The Commission on Audit (COA) has ordered provincial officials of Misamis Oriental to stop deducting from its disaster funds payments for monthly salaries and extra services of job order employees.
COA, in its 2019 annual audit report for the province, also called for the deduction in the cost of various medical and laboratory supplies the liquidated damages for the delayed delivery of some P3.56 million of the supplies last year.
The audit agency submitted its annual audit report to Gov. Yevgeny Vincente Emano, through COA Regional Director Celso L. Vocal.
A post audit conducted on the disbursements from the Local Disaster Risk Reduction and Management Fund in 2019 showed that the provincial government spent some P1.63 million for payment of salaries and allowances of employees.
The said payments were charged against the Local Disaster Risk and Reduction Management Fund which was inconsistent with the provisions of Republic Act 10121 governing the utilization of the fund.
“The charging of salaries and extra services rendered of the Job Order Employees to the Calamity Fund was unlawful and have violated the guidelines provided (for) under Republic Act 10121 or the Philippine Disaster Risk Reduction and Management Act of 2010,” the audit body added.
COA said the provincial government should discontinue such practice.
Examining Misamis Oriental’s compliance to Republic Act 9184 or the Government Procurement Act, state auditors noted that some P3.56 million worth of drugs, medicines, and laboratory supplies were not delivered by suppliers on the dates specified in the contract.
Auditors said the delayed delivery should have entitled the province deduction on the contract price as provided for under RA 9184.
“However, the team’s actual inspection and based on the actual delivery receipts and inventory reports of the provincial hospitals, data showed that the actual deliveries were made beyond the specified dates in the contract,” COA stated.
To address the issue, COA told the provincial officials to “calculate and deduct” from the suppliers claim of payment the amount of liquidated damages as provided for under RA 9184.
COA also recommended the suspension of suppliers who violated the terms of their contracts by delaying the delivery of the supplies purchased by the province.