The Commission on Audit has called out government printing agency APO Production Unit Inc. for spending P222.433 million for the lease of various printing equipment from private printers, saying that this constitutes sub-contracting which is contrary to law.
(MANILA BULLETIN FILE PHOTO)
COA said in its 2019 Annual Audit Report for APO that sub-contracting is not allowed under the General Provisions of General Appropriations Act for Fiscal Year 2019. This also violates Section 4.6 of the Government Procurement Policy Board Resolution No. 05-2010.
In the audit report submitted by COA Director Ma. Lydia de Joya to the APO Board of Trustees, the audit agency noted that the State-run printing office has been entering into lease agreements for the lease of various printing machines since 2015.
“There were cases wherein the printing of the projects accepted by APO could be considered as sub-contracting instead of the lease agreement stated in the contracts entered into by and between APO and the different/lessors/private printers,” COA said.
Among these are the lease of various printing and finishing equipment with technical and operational system for printing services and the procurement of finishing services of various accountable forms.
To support its claim, COA disclosed that the presence of APO printing machine operators in the premises of the lessors constitute a mere 14 percent of the total hours needed to complete a printing job.
Auditors said their observations have raised in the previous year but APO continued with the practice of procuring materials and leasing of printing equipment to the same lessor. This is ‘tantamount to sub-contracting” they said.
In the same audit report, COA asked the APO board chairman and two other officials to refund to government P7.08 million total compensation they received from 2017 to 2019 without presidential approval.
COA said the chairman should refund P2,969,495.67 received during the year. Also asked to repay government the compensation they received were the executive vice president and general manager, amounting to P1.97 million and P2,128,038.56, respectively.
The refund should be made if APO fails to get a “post facto” approval from the Office of the President for the grant of salaries, allowances, and other benefits given to APO officials.
“Stop paying monthly, salaries, allowances, and other benefits to the Chairman and three members of the BoT serving as officers: President, Executive Vice President, and General Manager of APO pursuant to Executive Order No. 24, otherwise, seek approval from the Office of the President,” COA said.