COA affirms liability of Cabanatuan City officials for P8.93M procurement

FORMER Cabanatuan City administrators Roy Ortiz and Jose Roy Balagtas and Bids and Awards Committee (BAC) member Susana Dallo-Santos have failed to convince the Commission on Audit (COA) to lift the notices of disallowance (NDs) issued against the purchase of a P5.9 million generator set in 2008 and two motor vehicles worth P3.03 million in 2009 for irregularities.

The COA en banc denied separate motions for reconsideration filed by the three officials citing their direct participation in the irregularities attending the two transactions, including failure to conduct a public bidding and paying for vehicles that were already more than 10 years old when acquired.

“Thus, the movants, who were in bad faith for their direct participation in the above-discussed irregularities, are solidarily liable to return the amount paid. The liability of all persons named under the ND shall remain,” the Commission said.

Other than the three movants, also held liable in the assailed 2020 decision were former city mayor Alvin Vergara, former accountant Norma Serapio, engineer Arnand Dagamac, BAC chairman Alfredo Ilagan, budget officer Laureta Jacinto, property inspector Evangeline Batisan and supplier/vendors Richard Olalia and Melchor Martinez.

Ortiz, Balagtas, and Santos invoked good faith and argued that they should not be held liable since there was no finding of overpricing in both purchases. They added that the motor pool certified the vehicles to be in good running condition while the generator was declared compliant in specifications.

Ortiz added that he was not even a member of the BAC.

The COA however pointed out that the city officials failed to explain why the letter of credit in favor of generator supplier, Shin Heung Corp of Korea, was issued on December 9, 2008 with the Land Bank of the Philippines, at least four months ahead of the issuance of purchase request, the purchase order, and the BAC Resolution on March 16, 2009.

Likewise, the Commission found that the purchased Kia Cosmos van and Kia Frontier ambulance were already more than 10 years old on the date of delivery. While the Department of Budget and Management – National Budget Circular No. 446-A allows the