Contracts Philippines Incorporated provided sufficient proof to support its money claim

MANILA, Philippines – The Commission on Audit (COA) has ordered the Department of Social Welfare and Development-National Capital Region (DSWD-NCR) to pay P20.5 million to Ergo Contracts Philippines Incorporated (ECPI) for unpaid deliveries of furniture and fixtures.

The COA en banc cited the claimant’s sufficient proof, which was confirmed by the DSWD NCR chief, in issuing the decision.

“In view of the foregoing, this Commission finds it proper to grant the present petition. The money claim falls within the ambit of liquidated claims,” the COA en banc said.

In its petition, Ergo Contracts won the bid to deliver furniture and fixtures to 11 resident care facilities (RCFs) in Metro Manila. It was given 30 days to complete the delivery, based on a Notice to Proceed issued on December 11, 2019.

The procuring agency granted requests for extension due to various reasons, such as port congestion in view of the Christmas season in 2019,  and the start of the COVID-19 pandemic.

Because of this, the final delivery was only accomplished on March 24, 2022. 

The COA found the grant of numerous extensions “irregular” but held that Ergo Contracts should not be held accountable for the delay in delivery.

“This Commission also considers the fact that the delivery period coincided with the onset of the COVID-19 Pandemic wherein the government implemented various levels and areas of community quarantines,” it said.

COA “partly granted” the petition for money claim of Ergo Contracts “in in the reduced amount of P20,520,638.92, less mandatory deductions.”

The original contract was worth over P23 million. –

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