irregular procurement transaction, raising serious concerns regarding compliance
with established procurement regulations and potentially undermining the fairness
and integrity of the bidding process.
8.15. This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-08(2024)-Bindoy dated March 13, 2025.
8.16. We recommended that the Municipal Mayor:
8.16.1. Conduct a thorough investigation into the circumstances surrounding
the BAC’s acceptance of the non-compliant bid and the failure to
disqualify the bidder who submitted another entity’s SLCC;
8.16.2. Hold the BAC and TWG members including other personnel involved
in the procurement transaction accountable for their actions by
enforcing suitable sanctions or disciplinary measures in accordance
with established procurement regulations and relevant municipal
administrative policies;
8.16.3. Instruct the Bids and Awards Committee (BAC) to strictly adhere to
the eligibility requirements and other provisions of RA No. 9184 in all
future procurements;
8.16.4. Implement sanctions for bidders who submit non-compliant bids or
falsified documents to deter unethical practices and maintain the
integrity of the bidding process; and
8.16.5. Allow BAC and TWG members and other personnel involved in the
procurement process to attend regular training and capacity-building
activities to enhance their understanding of procurement rules and
regulations and ensure proper implementation.
8.17. During the exit conference, the BAC Chairman admitted that this was an honest
mistake on their part and upon receipt of the AOM, they began the process of
reviewing their procurement plan so as to avoid the same error.
8.18. However, the Municipal Mayor commended the completed purchase and
installation of the project and affirmed that there had been no problems so far.
8.19. The Audit Team reiterated that the AOM was not calling into question the quality
of the project and even appreciated that the Municipality endeavored for the use of
renewable energy sources. Nevertheless, the proper process and the provisions in
place regarding procurement should still be followed. Moreover, complete and
proper documents should be submitted by every contractor.
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