Officials from the Department of Public Works and Highways in Central Visayas (DPWH-7) may face possible charges for entering into a Php 54.94 million contracts without going through public bidding, the Commission on Audit (COA) audit report said.
In September 2006, DPWH-7 and Gampik Construction and Development Inc., procured 660 lampposts for the cities of Cebu and Mandaue in preparation for the Association of Southeast Asian Nations (Asean) Summit in January 2007.
Deemed as excessive and 10 times more than its actual cost, the contract was done through a negotiated procurement, a procedure allowed only in case of imminent danger and where the procurement does not fall under Shopping in Section 52(a) of the IRR-A and amounts to Fifty Thousand Pesos (P50,000.00) and below.
“The hosting of the Asean Summit is not a disaster. Since there is no calamity at the time the projects were implemented, there is no danger to speak of,” the COA decision said further noting the failure of the involved parties to comply with the requirement to post the notice of negotiated contracts on the Government Electronic Procurement System website.
PHILIPPINE DAILY INQUIRER