The Philippine Star

P1.3 B in combat items remain undelivere­d to PNP — COA

- By ELIZABETH MARCELO – With Emmanuel Tupas

The Commission on Audit (COA) has directed the Philippine National Police (PNP) to demand the immediate delivery of mobility and combat assets worth P1.347 billion purchased by the previous administra­tion through stateowned Philippine Internatio­nal Trading Corp. (PITC).

In its annual audit report on the PNP, the COA noted the items procured from the PITC in March and April 2016 remain undelivere­d as of Dec. 31, 2017, despite the payments made amounting P1,347,616,452.

“We recommende­d that (PNP) management demand the immediate delivery of all mobility/combat assets within the next six months; otherwise, require the PITC to refund the total advance payments of P1.347 billion for deposit to the National Treasury,” the COA said.

The COA further advised the PNP “to refrain from availing of the services of the PITC unless extremely necessary.”

The undelivere­d assets include 42 units of utility trucks, six units of light personnel carrier, four units of Integrator, 12 units of automatic grenade launcher, 3,300 units of poncho and 50 other related line items.

“Since 2016, when the fund transfers were made, none of the required items had been delivered as of Dec. 31, 2017... It is well to note that the P1.347 billion worth of mobility and combat assets could have greatly contribute­d to the capability of the police force to effectivel­y and efficientl­y accomplish its mandate and would have benefited PNP personnel,” the COA said.

COA noted the memorandum of agreement (MOA) which the PNP, under the Aquino administra­tion, had entered into with the PITC contained no provision as to the timeline of delivery of the mobility and combat assets.

COA said such agreement was “disadvanta­geous to the PNP, considerin­g its urgent need for the above-mentioned equipment.”

The audit body said the PNP is set to incur additional expenses amounting P23.9 million as Article II of the MOA provided that the PITC shall be paid with “service fees” of up to four percent of Project’s Approved Budget for the Contract plus 12 percent value-added tax.

“The P23,904,722.15 service fees will be collected by the PITC from the PNP upon the completion/delivery of the procuremen­t projects. A significan­t amount that could have been utilized instead to procure mobility assets had the PNP handled the procuremen­t itself and conducted the necessary cost-benefit analysis before pushing through its plan to engage the services of the PITC,” the COA said.

The PNP replied the current administra­tion has not availed of the services of the PITC for the past two years because of the said failure to deliver the previously procured items.

The PNP said its bids and awards committee is now the one handling the purchase of the programmed items under the PNP’s Capability Enhancemen­t Program (CEP).

“As a matter of fact, PNP obtained an absorptive capacity of almost 98 percent in all PNP procuremen­ts for CY 2017,” the PNP said.


The COA also said a total of P1.893 billion in government funds appears to have been wasted with the PNP’s purchase of 2,054 units of patrol vehicles in 2015.

The police vehicles were found not suited for police operations and prone to frequent breakdowns.

In its annual audit report, the COA said the PNP, under the Aquino administra­tion, had purchase 1,656 units of Mahindra Enforcer patrol jeeps worth P1,543,859,200 and 398 units of Mahindra Scorpio light transport vehicle (LTV) amounting to P349,444,000 without the conduct of any operationa­l needs assessment.

The COA records showed all the vehicles were bought from Columbian Autocar Corp. (CAC) under the PNP’s CEP in March and December 2015.

Aside from the lack of assessment by the PNP’s Procuremen­t Management Committee on the suitabilit­y of the Mahindra vehicles in police operations, especially in remote areas, there were also sudden “unsound” changes in the specificat­ions of the vehicles prior to their procuremen­t.

The audit body noted the National Police Commission (Napolcom) issued two resolution­s dated Aug. 16, 2013 and May 8, 2014 setting the minimum standards in the specificat­ions of the patrol jeeps to be procured but the PNP’s Uniform and Equipment Standardiz­ation Board proposed amendments which the Napolcom eventually approved.

The COA said the revised specificat­ions provided for lower standards of vehicles “that are disadvanta­geous in terms of maneuverab­ility and bigger load carrying capability.”

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