COA blames DENR for delayed delivery of P1.4B supplies, equipment ordered from 2 gov’t procurement agencies

Published October 23, 2020, 8:23 PM

by Ben Rosario

Two government procurement agencies supposedly tasked to speed up and ensure graft-free purchase transactions in government have caused the delay in the delivery of over P1.4 billion supplies and equipment ordered by the Department of Environment and Natural Resources.

However, instead of blaming the Procurement Service under the Department of Budget and Management and the Philippine Trading Corporation for its inability to deliver on time the DENR order, the Commission on Audit scolded the department’s “procurement services and other offices for failing to follow up their orders.

In several COA audit reports, the PS and PITC are always mentioned in the adverse audit findings for their inability to deliver on time the orders of various agencies that have advanced billions of pesos to cover the cost of the purchases made through the two agencies.

“Considering the voluminous orders at the PS-DBM, it is but reasonable and proper for the DENR procurement service units to monitor the delivery of the items ordered from the PS-DBM,” said COA in the recently-released 2019 annual audit report for DENR.

The audit agency added: “Constant follow-up in writing and through other modes would remind the PS-DBM of their undelivered orders.”

The PS-DBM received from DENR and its attached agencies some P1.26 billion to purchase for the department goods and equipment needed for its operation. 

On the other hand, the PITC was paid P146.182 million in advance payment for DENR orders.

However, deliveries were delayed, COA disclosed. Auditors said 99.28 percent of the DENR orders from PITC were delayed for over one year.

In the audit report, COA described the PS as a “trusted and preferred procurement partner of the public sector.  On the other hand, the audit agency said the PITC is tasked to handle orders sourced from international suppliers.

According to the audit report the PITC was tasked to purchase for the DENR Central office four heavy equipment, 16 trash boards, two units water quality equipment, and various technical equipment.  However, no deliveries were made for more than five years now.

“If constant follow-up were made by the procurement service of the DENR, it would not take too long for the PITC to procure such equipment and trash boats,” said state auditors.

COA advised DENR to inquire from PITC and PS the status of their orders and request immediate deliveries.  However, the DENR must demand return of its advance payment if ‘delivery can no longer be made possible.”

In the same audit report, auditors decried the failure of the DENR to generate income from confiscated forest products, furniture and other products, saying that government should have earned P37.306 million had the seized materials been disposed of.

Auditors lamented that the confiscated items have already “deteriorated and some have disappeared in the warehouses where they were kept.

“Lapses in monitoring and collection of rental from foreshore property/cottages resulted in the accumulation of uncollected revenue estimated at P22.269 million which could have been used to finance other programs/projects of the agency,” the audit examiners added.