9.11.4 Proof of posting of the Notice of Award, Contract/PO, and Notice to
Proceed.
9.12 We further recommended that Management ensure that all disbursements for
the project titled Civil Works for the Installation of Multi-Hazard Monitoring
Device (Closed-Circuit Television & Command Center), costing ₱3,378,422.82, are
supported by the required documents.
9.13 Lastly, we recommended that Management investigate the apparent irregularity
of supplier quotations predating the procurement notices to determine whether
there was prior disclosure or manipulation of procurement timelines.
Appropriate accountability measures should be implemented if impropriety is
confirmed.
9.14 The Municipality’s BAC believed that once procurement through public bidding had
failed twice, the third attempt could proceed through negotiated procurement,
requiring only the basic legal documents rather than the complete set of eligibility
requirements. However, Management now aims to strictly comply with all applicable
laws, rules, and regulations governing procurement moving forward.
9.15 The Auditor would like to emphasize that as previously mentioned, Section 53.1 of
the Revised IRR of RA No. 9184 allows Negotiated Procurement as a method of
procurement of Goods, Infrastructure Projects, and Consulting Services, whereby the
Municipality directly negotiates a contract with a technically, legally, and financially
capable supplier, contractor or consultant, in the case of two failed biddings.
9.16 Management is advised to refer to the provisions of applicable laws, rules, and
regulations before initiating any procurement process, rather than relying on their
assumptions.
Technical Inspection: Road Concreting in Barangay Najandig
10. The infrastructure project titled Concreting of Barangay Road, with a total contract
cost of ₱3,044,820.36, was reported as 100% complete and fully paid in CY 2023.
However, an inspection by a COA Technical Audit Specialist disclosed that the
project was only 97.22% complete, resulting in an overpayment of ₱84,575.18.
10.1 On January 9, 2023, the Municipality entered into a contract for the implementation
of the project titled Concreting of Barangay Road at Sitio Cali Area, Barangay
Najandig, Zamboanguita, Negros Oriental, with a total contract amount of
₱3,044,820.36.
10.2 The project was reported to be 100% complete as of February 20, 2023, based on the
Statement of Work Accomplished (SWA) attached to the payment of the final billing
covered by Check No. 1559423 and Disbursement Voucher (DV) No. 100-2023-03-
389 dated March 17, 2023.
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