THE Commission on Audit has granted the claim of a trucking company for a P12.64 million compensation against the Cagayan de Oro City government for unpaid hauling services dating back to 2013.
COA Chair Michael G. Aguinaldo and Commissioner Roland C. Pondoc said it was undisputed that the city government entered into a garbage hauling contract with claimant Road Runner Freight and Logistics (RRFL) on March 25, 2013 and the latter was not paid for its services from June 22 to August 22, 2013.
The contractor’s claim had also been upheld earlier in an arbitration before the Integrated Bar of the Philippines (IBP), which was confirmed by the Cagayan de Oro Regional Trial Court branch 38.
Based on records, payment was withheld due to allegations of overbilling by the contractor for the months of March and April 2013, which prompted the issuance of notices of suspension by the COA.
However, the audit team leader lifted the notice of suspension on January 11, 2019 after review of the transaction disproved any incidence of overbilling or overpayment.
The arbitral body said the subject of the claim for compensation is totally distinct from the period supposedly covered by overbilling.
The COA Commission Proper pronounced itself satisfied that there was already a final and executory decision with monetary judgment on the contractor’s claim.
“This Commission gives credence to the findings of the IBP in its Final Award where it was established that there was no dispute as to the existence of the garbage hauling contract; the fact that RRFL performed its obligation and the volume or extent of garbage hauled,” the commission said.
With the lifting of the notice of suspension, the COA said there was no longer any reason for the city government to withhold payment on the claim.
In addition to the sum of P12,645,322.50, the commission also said the contractor is entitled to a legal interest rate of six percent computed from December 19, 2013 to August 22, 2013 and from November 8, 2016 until full payment has been made.
