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Manila Bulletin devider Philippines devider National devider COA orders PhilHealth to pay P5.8 M for services rendered by a security agency

COA orders PhilHealth to pay P5.8 M for services rendered by a security agency

Published Feb 25, 2026 02:51 pm
The Commission on Audit (COA) has granted the P5.8 million claimed by the Catalina Security Agency (CSA) against the Philippine Health Insurance Corporation (PhilHealth) for payment of security services rendered in 2023.
PhilHealth and CSA entered into a Contract for the Procurement of Security Services for the former’s central office for three years on March 18, 2019. When the original contract expired on March 31, 2022, PhilHealth extended the contract for one year until March 21, 2023.
However, on July 18, 2023, PhilHealth told CSA that it was no longer extending the contract since contract extensions for more than one year are not allowed under the Revised Guidelines on the Extension of Contracts for General Support Services.
On July 31, 2023, the CSA pulled out its security personnel and equipment and submitted billings from April to July 2023 amounting to P5,865,823.56.
PhilHealth did not process the payment for alleged lack of legal and contractual bases. It alleged that the services rendered by CSA during the period were not covered by any contract.
CSA later filed a petition for money claim before the COA as it pointed out that the services it rendered were vital to PhilHealth’s business. It stressed that while the contract expired on March 31, 2022, it was PhilHealth which requested the CSA to extend its services.
The COA found the petition meritorious and ordered PhilHealth to pay P5,865,523.23 to CSA for security services rendered.
It said that while the extension was not supported by a valid contract, CSA still deserves to be compensated for the security services it provided PhilHealth on the principle of quantum meruit (as much as one deserves).
"Equity dictates that CSA should be compensated for what it has rendered. To deny the payment of the rendered security services to PhilHealth would be to allow PhilHealth to unjustly enrich itself at the expense of CSA," the COA said.
It also said: "It must be emphasized that from April to July 2023, PhilHealth did not question the authority of the security guards who performed the security services. As it is, despite the absence of the contract for April 1 to July 2023, PhilHealth undoubtedly benefited from the services rendered by the claimant."
The 11-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.
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