THE Commission on Audit has questioned the validity of the award of 269 infrastructure contracts by the National Irrigation Administration (NIA) based on findings that pertinent provisions of the Government Procurement Reform Act (RA 9184) and its Implementing Rules and Regulations (IRR) were not complied with.
The audit team tagged 166 contracts worth P1.135 billion with deficient eligibility documents, including an approved program of works (POW), abstract of bids, and contract agreement.
On the other hand, 103 contracts worth P1.356 billion were also called to question for procedural violations in the conduct of public bidding.
“Procedures in the procurement of infrastructure projects through public bidding …were not properly followed, thus posing a risk that the infrastructure contracts were awarded to the contractors who might not be eligible,” the COA said.
Auditors said the faults were found in projects being handled by NIA Regional Offices 2 and 4B; the Magat River Integrated Irrigation System (MARIIS); and the four Irrigation Management Offices (IMOs) of Isabela, Davao del Norte, Davao de Oro, and Mindoro Oriental-Marinduque-Romblon (MoMaRo).
Based on the audit report, there were 104 contracts with eligibility deficiencies under MARIIS worth P354.477 million; 53 contracts under Isabela IMO worth P399.063 million; and nine contracts under NIA-RO2 worth P381.637 million.
Among the documents found lacking or missing were notices to proceed, proof of how the approved budget for the contract (ABC) was computed, minutes of the opening of bids, post qualifications reports, contractor’s financial proposal, and bid evaluation reports.
Likewise, projects with questions on the conduct of public bidding were found under NIA-RO 4B (Mimaropa) with 12 contracts worth P467.164 million; NIA-RO 11 (Davao del Norte) with 27 contracts worth P188.518 million; NIA-RO 11 (Davao de Oro) with 8 contracts worth P46.446 million; and NIA-RO 4B/MoMaRo IMO with 56 contracts worth P654.254 million.
Among the violations cited in the audit report were late or non-posting of the notices of award, notices of proceed on the Philippine Government Electronic Procurement System (PhilGEPS) and improper composition of the Bids and Awards Committees (BAC).
“In NIA RO Nos. II and IV-B, MARIIS, and four IMOs, audit disclosed that these Offices awarded 269 contracts with an aggregate contract cost of P2.492 billion, without adhering strictly with the pertinent provisions of RA No. 9184 and its 2016 RIRR,” the COA said.
It reminded agency officials that the eligibility and procurement guidelines were put in place “to ensure transparency and efficiency in the NIA’s procurement activities.”
In its comment to the audit observations, the NIA-RO 2, Isabela IMO, and MARIIS made a commitment to submit the lacking documents in full.
For their part, NIA-RO 4B, and IMOs of Davao del Norte and Davao de Oro acknowledged their lapses in observing procedures but assured the COA that they will comply with its recommendations in the further conduct of public bidding in the future.
