The Commission on Audit (COA) flagged the Office of the Vice President (OVP) for failing to follow procurement regulations when it purchased equipment to expedite the formation of its satellite offices at the commencement of Vice President Sara Duterte's tenure.
State auditors identified the OVP's purchase of semi-expendable equipment using cash from its officers, whom it later reimbursed, in its annual audit report for the fiscal year 2022, which was released on June 29.
Furthermore, the receipts for these P668,197 acquisitions were recorded only one to three months after the purchase, raising issues about accountability for the property, according to the agency.
While the OVP provided a quotation to ensure they purchased the equipment at the lowest market price, the COA stated that the OVP's "failure to undergo these purchases in the processes and procedures required under Republic Act No. 9184... defeats the purpose of the procurement law, which is to standardize and improve transparency in the procurement processes."
The procurement law, commonly known as the Government Procurement Reform Act, requires government entities to conduct competitive bidding only for acquisitions of P1 million or more.
Also, the law stipulates that "shopping may be resorted to [when, for example, there is an unforeseen contingency requiring immediate purchase]—as long as the price does not exceed P50,000.
When COA auditors questioned the OVP about its use of reimbursements, which are not specifically stated in the procurement rules, the OVP stated that it wished to "immediately expand [its] services... to various provinces.
However, "the immediate establishment of OVP's SOs (satellite offices) without a standardized and streamlined process in handling and reporting of acquired PPE (plant, property, and equipment) resulted in late reporting and recording of the purchased property," according to state auditors.
According to reports, the OVP planned to buy the equipment so that it could open additional satellite offices on Duterte's first day in office.
The OVP now maintains nine satellite offices across the country. The first six satellite offices in Surigao del Sur province's cities of Dagupan, Cebu, Tacloban, Zamboanga, Davao, and Tandag were among Duterte's campaign headquarters in the 2022 elections.
According to the OVP, these were turned into satellite offices in July of that year in order to make their services more accessible to residents living outside of Metro Manila.
The OVP opened its seventh satellite office in Bacolod City a month later. The eighth office, in Cauayan City, Isabela, opened in April of this year, while the ninth, in Cotabato City, opened in June.
The OVP stated that the satellite offices were not established based on region but rather on strategic placement, with proximity and accessibility to other locations or islands being a primary consideration.
The COA instructed the OVP to halt its procurement transactions through reimbursement, as this "defies the purpose of the procurement law," and to properly plan and schedule its procurements.
