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COA grants P7.91-M money claim vs DBM for security services

Published Oct 30, 2023 06:23 am

The Commission on Audit (COA) has granted the money claim of a security services company for P7.91 million against the Department of Budget and Management (DBM) for services rendered from Jan. 23 to July 16, 2020.

Granted was the claim filed by 168 Security, Inc. However, instead of P7,935,324.42, granted by COA was a total of P7,914,893.21.

Represented by its Marketing Head Catherine T. Marquez, 168 Security told COA that the firm was hired by DBM through public bidding in 2018 to provide security manpower services.

Both parties signed a contract for a period of 18 months form July 11, 2018 to Jan. 10, 2020 for P25.6 million.

When the contract expired, DBM did not renew or formally seek the extension of the firm's services. However, 168 Security still continued to render services within the DBM's premises. Despite efforts of the DBM to initiate the procurement process for a new contract, the Covid-19 pandemic took place and the DBM was constrained to suspend its procurement activities.

168 Security then filed a petition, and the DBM answered that the timely action on the renewal of security services was "an honest mistake and oversight on its part."

The COA decided to partially grant 168 Security's petition "in the interest of substantial justice and equity."

Citing the principle of quantum meruit or "the amount one deserves," the COA said that the measure of recovery should relate to the reasonable value of the services performed in order to avoid unjust enrichment.

"Thus, this Commission partially grants the money claim of 168 Security on the basis of quantum meruit in the amount computed and verified by the audit team leader at P7,914,893.21," it said.

Related Tags

Commission on Audit (COA) Money claim Commission on Audit Department of Budget and Management DBM
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