By Charmaine A. Tadalan
THE Commission on Audit (CoA) flagged the Presidential Communications Operations Office (PCOO) over irregularities in the disbursement of funds for the ASEAN (Association of Southeast Asian Nations) Summit in 2017.
The auditing body, in its 2017 report, found the disbursement of P38.8 million from the P219.2-million ASEAN fund “deficient” due to the rental of IT equipment at rates higher than their actual selling price and due to the “splitting” of payments for various goods and services and van rentals.
“The government could have saved a total of P964,872.00 if the IT Equipment used during the ASEAN 2017 event were purchased at a total cost of P3,074,268.00 instead of rent/lease of P4,039,140.00,” the CoA reported.
Upon verification of the Purchase Orders (POs), the auditing body found that IT equipment, such as laptops, desktops, cameras and camera lenses, rented or leased for two to five months cost a total of P4.04 million.
The CoA noted that purchasing said IT equipment could have saved the PCOO P964,872.00.
Moreover, POs and payments revealed the agency had split purchasing and leasing of various goods and services as well as van rentals at P27.5 million and 7.26 million, respectively.
Of the P27.5 million, P14.59 million were used to procure delicacy bags, handmade soaps, medical kits, umbrellas, shirts, and ASEAN jackets that were split into 19 purchase orders (POs). It was noted that the POs did not exceed the P1-million threshold. Also part of the P27.5-million purchases were printed materials (P8.51 million), split into 12 POs, and WiFi access (P4.41 million), split into seven POs.
The agency had also rented/leased VIP passenger vans for activities in Metro Manila, Tagaytay, and Clark. The CoA review showed a rental fee of P7.26 million split into eight POs awarded to only one supplier.
Splitting, according to CoA, is considered an irregular expenditure. It was also noted that splitting deprives the agency of the opportunity to take advantage of possible bulk discounts or the lowest responsive offer if procurement went through public bidding.
PCOO Undersecretary Marvin R. Gatpayat said in a statement Friday: “As early as the third week of January 2018, we received reports that there might have been some indiscretions in the conduct of procurement in the ASEAN event. An office order of the PCOO was thus issued on 12 February 2018 reconstituting the PCOO-BAC (Bids and Awards Committee) and PCOO-BAC II, effectively replacing their respective Chairpersons.”
He added: “On March 2018, the PCOO received Audit Observation Memorandums (AGMs) on the aforementioned procurement irregularities. As ordered by the Secretary, the PCOO Legal Department is conducting an investigation on the matter. Show-cause memorandums have been issued and an investigation report is forthcoming.”
The undersecretary also assured the PCOO will ensure strict compliance with the Government Procurement Reform Act.

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