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Manila Bulletin devider Philippines devider National devider COA denies P78.9M payment for 2 mobile X-ray units used in 2015 APEC summit

COA denies P78.9M payment for 2 mobile X-ray units used in 2015 APEC summit

Published Apr 26, 2024 03:21 am

The Commission on Audit (COA) has dismissed the P78.956 million payment claimed by Adlib International Sales, Inc. (AISI) from the Department of Budget and Management (DBM)-Procurement Service and the Presidential Security Group (PSG) for the supply and delivery of two mobile X-ray units in 2015.

The procurement of the mobile X-ray units was for use by the PSG during the Asia Pacific Economic Cooperation (APEC) Summit in Manila on Nov. 17 to 20, 2015. It was awarded to AISI which submitted a proposed bid of P46,445,000 per unit or a total of P92,890,000.

AISI delivered two mobile X-ray units set up on Mercedes Benz Z Backscatter vans on Nov. 12, 2015. However, PS-DBM did not accept the delivered items because the motor vehicle was not brand new and one set of standard tools was lacking.

The Delivery Rejection Notice (DRN) also indicated that the subject items must be withdrawn 10 days from receipt of Notice of Rejected Goods; otherwise, the items will be forfeited in favor of the government if remained unclaimed within one month.

Despite the issuance of the DRN, the mobile X-ray units were still mobilized and utilized by the PSG during the APEC Summit. The PSG requested from AISI that it be allowed to use the units because of its dire need during the summit, with the understanding that the DRN will still subsist. AISI verbally approved the request and moved for the reconsideration of the DRN.

AISI and the government agencies went back and forth regarding the issue, with AISI eventually filing a petition for money claim before the COA seeking payment for the remaining contract price worth P78,956,500.

However, the money claim was denied by COA with a ruling that it lacked authority to decide on the petition.

"We hold true the observation of the PSG, through the OSG (Office of the Solicitor General), that the ultimate facts and averments raised by AISI in the petition for money claim were directed to nullify the acts, proceedings, and decisions of PS-DBM, which led to the non-acceptance of the mobile X-rays and the termination of the contract. However, the resolution of these matters is beyond this Commission's power and authority to adjudicate," COA said in its decision.

The 12-page ruling was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.

Related Tags

PSG x-ray Department of Budget Management Procurement Service DBM-PS APEC APEC SUMMIT Presidential Security Group Commission on Audit (COA) Commission on Audit X-ray machine gamaliel cordoba DBM
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