DSWD told to pay Pulse Asia P232K for consultancy; additional P700K claim denied

THE Commission on Audit has ordered the Department of Social Welfare and Development (DSWD) to pay a P232,500 claim filed by Pulse Asia Research, Inc. in 2022 for unsettled consultancy services fees based on a contract signed in 2020.

However, the COA en banc denied additional claims for P500,000 exemplary damages and P200,000 attorney’s fees and the cost of suit sought by the polling firm, citing lack of jurisdiction.

COA Chair Gamaliel A. Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana signed the six-page decision.

Records showed the proposal to engage consultancy services came from the DSWD’s Policy Development and Planning Bureau (PBDB) with a budget of P1 million and was approved by DSWD Undersecretary for Policy and Plans Luzviminda Ilagan.

The agency’s Bids and Awards Committee recommended that the contract be awarded to Pulse Asia on November 20, 2019 based on its quotation of P930,000.

Based on the Purchase Order signed between the DSWD and consultant, 25 percent was payable upon submission of the first report, another 25 percent when the second report was turned in, and a balance of 50 percent when the third report was submitted.

While DSWD paid the first tranche, the payment for the second tranche was not released even if Pulse Asia submitted the “full analytical report” of the Ulat ng Bayan from November 23 to December 2, 2020. The claimant presented a copy of the Certificate of Services Rendered as proof.

In its petition, Pulse Asia said the explanation offered by the DSWD was that the Disbursement Voucher was chargeable against the 2019 continuing funds and could no longer be processed.

In its response, the DSWD said it is willing to pay but the funding allocation for the consultancy services had already been reverted to the General Fund after the 2019 Continuing Appropriation lapsed on June 30, 2021 before the processing of payment due was completed.

The COA en banc said the obligation must be paid since Pulse Asia complied with its obligation under the contract.

“Article 1159 of the New Civil Code provides that obligations arising from contracts have the force of law between the contracting parties and should be complied with in