The Commission on Audit (COA) has affirmed the P131.5 million notice of disallowance (ND) issued in 2012 on the purchase in 2009 by the Philippine National Polide (PNP) of 75 units of rubber boats and 93 units of outboard motors.
In a decision, the COA denied the petition for review filed by PCSupt. George Q. Piano, then the director of the Logistics Support Services (LSS) and chairperson of the Inspection and Acceptance Committee (IAC) of the PNP.
Through ND No. 2012-11-069(09) dated Nov. 20, 2012, the COA said that in the purchase of rubber boats and outboard motors for P131.5 million, the PNP failed to conduct public bidding for the items, and instead resorted to direct procurement.
It said the Supply Contracts (SCs) and Purchase Orders (POs) were likewise divided among suppliers due to their incapacity to deliver the entire units, which resulted in the splitting of contracts in violation of the Procurement Law.
Also, the COA said the suppliers incurred delays in the delivery of equipment, and the PNP failed to impose the necessary penalties and lost the amount of P8,506,100 as liquidated damages.
When the ND was issued in 2012, Piano was among the persons held liable for the amount of P87,375,000.
In the petition for review, Piano argued that his involvement in the procurement was limited to his being the director of LSS and chairman of IAC.
He told the COA that he had no hand or participation in the award or recommendation for the award of contracts for the supply and delivery of the rubber boats and outboard motors.
He also pointed out that he acted in the regular performance of his duties, without negligence and without personally benefiting from the transaction.
However, the COA found his petition bereft of merit. "Aside from his failure to verify the reports before he approved the acceptance of deliveries and payment, PCSupt. Piano admitted his own negligence and that of the IAC when he stated that the IAC during his watch as chairperson thereof only acted in accepting the delivery of 75 units of rubber boats after the Inspection Team found the rubber boats to be conforming to the Napolcom (National Police Commission) approved technical specifications," the COA's decision stated.
"This shows that he was remiss in his responsibility to personally supervise the composite team in making sure that the delivered units were compliant with the Napolcom specifications and PNP tests and evaluation," it said.
The decision also pointed out that the fact that Piano did not benefit from the transaction will not absolve him of his personal liability under the disallowance, since there was an expenditure of public funds that was not made in compliance with the law.
The 11-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.