The Commission on Audit (COA) has flagged the Bureau of Corrections (BuCor) over its "irregular" P36.869 million food subsistence for persons deprived of liberty (PDLs) in its Davao Prison and Penal Farm (DPPF) in 2022.
In its Annual Audit Report (AAR), the COA cited its Circular No. 2012-003, which defined what irregular, unnecessary, excessive, extravagant, and unconscionable (IUEEU) expenditures are.
COA pointed out that irregular expenditures are made when "there is no observance of an established pattern, course, and mode of action, behavior, or conduct in the incurrence of an irregular expenditure."
It said that when its audit team reviewed the January to March 2022 food subsistence transactions, it discovered that BuCor paid Aurora F. Sumulong (AFS) Eatery the amounts of P12,716,756.72, P11,618,626.28, and P12,533,391.78.
"The disbursements were made in the absence of any bidding process or through alternative methods of procurement," COA said.
"The only basis was the Notice of Extension of Contract dated Dec. 20, 2021 addressed to AFS Eatery notifying them that the 2021 FSA is extended for the period of Jan. 1 to March 31, 2022. It was signed by Undersecretary Gerald Q. Bantag, Director General of the BuCor being then the head of procuring entity (HOPE) of the agency since procurement is centralized."
But COA said the extension of contract indicates irregularity since it did not adhere to established rules, regulations, and practices on public bidding or alternative methods of procurement.
It said: "Therefore, it is clear that the extension of contract is irregular because it is without legal basis due to absence of any authority to do so. The apparent disregard of the provisions of COA Circular No. 2012-003, particularly in the payment of expenses in the absence of legal basis or authority, casts doubt as to the validity and propriety of expenditures which can be subject to audit disallowances."
COA then advised BuCor management to stop extending contracts in the future, especially when done without legal basis.
Still, COA asked BuCor to submit its authority or legal basis for the extension of the food contract with AFS Eatery.