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Manila Bulletin devider Philippines devider National devider COA spares firm from P5M liability in Palawan road projects

COA spares firm from P5M liability in Palawan road projects

Published Nov 3, 2023 03:13 am

The Commission on Audit (COA) has granted the appeal of D.C. Sandil Construction and Realty Development, Inc. (DCSCRDI) to exclude the firm from liability in the P5.14 million notices of disallowance (NDs) in the rehabilitation of the San Rafael-New Busuanga Section and Patache-Macalachao Road in Busuanga, Palawan.

DCSCRDI received the NDs on Feb. 15, 2013 and filed the Appeal Memorandum before the COA on July 17, 2013. When a Special Audit Team (SAT) was created by COA, it was found that the projects involved 217 contracts awarded to various contractors in the total amount of P1,713,572,266.74.

COA also found that there was an overpayment of P2,372,000 and P1,116,000 for the projects. DCSCRDI was one of firms held liable.

In its appeal, DCSCRDI told COA that its contract costs for the projects were reasonable, and it complied with the submission of the approved original and as-built plans, shop drawing and its details, breakdowns of the unit cost and quantity, and other things.

It also told COA that there was a violation of due process because the conclusion made in the Inspection Reports was reached without the required substantial evidence and outside the prescribed audit methods and procedure.

In resolving the issue, COA found DCSCRDI's appeal "meritorious" as it explained that the NDs were issued against the companies for their failure to post in Philippine Government Electronic Procurement System (PhilGEPS) the invitiation and eligibility to bid (IAEBs) for the projects.

COA said that the responsibility did not fall on the part of the companies that were held liable.

"DCSCRDI had no participation or responsibility in posting or the failure to post the IAEBs in the PhilGEPS, the same belonging to the procuring entity or the bids and awards committee (BAC), in particular. It was only determined to be liable for being the payee of the alleged undelivered projects or deficiencies, in the total amount of P3,488,000," COA said in its decision.

It said the alleged undelivered projects or deficiencies were later confirmed to be "existing and in conformity with the specified dimensions indicated in the approved original and as-build plans."

"Subsequently, with the exclusion of DCSCRDI from liability by extending to it the benefit of quantum meruit (the amount one deserves) for its project accomplishments, the Commission finds it appropriate to exclude also the liabilities of the other persons held liable under the NDs," it also said.

Related Tags

SAN RAFAEL notice of disallowance Commission on Audit (COA) appeal Commission on Audit
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