DSWD-NCR told: Pay P20.5M claim of supplier of furniture to shelters for elderly, street kids

THE Department of Social Welfare and Development – National Capital Region (DSWD-NCR) has been ordered by the Commission on Audit to pay the claim of Ergo Contracts Philippines Inc. (ECPI) on unpaid deliveries of furniture and fixtures totaling P20.52 million.

In its 11-page decision, the COA en banc held that the claimant had submitted sufficient proof of DSWD-NCR’s obligations which was likewise confirmed by the Regional Director of the said agency.

“In view of the foregoing, this Commission finds it proper to grant the present petition. The money claim falls within the ambit of liquidated claims,” the commission said.

Based on the petition, Ergo Contracts won the public bidding to deliver various furniture and fixtures to 11 Resident Care Facilities (RCFs) in Metro Manila with a tender of P23.3 million against the approved budget of P23.51 billion.

The Notice to Proceed was issued on December 11, 2019 giving the supplier 30 days to complete the delivery.

However, the procuring agency granted several requests for an extension due to various reasons, including port congestion due to the Christmas season in 2019 and the start of the COVID-19 pandemic so the final delivery was only accomplished on March 24, 2022.

The purchased items were delivered to the Elsie Gaches Village, Golden Reception and Action Center for the Elderly and other Special Services (GRACES), Haven for Children, Haven for Women, INA Healing Center, Jose Fabella Center, Marillac Hills, Nayon ng Kabataan, Reception and Study Center for Children, Rehabilitation Sheltered Workshop, and Sanctuary Center.

While the COA found the grant of numerous extensions “irregular,” it held that the fault should not be attributed to the Ergo Contracts.

“This Commission also considers the fact that the delivery period coincided with the onset of the COVID-19 Pandemic wherein the government implemented various levels and areas of community quarantines,” it added.

“Wherefore, the Petition for Money Claim of Ergo Contracts Phils., Inc., …against the Department of Social Welfare and Development–National Capital Region, for the payment of the project Supply and Delivery of Furniture and Fixture of the Centers &