COA orders PhilHealth in NCR to pay P3.6-M rentals for office space in Las Pinas City
The Commission on Audit (COA) has ordered Philippine Health Insurance Corporation’s (PhilHealth) office in the National Capital Region (NCR) to settle its P3.6 million rental fees to Editha G. Building, Inc. (EGBI) for its office space in Las Pinas City.
In granting EGBI’s money claims, the COA ordered PhilHealth’s NCR office to pay the firm P1,117,618.75 for rental of office space from November 2020 to March 2021, and P2,570,523.12 for the monthly rental thereafter from November 2020 to Oct. 15, 2021.
It said the payments should be made “subject to availability of funds and the usual accounting and auditing rules and regulations and submission of the updated Certificate of Non-Payment covering the period of November 2020 to Oct. 15, 2021," it said.
The EGBI was the winner in the bidding for the lease of office space for PhilHealth’s NCR in Las Pinas City.
The contract of lease was signed on Nov. 7, 2014 for a period of five years from Nov. 1, 2014 up to Oct. 31, 2019 at P223,523.75 per month.
Before the expiration of the contract, PhilHealth’s NCR office asked that it be allowed to stay on a month-to-month agreement until a new office is found
The bids and awards committee approved the extension, but not to exceed three months. Another extension was later approved effective February 2020 to April 2020, with the directive that in the case of an extension exceeding six months, the end-user must immediately report to the Government Procurement Policy Board (GPBB).
However, PhilHealth’s NCR office continuously occupied the leased premises without reporting to GPBB. The EGBI did not receive payment from November 2020 to March 2021.
On May 14, 2012, EGBI filed a petition for money claim before the COA. The firm sought payment of P1,117,618.75 for rent from November 2020 to March 2021, as well as payment of P223,523.75 for each month after March 2021.
In a decision, the COA found the petition reasonable and calculated the unpaid rental fee at P2,570,523.12.
The eight-page decision was signed by COA Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.