The Commission on Audit upheld the Notice of Disallowance against the P5.77 million payment that the Department of Public Works and Highways (DPWH) Regional Office V made to the contractor of a flood control project after finding that it was not built as claimed at the original site.
The COA said it would send the records of the case to the Office of the Ombudsman for investigation.
“This case shall be forwarded to the Office of the Ombudsman for investigation and filing of appropriate charges against the persons liable for the transactions, if warranted, as the use of funds for a different purpose may have violated Article 220 of the Revised Penal Code,” it said.
The project involves a P9.97 million contract awarded to BDL Construction on January 11, 2012 for the repair/reconstruction of a consolidation dam and repair/reconstruction of the scoured riverbank at Pinit Foot Bridge in Ligao City.
The COA Regional Technical Services Office inspected the project site in April 2013 and found that the consolidation dam was not rebuilt at all even if the contractor’s Statement of Work Accomplished claimed a 100-percent accomplishment.
The COA Region 5 office then disallowed the P5.77 million payment representing the budget for the consolidation dam and the miscellaneous expenses.
Held liable for the disallowed amount were DPWH RO V regional director Danilo Dequito, Implementing Office head Engr. Efren Manalo, and private construction firm BDL Construction and Supply.
Manalo appealed the finding, saying the payment should be allowed because there was a replacement project. It was not a consolidation dam but a 52-linear-meter concrete revetment some 200 meters upstream of the site of the original dam.
He said that if the contractor is not paid for the relocated project, it would be an unjust enrichment for the government.
But the COA en banc upheld the disallowance, saying the realignment of the project fund intended for a consolidation dam reconstruction to a concrete revetment was contrary to the provisions of the Government Procurement Reform Act and the 2010 General Appropriations Act, which funded the project.
“Utilizing the allotment for the consolidation dam to a revetment in the upstream portion of the Pinit Footbridge was tantamount to disbursing government funds without a valid appropriation,” it said.