Overview
The Commission on Audit (COA) has ordered the Department of Education’s Division of Cebu (DepEd-Cebu) to pay P484,715 to Peter Sports and Craft Sales for sports equipment and supplies delivered in 2015 for the Cebu Provincial Sports and Cultural Festival.
Background: Bids, Budget, and Delivery
Peter Sports won the bidding for the supply and delivery of equipment and supplies for the festival, which ran from January 23 to 28, 2015. DepEd-Cebu had an approved budget of P499,000, and Peter Sports submitted the lowest bid of P484,715. The delivery of the contracted items occurred on January 22, 2015, one day before the festival commenced, but payment to Peter Sports was never issued.
Why DepEd-Cebu Did Not Pay Initially
DepEd-Cebu asserted that it was not privy to the transaction and that no funds were earmarked for the contract. This led to delays and an absence of a formal payment authorization within the agency.
COA Ruling and Rationale
The COA’s 11-page decision concluded that the documents attached to the case were sufficient to substantiate the claimed amount. Although there was no formal acceptance or delivery receipt, the government benefited from the delivered sports equipment and supplies, as testified by the event’s General Athletic Manager.
In ruling for Peter Sports, the COA emphasized that denying the payment would be unjust enrichment on the part of DepEd-Cebu and would unjustly penalize the supplier who fulfilled the contract. The decision underscores COA’s role in upholding legitimate procurement obligations and ensuring suppliers are compensated for goods delivered in good faith.
Key Considerations
- Delivery took place just before the event; however, formal acceptance documentation was lacking.
- The COA still recognized the value delivered and the government’s benefit from the goods.
- The ruling aims to prevent unjust outcomes for suppliers while maintaining fiscal accountability.
Signatories and Official Result
The 11-page ruling was signed by COA Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana, reflecting the commission’s formal stance on the matter.
Implications for Public Procurement
This decision highlights the COA’s oversight in local procurement and reinforces the principle that delivery and benefit to the government can ground payment obligations even when certain administrative steps are incomplete. DepEd-Cebu is expected to comply with the payment order, which may influence how similar cases are addressed in the future and how agencies document and authorize procurement transactions for local events.
