Sanggunian, open a separate bank account in the General Fund for the 20
percent DF, to which the Municipal Accountant and Municipal Treasurer
transfer the determined or reconciled balance of the said account.
Defects in the procurement process - ₱17,975,445.24
11. Defects in the procurement process for the rehabilitation of Barangay roads and
the purchase of construction materials and office supplies totaling ₱17,975,445.24,
particularly in the observance of proper timelines and compliance with the
procurement procedures outlined under the Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 9184 compromised the integrity of these
transactions, creating potential inefficiencies and additional costs to the
government.
11.1 The IRR of RA No. 9184, otherwise known as the “Government Procurement
Reform Act,” was promulgated to prescribe the necessary rules and regulations
for the modernization, standardization, and regulation of the procurement
activities of the Government of the Philippines. The IRR provides specific
procedural timelines and requires certain processes to be performed in order to
promote integrity and transparency in the conduct of procurement.
11.2 Section 37.1.6 of the IRR of RA No. 9184 requires that the Bids and Awards
Committee (BAC), through the Secretariat, shall post, within three (3) calendar
days from its issuance, the Notice of Award (NOA) in the PhilGEPS, the website
of the Procuring Entity, if any, and any conspicuous place in the premises of the
Procuring Entity.
11.3 Further, Section 37.4.2. of the aforementioned IRR also requires that the procuring
entity, through the BAC Secretariat, shall post a copy of the Notice to Proceed
(NTP) and the approved contract in the PhilGEPS and the website of the Procuring
Entity, if any, within 15 calendar days from the issuance of the NTP.
11.4 Our review of the supporting documents for the disbursements pertaining to the
rehabilitation of barangay roads and the purchase of construction materials and
office supplies, totaling ₱17,975,445.24, revealed that some NOAs were posted
late. It was also observed that some NOAs and NTPs were not posted at all on the
PhilGEPS website (see details in Appendix 2).
11.5 Moreover, there were certain contracts that were not issued with an NTP, nor was
there any supporting documentation to confirm their issuance. The absence of an
NTP raises concerns about the proper execution and commencement of the
awarded contracts, potentially affecting project timelines and deliverables. Thus,
in turn, it may cost the Municipal Government additional expenses due to an
increase in materials and labor prices.
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