COA flags COVID-19 response expenditures of OSG
The Commission on Audit has red flagged transactions made by the Office of Solicitor General in its 2019 coronavirus disease (COVID-19) response.
COA disclosed in its 2020 annual audit report for the OSG that the government’s legal counsel has procured P1.49 million worth of medical supplies during the year. It raised two issues on the COVID-19 transactions.
“The required publication of documents relative to procurement of medical supplies totaling P1,492,988.01 in the Government Procurement Policy Board (GPPB) online portal, website of the procuring entity or at any conspicuous place pursuant to Section 4 of Republic Act No. 11494 or the Bayanihan to Heal as One Act was not complied with,” COA Director Michael Bacani wrote in the report sent to Solicitor General Jose Calida.
The COA also observed: “Likewise, claims for said procurement were not supported with required documents contrary to Section 4 (6) of Presidential Decree No. 1445.”
The COVID-19 response programs of the OSG included the purchase of various medical supplies from the Natural Medical Aesthetics Management Co. Inc. and the conduct of RT-PCR swab test on OSG employees.
OSG spent P967,698 for the medical supplies and P525,290.30 for the swab tests. In response to the audit observation, the OSG wrote on April 29, 2021 that it has already complied with the publication requirement provided under the Bayanihan law.
However, the audit team still requested for the submission of a certification stating that the OSG had indeed “exerted all efforts to secure the most advantageous price to the government based on existing price data of the agency.”
In the same audit report, state auditors noted that the OSG had failed to impose and collect from an information and communications technology supplier “post-warranty” security in connection with the purchase of P9,346,600 worth of ICT equipment.
As a result, the OSG had failed to guarantee that the ICT supplier will perform its responsibilities for post-warranty security provided under Republic Act 9184 or the Government Procurement Act.
“Verily, manufacturing defects found after the acceptance of goods would be guaranteed by the warranty security if it is imposed or collected,” said COA.