STATUS OF
REFERENCE OBSERVATION RECOMMENDATION IMPLEMENTATION /
RESULTS OF VALIDATION
established. Moreover, the
procurements were not covered
with warranty security either in the
form of retention money or a special
bank guarantee in an amount
equivalent to one percent (1%) of
the purchase price, contrary to
Section 62.1 of the Revised
Implementing Rules and
Regulations (IRR) of Republic Act
(RA) No. 9184, posing risks that
should there be defects in the
vehicles, the LGU may not be able
to recover the cost thereof.
a. Tax receipts from the Bureau of
Customs or the BIR were not
attached to the DVs nor submitted
to the Audit Team as required under
Section 2 of A.O. No. 200 dated
November 21, 1990.
b. The Municipality failed to deduct
one percent (1%) warranty security
from the total contract price of the
vehicles, posing the risk that if there
are defects in the vehicles, the LGU
may not be able to recover the cost
thereof.
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