Violation of Procurement Rules Resulted from Fast-tracking of OVP’s SAT Units Acquisition

Vice President Sara Duterte, on June 5, 2023, expressed her gratitude to the public and private sector partners of the Office of the Vice President (OVP). However, the Commission on Audit (COA) has pointed out that the OVP did not fully comply with the Government Procurement Reform Act when establishing Satellite Offices (SOs) nationwide.

According to COA’s annual audit report for 2022, the OVP used funds from its officers, which were later reimbursed by the government, to purchase Plant, Property, and Equipment (PPE) and semi-expandable equipment for its SOs, amounting to P668,197. Although the OVP provided a quotation to ensure the lowest price, COA stated that the office still failed to adhere to the transparency goals of Republic Act Number 9184.

COA also noted that the receipts for these purchases were only reported to the Property Unit one to three months after the transaction, raising concerns about accountability. The immediate establishment of SOs without a streamlined process for handling and reporting acquired property led to delays in reporting and recording the purchases.

The OVP explained that they used officers’ personal funds because they wanted to quickly expand the services provided by the OVP to various provinces. However, COA emphasized that controls to prevent loss and ensure proper utilization of government resources should also be considered.

As part of Vice President Sara Duterte’s efforts to extend the reach of the OVP, satellite offices were opened in different regions, including Dagupan, Cebu, Tacloban, Zamboanga, Davao, and Tandag. COA has advised the OVP to refrain from transactions that lead to reimbursement and to carefully plan such programs. In response, the OVP acknowledged that some purchases were made through reimbursement due to time constraints imposed by the law.

Moving forward, the OVP committed to processing all procurement transactions for SOs in accordance with the guidelines of Republic Act Number 9184.

Overall, the COA audit report highlighted the OVP’s non-compliance with procurement regulations and emphasized the need for standardized processes and improved transparency in the procurement process.

Reference

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