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Manila Bulletin devider Philippines devider National devider COA orders SBMA to pay Philand Security P8.3-M for services rendered

COA orders SBMA to pay Philand Security P8.3-M for services rendered

Published Mar 19, 2026 12:41 pm
The Commission on Audit (COA) has directed the Subic Bay Metropolitan Authority (SBMA) to pay P8.3 million to Philand Security Agency, Inc. (Philand) for the additional number of days rendered by the firm’s security guards since 2019.
The SBMA had an approved budget for security services of P56,328,368.58. When it posted an invitation to bid on Aug. 31, 2018 for a two-year contract, Philand was the sole bidder with a bid price of P54,353,803.22.
A notice of award was issued to Philand on Dec. 7, 2018, and it executed Contract Agreement No. 180976 for a contract price of P54,353,803.22 from Feb. 1, 2019 to Jan. 31, 2021. Philand then deployed a total of 125 security guards on a 24/7 basis for 365 days a year.
On Oct. 8, 2019, Philand requested an amendment on the contract, and sought back payments from the commencement of the security guards' engagement.
Philand alleged that underpayments arose from the use of 313 days per year instead of the actual 365 days per year.
It then sought reimbursement for the salaries it had paid in advance to the security guards who rendered services on Sundays or supposedly rest days amounting to P2,655,981.91. It also sought a P20 per day increase in the daily wage.
Philand then made a final demand for the unpaid billings amounting to P8,349,995.66 on Sept. 3, 2021. It was denied by the SBMA.
The firm then filed the money claim before the COA plus interest, exemplary damages of P300,000 and attorney's fees of P300,000.
Despite objections raised by the SBMA, the COA partially granted the money claim due to quantum meruit or "as much as one deserves."
The COA said: "Applying the foregoing, it cannot be denied that Philand deployed a total of 125 security guards to the subject area on a 24/7 basis, or 365 days a year. It has provided services to SBMA and should be compensated for the salaries of the security personnel it paid for 52 unpaid days covering the period from Feb. 1, 2019 to Jan. 31, 2021."
However, the COA has dismissed for lack of merit the claims of Philand for exemplary damages and attorney's fees.
The 10-page resolution was signed by Chairperson Gamaliel A. Cordoba and Commissioner Douglas M.N. Mallillin.
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