The Commission on Audit (COA) has directed the Department of Agriculture (DA) to pay P64.19 million to Durabuilt Motors, Inc. (DMI) for the 39 units of motor vehicles which were purchased in 2023.

DMI, represented by its General Manager Franklin U. Pardo, delivered 30 units of 4x4 pick-ups with fiberglass canopy and nine units of 12-seater passenger vans to DA’s Philippine Rural Development Project-National Project Coordinating Office (DA-PRDP-NPCO) on Dec. 28, 2023.

However, despite repeated demands for payment from DA-PRDP-NPCO – the last demand was on Aug. 9, 2024 --- DMI still was not paid. The firm then filed a petition for money claim before the COA and argued that it should be paid the contract price together with other damages.

For its part, DA-PRDP-NPCO said that despite physical delivery of the motor vehicles, the last official receipt and certificate of registration (OR/CR) of the vehicles were only released by the Land Transportation Office (LTO) on March 22, 2024 and delivered to DA-PRDP-NPCO weeks after. This is why payment to DMI was not facilitated, it said.

The COA granted DMI's petition with a ruling that "public interest and equity dictate that the contractor should be compensated for services rendered and work done."

While the audit team found lapses in the conduct of public bidding, the COA said that it is not sufficient ground to invalidate the entire bidding process.

However, the COA denied DMI's claim for interest, moral and exemplary damages, attorney's fees, and other costs amounting to P8,603,995.32 as these are "beyond the jurisdiction of this Commission to award."

The seven-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Mario G. Lipana and Douglas M.N. Mallillin.