The Commission on Audit (COA) has declared final its notice of disallowance (ND) issued against the Pamantasan ng Lungsod ng Maynila (PLM) on the P4.5 million used in the procurement and installation of speech laboratory equipment in 2003.

The ruling was issued as the COA denied the motion filed by lawyer Alfredo C. Ferrer Jr., former property officer of PLM, to reconsider the 2018 decision issued by the commission’s Local Government Sector (LGS)-National Capital Region (NCR) that affirmed the disallowance.

The COA said the purchase of the equipment was disallowed as it was purchased through direct contracting. It also said that the PLM should have ensured that the equipment purchased did not have other suitable substitutes in the market.

However, it also said that Ferrer failed to prove the non-availability of such a substitute.

At the same time, the COA said that the equipment was purchased at a time when the speech laboratory was undergoing renovation.

It said the equipment was delivered by Composite Technology, Inc. on Aug. 29, 2003, but was not installed as the laboratory was undergoing renovation.

Since the equipment was not used for a long time, the COA said that humidity had set in it and the motherboard was full of dust and foreign materials.

The equipment was sent out for repairs and the PLM incurred additional expenses, it said.

It added that in the end, while the equipment was functioning, it was deemed no longer able to provide the purpose it had originally been intended.

In his motion, Ferrer told the COA that he acted in good faith with no intention to defraud the government, since it was his ministerial duty to prepare documents necessary for the procurement, such as purchase request, acknowledgment receipt, disbursement voucher, and many others.

He added that he was merely executing the orders of the procuring entity, which is the Board of Regents of PLM, and thus, he should not be held solidarily liable with the former president of PLM.

However, the COA said that Ferrer's arguments are not sufficient to reverse the decision and lift the subject ND.

It said: "The movant (Ferrer) cannot claim that his participation was merely executing the orders of the procuring entity. It is clear in his letter dated June12, 2013 that he requested the purchase of the speech equipment from Composite Technology, Inc. notwithstanding that there will be a renovation of the laboratory."

As chief of the PLM’s property office, Ferrer is directly responsible for the safekeeping of the equipment, thus, he should have exercised due diligence in ensuring that the equipment was properly stored, it also said.

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