COA Rules DepEd-Cebu to Pay P484,715 for 2015 Sports Gear
The Commission on Audit (COA) has ruled that the Department of Education’s Division of Cebu (DepEd-Cebu) must settle a payment of P484,715 to Peter Sports and Craft Sales for sports equipment and supplies purchased in 2015. The decision, part of COA’s ongoing oversight of public sector procurement, confirms that the supplier’s claim for payment is valid despite gaps in documentation at the time of the transaction.
Background: The 2015 Cebu Provincial Sports and Cultural Festival
The procurement originated from the Cebu Provincial Sports and Cultural Festival held from January 23 to 28, 2015. Peter Sports and Craft Sales won the competitive bidding for the supply and delivery of sports equipment and supplies needed for the event. DepEd-Cebu approved a budget of P499,000 for the project, and Peter Sports submitted the lowest bid at P484,715, creating a shortfall or difference of a little over P14,000 from the approved budget.
Bid and Delivery
The winning bidder delivered the contracted gear on January 22, 2015, just before the event began. However, payment to Peter Sports did not occur, with DepEd-Cebu stating that it was not privy to the transaction and that no funds were earmarked for the contract. These statements formed the basis of the initial dispute, prompting COA review.
Payment Dispute
Despite the delivery, DepEd-Cebu claimed there were no records guaranteeing payment and that no funds had been allocated for this particular procurement. COA’s examination, however, found documentary evidence attached to the case sufficient to substantiate the amount claimed by Peter Sports, even in the absence of a formal acceptance or delivery receipt.
COA’s Rationale and Key Findings
In its 11-page decision, COA emphasized that the government benefited from the delivery, citing testimony from the General Athletic Manager who confirmed the equipment’s use during the event. The Commission stated that denying payment would result in unjust enrichment on the part of DepEd-Cebu and grave injustice to the supplier. The ruling underscored that, where documents reasonably substantiate the obligation, payment to the supplier should not be unjustly withheld.
The decision was signed by COA Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana, reflecting a formal and unanimous stance from the commission in favor of Peter Sports on the money claim.
Signatories and Implications
The involvement of COA Chairperson Cordoba and Commissioners Pondoc and Lipana highlights the formal nature of the ruling and its potential implications for similar procurement disputes. While the case hinged on the availability and sufficiency of supporting documents, the COA’s conclusion reinforces the principle that suppliers can be compensated for government work where records demonstrate the financial obligation, even when some procedural aspects (like formal acceptance or delivery receipts) are incomplete.
What This Means for DepEd-Cebu and Public Procurement
This ruling serves as a reminder to procurement authorities that delivery of goods and the corresponding financial obligation may stand even amid documentation gaps, provided there is sufficient evidence and demonstrable public benefit. It may prompt DepEd-Cebu and other agencies to strengthen internal controls around vendor payments, contract records, and post-delivery acceptance processes to avoid disputes and ensure timely disbursement of funds.
