NINE years after completing delivery and installation of various appliances and information technology equipment to the Eulogio Amang Rodriguez Institute of Science and Technology (EARIST), supplier Mars Laboratory Instruments Center (MLIC) is finally getting paid albeit, only for a fraction of the P23.85 million it is trying to collect.
The Commission on Audit (COA) banked on the evaluation of its Technical Services Office (TSO) that the reasonable sum due the petitioner is only P3.54 million and approved release of payment only in the said amount.
However, it served notice that EARIST officials who took part in the transaction could face an investigation by the Office of the Ombudsman for violations of RA 9184 or the Government Procurement Reform Act and RA 8292 or the Higher Education Modernization Act.
“The case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate charges against the persons responsible for the transaction, if warranted. The Director, Prosecution and Litigation Office, Legal Services Sector, is directed to forward this case to the Office of the Ombudsman,” the COA declared.
Based on the claim filed by Marciano Laburada, owner of MLIC, EARIST tapped it in November 2014 for the supply, delivery, and installation of a 4-in-1 Multimedia Language Laboratory System for the price of P23.85 million.
On November 25, 2014, the College of Hospitality Management acknowledged receipt and acceptance of the equipment and installation work.
However, after inspection, the audit team issued an Audit Observation Memorandum (AOM) seeking justification for non-compliance with procurement rules.
Auditors noted that the contract had no funding appropriation, was not backed by the needed approval of the Board of Trustees contrary to provisions of RA 8292, and the purchase documents specified brand names of the software and the projector, a violation of RA 9184.
“The contract between EARIST and MLIC may suffer from legal infirmities because there were no funds available …and it was made without the approval of the BoT. But notwithstanding these irregularities, this Commission agrees that the money claim may be granted based on quantum meruit,” the COA Commission Proper said.
It noted that the supplier had no participation in the flagged violation of processes as the fault was attributed only to university officials who approved the procurement.
“It would be the height of injustice to deny the money claim as this would result in unjust enrichment on the part of EARIST and financial loss on the part of MLIC,” the Commission added.
