11.13 The President of the PCL–Negros Oriental Chapter sincerely believes, based on
their understanding of applicable laws, rules, and regulations, that their
procurement and expenditure activities are not subject to the requirement of public
bidding.
11.14 He further stated that when PCL–Negros Oriental received financial assistance
amounting to ₱800,000.00 from the Local Government Unit (LGU) of Sibulan,
sourced from LGU Tanjay, they were not advised that disbursements from said
amount would necessitate the conduct of public bidding.
11.15 Moreover, they emphasized their continued good faith in the belief that, since the
₱800,000.00 was formally released to PCL–Negros Oriental, they were authorized
to utilize the amount for the designated priority programs and projects, with the
understanding that proper liquidation would be submitted afterward. He added that
they were unable to undertake public bidding due to the absence of their own Bids
and Awards Committee. They maintained that, as long as the disbursements are
properly liquidated and aligned with the identified priority programs and projects,
the utilization of the funds is considered compliant and proper.
11.16 He further added that this is the first time that the PCL- Negros Oriental has
received an AOM from the Commission, requiring them to conduct public bidding
for the financial assistance they have received from the LGU.
11.17 According to him, during the previous administration of PCL–Negros Oriental,
the League received financial assistance from various LGUs. Upon receipt of these
funds, the League proceeded with disbursements without conducting public
bidding, provided that liquidation reports for the expenses were properly
submitted. Consequently, the current administration of PCL–Negros Oriental has
continued this practice in good faith, believing it to be legitimate, as it has not been
previously questioned or flagged as improper by the Commission.
Auditor’s Rejoinder
11.18 The assertion that public bidding is not required for disbursements made by the
PCL is inconsistent with the provisions of Republic Act No. 9184, also known as
the Government Procurement Reform Act, which mandates that all procurement
of goods, infrastructure projects, and consulting services funded by public money
must undergo competitive bidding, unless otherwise allowed under specific
alternative modes. The law applies to all government entities, including leagues
and federations of local elective officials, as affirmed by COA Resolution No.
2011-014 and relevant Supreme Court jurisprudence.
11.19 The PCL’s integration into the local government structure, its receipt of public
funds, and its execution of public duties confirm its status as a government
institution. Therefore, it must follow government accounting and auditing
standards, including procurement rules and regulations.
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