Amid possible inconsistencies, the CoA Commission Proper approved CoA Region 6’s decision to compensate Meihao Corporation for shipping and installing medical equipment to the Barotac Viejo District Hospital on 28 February 2019.
The provincial administration of Iloilo may soon face administrative or criminal charges should the Office of the Ombudsman prove them liable for purchasing an X-ray machine for P3.4 million without a budget allocation five years ago.
State auditors instructed the Ombudsman to investigate the acquisition in light of noncompliance with the provisions of Republic Act 9184, often known as the Government Procurement Reform Act.
The charges, however, are still subject to the findings of the state prosecutors.
Amid possible inconsistencies, the CoA Commission Proper approved CoA Region 6's decision to compensate Meihao Corporation for shipping and installing medical equipment to the Barotac Viejo District Hospital on 28 February 2019.
After the provincial government failed to pay Meihao Corp the P3.4 million contract fee under the purchase order, the supplier filed a petition for a money claim with the CoA.
Despite the noncompliant procurement procedure, CoA Region 6 maintained that the provision of the X-ray machine and the benefit to BVDH were duly proven and that the province cannot conclusively prove the province must uphold payment, primarily as Meihao fulfilled its commitments under the PO.
"After careful evaluation, this Commission grants the petition for money claim. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith," the committee stated, adding that there were violations of procurement laws because there was no appropriation for the x-ray machine.
"Notwithstanding actual benefit to the government, in view of the failure of the Provincial Government of Iloilo to comply with the requirements under RA No. 9184 and its IRR, this case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate administrative or criminal charges, if warranted," it added.
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