Status of
Ref Observation Recommendations Implementation/
Results of Validation
as prescribed under DILG MC No. 59) Submission of the lacking Unimplemented
2014-155 as amended by DILG documents as prescribed under No action taken by
MC No. 2015-52 were not DILG MC No. 2014-155 as management.
submitted, including other lacking amended, as well as the other
documentary requirements, documentary requirements
thereby precluding the thorough discussed above.
evaluation of the transaction.
Lastly, the persistent importation 60) Lastly, Management submit Unimplemented
of goods is contrary to justification as regards the No action taken by
Administrative Order No. 227 provision of Administrative management.
which directs all government Order No. 227 and the categorical
agencies to give preference to advantage for importing heavy
materials and supplies produced, equipment instead of sourcing it
made, and manufactured in the from domestic suppliers.
Philippines.
2020 The winning bidder/supplier of the 61) Management submit a written Unimplemented
AAR, City’s procurement of heavy explanation why payments from Copies of the
AO equipment and vehicles totaling the LCs were issued to the Promissory Notes
No. 5, ₱137,389,164.00 was supplier and why payments were were already
page CONEQUIP PHILIPPINES INC., made against the LCs despite the submitted through a
42 a domestic supplier, but the lack of delivery of goods. Transmittal Letter
available Letter of Credit (LC) Further, the electronic fund dated 06/07/2021.
which the City availed from Land transfers for the first five releases A request letter dated
Bank of the Philippines showed of the LCs, the corresponding 06/17/2021 was
that funds were transferred to BIG promissory notes, and the sales already sent to the
YELLOW INTERNATIONAL invoice be submitted to the Office Land Bank of the
LIMITED, a foreign supplier of the Auditor for further Philippines – Negros
based in Singapore, hence, casting verification. Oriental Lending
doubt as to the veracity of the Center for the
actual bidder as this may be documents requested.
contrary to Section 23.4.1 of the
2016 Revised IRR of R.A. No. The City had yet to
9184. Moreover, having receive the copies of
awarded the bid to a domestic the requested
entity should have precluded the Electronic Fund
City from availing of LCs since Transfers and Sales
this is contrary to GPPB Invoices.
Resolution No. 12-2019 that limits
the use thereof in favor of foreign On the Other hand, a
suppliers. Lastly, payment was Reiteration Letter
charged against the LC prior to dated 01/17/2025
delivery in violation of Section addressed to the
42.6 of the 2016 Revised IRR of Land Bank of the
R.A. No. 9184, thus, clearly Philippines - Negros
disadvantageous to the interest of Oriental Lending
government. Center was made to
ask for the
documents.
2020 The BAC, through its Secretariat, 62) The BAC comply with the Unimplemented
AAR, did not post the Notices of Award mandatory posting of the updated No action taken by
AO (NOAs), contracts or purchase APP, NOA, and other management.
No. 6, orders including its updated information relative to the
Annual Procurement Plan (APP) Emergency Procurement under
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