THE Commission on Audit has lifted two notices of disallowance (NDs) issued in 2015 against officials of the Metropolitan Manila Development Authority (MMDA) regarding payments to contractors for flood control projects totaling P681.92 million.
The eight-page ruling granted the consolidated petitions for review filed by former MMDA chairman and now Sen. Francis Tolentino, assistant general manager for Finance Edenison Fainsan, chief accountant Ruth Diaz, monitoring team member Jose Reynaldo Lunas, and Bids and Awards Committee secretariat head Armando Perez, who were previously held liable by the COA for failure to submit full documentary support for the said projects.
The commission noted that the required documents have been submitted, albeit belatedly, together with the filing of appeal.
“The disallowances were premised on the failure of the MMDA to submit all the documents required under the NSs (notices of suspension) within 90 days. Petitioners alleged to have submitted the said documents together with the appeals from the NDs. The auditors confirmed the submission of the documents and found that the same were compliant,” the COA said.
Records showed the audit team issued notices of suspension against the release of payment to contractors Peter G. Chua Builders-Tokwing Construction Joint Venture for the North Project and J. D. Legaspi Construction for the West Project due to deficient contract documentation for the Design and Build of Pumping Stations of the two Metro Manila flood districts.
The suspensions ripened into disallowance when the MMDA failed to submit the required documents within 90 days.
Among the infractions noted by auditors were the absence of the detailed engineering investigations, surveys and designs; proof of posting of the Bid Bulletins on the Government Electronic Procurement Systems (G-EPS) website; and the duly approved program of work or delivery schedule and cost estimates.
