Posting Requirement as per COA Circular No. 2012-001

View previous topic View next topic Go down

Posting Requirement as per COA Circular No. 2012-001

Post by utai pusai on Fri Oct 05, 2012 3:57 pm

Good day! Please help! Smile

Page 33 of COA Circular #2012-001 specifically requires that the copy of advertisement of IAETB should also be made in the newspaper for purchases of goods amounting to P2.0 million and above.

The problem is, the procuring entity failed for reasons unknown to me, to comply with such requirement. However, when I inquired into the circumstances, they averred the following:

"We understand that posting in the PhilGEPS website is enough considering that this is electronic site, and easy to be seen; we understand that posting at conspicuous places is enough; and the invitation sent to COA was enough notice.

With the goods already delivered, and the supplier awaiting payment, it makes me confused now thinking how to rescind (if you can call it that way) the contract between the PE and the supplier on account of non-compliance with posting requirement. The contract amount is P3.0 million above-medicines. Source: pdaf.

Assuming that newspaper clippings of the advertisement for IAEB cannot be dispensed with notwithstanding delivery of medicines, what should be done next? Does it mean that the contract cannot be enforced and the PE has to go back all throughout the procurement process to make good the posting requirement? what will happen to the supplier if ever? please, help me on this.

Thank you!


utai pusai
New Member
New Member

Female Number of posts : 3
Company/Agency : School of Hard Knocks
Occupation/Designation : fault-finder
Registration date : 2012-09-17

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by engrjhez® on Fri Oct 05, 2012 5:59 pm

utai pusai wrote:Good day! Please help! Smile

Page 33 of COA Circular #2012-001 specifically requires that the copy of advertisement of IAETB should also be made in the newspaper for purchases of goods amounting to P2.0 million and above.

The problem is, the procuring entity failed for reasons unknown to me, to comply with such requirement. However, when I inquired into the circumstances, they averred the following:

"We understand that posting in the PhilGEPS website is enough considering that this is electronic site, and easy to be seen; we understand that posting at conspicuous places is enough; and the invitation sent to COA was enough notice.

With the goods already delivered, and the supplier awaiting payment, it makes me confused now thinking how to rescind (if you can call it that way) the contract between the PE and the supplier on account of non-compliance with posting requirement. The contract amount is P3.0 million above-medicines. Source: pdaf.

Assuming that newspaper clippings of the advertisement for IAEB cannot be dispensed with notwithstanding delivery of medicines, what should be done next? Does it mean that the contract cannot be enforced and the PE has to go back all throughout the procurement process to make good the posting requirement? what will happen to the supplier if ever? please, help me on this.

Thank you!


Newspaper publication is a mandatory requirement. Notwithstanding the advertisement in the PhilGEPS, in the website and in conspicuous places provided by the agency, it must fall as it failed to comply with prescribed procurement procedures.

In my humble opinion, public bidding is a proceeding in rem for certain amounts involving public funds. An in rem proceeding is validated essentially through publication. This being so, the process must strictly be complied with. Otherwise, persons who may be interested or whose rights may be adversely affected would be barred from contesting an application which they had no knowledge of. (Director of Lands vs. Court of Appeals, G.R. No. 102858 July 28, 1997)

What the COA may issue is a Notice of Disallowance for such contract with patently irreparable omission. That means you cannot pay the Supplier. The Supplier now being aggrieved, will seek the Court for relief. If it was proven that the Supplier who delivered the goods acted in good faith in response to the contract, they may still be paid of the amount due to them by principle of quantum meruit. Unfortunately for the BAC, it will be a "bad hair day". The case of "dereliction of duty" is a grave offense punishable by removal from office, without prejudice to penal and civil liabilities.

I hope I am wrong, but that is the way I see the situation.
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 38
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by Jovinal on Sat Oct 06, 2012 10:39 pm

I agree with you Engr. JHEZ!!
avatar
Jovinal
Board Veteran
Board Veteran

Male Number of posts : 438
Company/Agency : LGU- Danao City
Occupation/Designation : City Accountant
Registration date : 2011-11-27

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by jcolas on Sun Oct 07, 2012 3:20 pm

In the advertisement, we have threshold to follow. It is very clear under Section 21.2.2. For goods, if the ABC is more than two million, then it has to be posted in a newspaper of general nationwide circulation... In your case, your ABC is three million but you have not posted it in a newspaper of general nationwide circulation. So its plain in simple; as Engrjhez has posted, their is a violation and I believe, their really is a violation. What I do not agree is the action of the COA as averred by Engjhez, I believe, they will not rashly issue a Notice of disallowance. Their are steps to follow.They will issue first an Audit Observation Memorandum asking your office to explain why the pertinent procurement has not been posted in a newspaper of general nationwide circulation.

What the COA may issue is a Notice of Disallowance for such contract with patently irreparable omission. That means you cannot pay the Supplier.

I do not agree with this assertion. In the first place, how can their be a Notice of Disallowance when their was no payment yet. What is their for COA to disallow? And why can't you not pay the supplier who is a supplier in good faith? What the COA will do in this specific scenario is to issue an Audit Observation Memorandum asking the procuring entity to explain in writing why this specific procurement has not been advertised in a newspaper of general nationwide circulation. If and when, the procuring entity failed to submit its written explanation or its explanation is not plausible enough, the Auditor assigned in your office may now issue a Notice of Dis allowance. But this is not the end of the story. The Procuring entity may elevate this case to the Regional office of the COA even until the Commission Proper.
avatar
jcolas
Board General
Board General

Male Number of posts : 517
Company/Agency : DepED RO 2
Occupation/Designation : Administrative Officer V
Registration date : 2009-07-02

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by Jovinal on Sun Oct 07, 2012 5:26 pm

Disallowance is one of the possible problems to be encounter by the BAC Members and the HOPE , if they pursue to pay the delivered items despite the omission of newspaper advertisement, ang Tanong, Kaya ba nila lusotan yan? That is 3 milllion. Maiwasan sana yan if there is a proper pre- procurement planning.
avatar
Jovinal
Board Veteran
Board Veteran

Male Number of posts : 438
Company/Agency : LGU- Danao City
Occupation/Designation : City Accountant
Registration date : 2011-11-27

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by jcolas on Mon Oct 08, 2012 3:49 pm

That is the risk that the BAC has to contend with and I agree with Sir Jovinal that that should have been avoided if the BAC has discussed this requirement exensively during the pre-procurement conference. As I have said in my post, the supplier is a supplier in good faith, so there will be no reason for the Procuring Entity not to pay the supplier. The Contract has been signed by both parties, delivery was made and so payment has to be made also. As to the fact that it was not posted in a newspaper of general nationwide circulation, that is for the BAC to explain to the COA.
avatar
jcolas
Board General
Board General

Male Number of posts : 517
Company/Agency : DepED RO 2
Occupation/Designation : Administrative Officer V
Registration date : 2009-07-02

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by engrjhez® on Mon Oct 08, 2012 9:19 pm

jcolas wrote:In the advertisement, we have threshold to follow. It is very clear under Section 21.2.2. For goods, if the ABC is more than two million, then it has to be posted in a newspaper of general nationwide circulation... In your case, your ABC is three million but you have not posted it in a newspaper of general nationwide circulation. So its plain in simple; as Engrjhez has posted, their is a violation and I believe, their really is a violation. What I do not agree is the action of the COA as averred by Engjhez, I believe, they will not rashly issue a Notice of disallowance. Their are steps to follow.They will issue first an Audit Observation Memorandum asking your office to explain why the pertinent procurement has not been posted in a newspaper of general nationwide circulation.

What the COA may issue is a Notice of Disallowance for such contract with patently irreparable omission. That means you cannot pay the Supplier.

I do not agree with this assertion. In the first place, how can their be a Notice of Disallowance when their was no payment yet. What is their for COA to disallow? And why can't you not pay the supplier who is a supplier in good faith? What the COA will do in this specific scenario is to issue an Audit Observation Memorandum asking the procuring entity to explain in writing why this specific procurement has not been advertised in a newspaper of general nationwide circulation. If and when, the procuring entity failed to submit its written explanation or its explanation is not plausible enough, the Auditor assigned in your office may now issue a Notice of Dis allowance. But this is not the end of the story. The Procuring entity may elevate this case to the Regional office of the COA even until the Commission Proper.
The facts are not actually complete and comprehensive. However, the manner of question is such that it appears to me there is an intercession which I presume is the COA. It might be wrong, it might be right. My answer was premised under Sec.33 of PD 1445 or the Auditing Code of the Philippines:

Section 33. Prevention of irregular, unnecessary, excessive, or extravagant expenditures of funds or uses of property; power to disallow such expenditures. The Commission shall promulgate such auditing and accounting rules and regulations as shall prevent irregular, unnecessary, excessive, or extravagant expenditures or uses of government funds or property. (underscoring supplied)
I am not really sure of what the COA "may" issue. Anyway, it is not an absolute prediction. If not a Notice of Disallowance (if inappropriate, please pardon the error), it may be a Notice of Suspension or anything that might prevent further disbursement. It may be an Audit Observation Memorandum. It really depends on a more accurate scenario and the Auditor.

Whatever the action of COA would be, one thing is clear and unequivocal: That there is an irregularity and a violation of a mandatory provision of RA 9184. Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 38
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by jcolas on Tue Oct 09, 2012 2:27 pm

Whatever the action of COA would be, one thing is clear and unequivocal: That there is an irregularity and a violation of a mandatory provision of RA 9184

I fully and wholeheartedly agree with the very eminent procurement practitioner, sir Engrjhez on this observation and woe to those who do not follow the GPRA. It is good for those who are prodding in the dark to read the gppb forum as their are RDV, Engrjhez, Sunriser and other like-minded individuals whose passion for procurement has become immeasurable.
avatar
jcolas
Board General
Board General

Male Number of posts : 517
Company/Agency : DepED RO 2
Occupation/Designation : Administrative Officer V
Registration date : 2009-07-02

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by alpha1 on Tue Oct 09, 2012 2:47 pm

jcolas wrote:Whatever the action of COA would be, one thing is clear and unequivocal: That there is an irregularity and a violation of a mandatory provision of RA 9184

I fully and wholeheartedly agree with the very eminent procurement practitioner, sir Engrjhez on this observation and woe to those who do not follow the GPRA. It is good for those who are prodding in the dark to read the gppb forum as their are RDV, Engrjhez, Sunriser and other like-minded individuals whose passion for procurement has become immeasurable.

Thanks to them!
avatar
alpha1
Active Poster
Active Poster

Male Number of posts : 144
Age : 53
Company/Agency : LGU
Occupation/Designation : Department Head
Registration date : 2010-03-12

Back to top Go down

Re: Posting Requirement as per COA Circular No. 2012-001

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum