COA reduces P139M disallowance vs Laguna LGU officials to just P35M

FROM P139.58 million in total disallowances, the Commission on Audit has partially granted the petition for review of former and current officials of the provincial government of Laguna, which reduced the amount to just P35.305 million.

The Notices of Disallowance were issued in relation to the P143.2 million first phase of the project for the expansion and renovation of the Laguna Provincial Hospital awarded in 2006 to the joint venture of JBros Construction and D. L. Cervantes Construction.

However, the COA en banc said it intends to refer the audit records to the Office of the Ombudsman for investigation into violations of the Government Procurement Reform Act (RA 9184) and its Implementing Rules and Regulations (IRR).

The 29-page decision was signed by COA chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario Lipana.

Based on the evaluation of the COA Technical Audit Specialist, the contract cost of P143.2 million exceeded the allowable cost of only P111.49 million or an excess of P31.71 million.

While the Provincial Engineering Office explained the additional cost due to work revisions, the need to put up a construction ramp, and consultancy fees for feasibility and pre-planning, the audit team still issued a notice of disallowance (ND) for P31.71 million.

A second ND was issued for P3.31 million following verification of the P94.38 percent work accomplishment report after the technical team found defects and deviations from plans and specifications.

When the audit reached the COA Region 4A office, the regional director decided to disallow the entire amount of P139.577 million representing payments made to the contractor and issued a supplemental ND for the additional sum of P104.27 million.

Held liable in the first two NDs were former Governor Teresita Lazaro, provincial engineer Gilberto Mondez, project architect Leroy Gabinete, project engineer David Rubio, electrical engineer Albert Galipot Jr., resident engineers Ramil Halili and Ronaldo Reodica, materials engineer Demetria Mondez, and the contractor.

Under the supplemental ND, added to the list of persons liable were acting Sangguniang Panlalawigan (SP) presiding officer Edwin