COA flags S. Leyte LGU over P61-M COVID expenses

The Commission on Audit (COA) has sought an explanation from the provincial government of Southern Leyte in connection with the procurement of medical and food supplies amounting to P61.8 million last year for its COVID-19 pandemic response.

In its 2020 annual report, the COA said the price of the procured items was 100 percent higher compared to the fair value of similar items in the market.

The COA said it could issue notices of disallowance for the transactions.

“Preliminary market scanning of prices… was not done by the province before the procurement of PPAs (projects, programs and activities) amounting to P61,823,927.49 to mitigate the adverse effects of the COVID-19 pandemic... The government was not assured of the most advantageous price,” the COA report read.

The agency said the provincial government used P21.995 million to purchase medical ventilators, a portable x-ray machine, medical supplies, devices, reagents and testing kits while P1.89 million was spent for meals of frontline workers.

A total of P23.77 million was used to purchase personal protective equipment, P7.54 million for rice procurement and distribution, P4.136 million for two disinfection machines, P1.855 million for groceries and P260,148 for the provincial government’s contact tracing system.

The COA said a market survey conducted by its audit team found out that the items sold to the provincial government were more than double the prices being offered by other suppliers in the market.

In their reply, the bids and awards committee chairman and secretariat said they did not check the procurement service price catalogue because the procured items were ”not commonly used.”

They said they were “at the mercy” of the suppliers at the time and were compelled to purchase the items upon the recommendation of the Department of Health because it was ”a matter of life and death” for the constituents of the province.