BY GEROME DALIPE IV
ILOILO – State auditors said the Lemery municipal government’s purchase of goods and services totaling P1.571 million in 2023 did not undergo the proper procurement process.
The Commission on Audit (COA) questioned the mode of procurement of the municipality, which resorted to reimbursement mostly for meals and snacks during activities, meetings, and other services.
Such mode of procurement violated Republic Act No. 9184, or the Government Procurement Reform Act, the auditors noted in their annual audit report for 2023.
Hence, the auditors said the procurement of goods and services rendered the validity and propriety of the transactions “doubtful” for non-compliance to rules and regulations.
“It is noteworthy to mention that reimbursement is not a method of procurement since it happened after the actual purchase, rather it is a mode of payment of goods already purchased or expenses already incurred,” read the COA report.
The town purchased goods and services totaling P1.571 million through reimbursements. On various dates from February to December 2023, the municipality made 208 reimbursements in 11 months totaling P1,570,698.65. The amount of reimbursement ranged from P2,000 to P20,000 per transaction.
Most of the expenses reimbursed were for the purchases of meals and snacks during activities and meetings, repair and maintenance of motor vehicles, buildings, and equipment, purchases of office supplies, and other expenses relative to the conduct of the town’s activities.
The above transaction is contrary to the Government Procurement Reform Act and its implementing rules and regulations, thus rendering the validity and propriety of the transactions questionable, COA auditors said.
Section 10, Rule IV of 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 provides that all procurement shall be done through competitive bidding.
Resorting to another mode of procurement may only be allowed during “highly exceptional cases” to promote economy and efficiency, such as limited source bidding, direct contracting, repeat order, shopping, or negotiated procurement.
“In all instances, the procuring entity shall ensure that the most advantageous price for the government is obtained,” the auditors said.
COA auditors were told that such had been the “practice” of the municipal government which allows reimbursements for purchases not more than P15,000, and that snacks and meals were not canvassed since the exact number of participants could not be estimated, hence the snacks or meals were purchased during the day of the meeting or activity and paid through reimbursements.
However, state auditors noted that reimbursement is not a method of procurement since it happened after the actual purchase, rather it is a mode of payment for goods already purchased or expenses incurred.
“It was observed that most expenses for meals and snacks were for planned programs and activities of the municipality, thus, provision for food of the participants is already included in the budgetary requirements,” COA auditors said.
The auditors recommended a stop to the practice of reimbursement or direct purchase of goods and services.
The municipal government’s bids and award committee was also told to submit the approved Annual Procurement Plan (APP) of the municipality every year to the audit team.
The COA audit team also directed the program coordinator to provide a conservative estimate of the number of participants in the program or activity to be implemented and conduct the proper procurement process of meals and snacks before the program’s commencement./PN
