Despite the absence of documentary requirements, the Public Attorney’s Office (PAO) entered into 44 contracts of lease worth P10,847,260.01 in 2019, the Commission on Audit (COA) has reported.
COA revealed in the 2019 annual audit report for PAO that the agency also violated Presidential Decree No. 1445 when it released P5,299,629.55 in December 2019 as payment for supplies that were delivered and accepted a month later.
COA said documents for five new contracts of lease and 39 renewals entered into by PAO with various lessors of offices were not supported by pertinent documents.
Among the missing documents were invitation to bid for at least three prospective lessors and their quotations, notice of award and other similar papers were not submitted to COA during audit.
“In renewing its contracts, the Agency simply entered into a new contract with the private lessor without conducting the cost benefit/market analysis required in the existing regulation,” the state audit agency noted.
According to the audit report, PAO also failed to submit 11 multi-year contract agreements in which it paid P3,147,840 in lease.
The PAO management, headed by Chief Public Attorney Persida V. Rueda-Acosta, said it will submit all the required documents.
In the same report, the COA audit team headed by Director Irma Besas asked the PAO to submit an explanation that will justify the advance payment for supplies ordered in 2019.
“The payments made in CY 2019 for supplies and materials delivered only in January, 2020 partakes the nature of advance payment which is contrary to Sections 58, 61 and 88 (l) of PD 1445,” COA said.
PAO denied any violation of the law, saying that the checks it prepared for the supplies were not released until the deliveries were made.