PAO paid P4.8M for plan, design of new office despite incomplete requirements —COA

The Public Attorney’s Office (PAO) paid P4.8 million for the construction of its new central office in Quezon City despite the lack of documents in its building plan and design, the Commission on Audit (COA) said in its 2017 report on the agency.

State auditors flagged PAO for partial payments amounting to P1.8 million and P3 million on March 16, 2017 and August 2, 2017, respectively, even without the supporting documents needed for the release of funds.

The PAO entered an agency-to-agency agreement with the National Housing Authority (NHA) and the Department of Public Works and Highways (DPWH) for the architectural and detailed engineering design of the proposed PAO Central Office Building along Commonwealth Avenue.

“Complete documentary requirements to support the Memorandum of Agreement (MOA) entered into by and between the PAO, the NHA and the DPWH for the Architectural and Detailed Engineering Design... were not submitted, inconsistent with the provisions of the MOA, COA Circular No. 2012-001 dated June 14, 2012, COA Circular No. 2009-001 dated February 12, 2009, and Annex H of the Revised IRR of 9184; thus, auditorial, technical and legal review of the transaction was not conducted by the COA,” the report said.

The COA did not specify which agency received the payment.

The IRR of RA 9184, or the Government Procurement Reform Act, mandates the payment of liquidated damages from the supplier for any delayed goods scheduled for delivery until such goods are finally delivered and accepted.

Under the MOA, the NHA will prepare the conceptual design and planning of the project and prepare architectural working drawings and specifications upon the approval of the DPWH.

The DPWH, meanwhile, was tapped to approve engineering plans, specifications and the detailed cost estimates for the entire project.

The COA, however, said the MOA entered with NHA and DPWH “did not include provisions for liquidated damages, being an essential part of a conventional government contract, to answer for delays, inconsistencies or changes in the design of the project.”

Out of the 16 documents required from both agencies, COA further said PAO only received two documents — the schematic design planning and the design development plans.

“Except for Schematic plans showing general locations and spaces from Basement to 11th Level; and the Exterior perspective showing building mass and design theme, all required documents and deliverables by NHA and DPWH where not attached to the MOA, nor submitted to COA for review,” COA said.

The COA added the project should have been completed as of December 2017, but the percentage of completion as of April 2018 is only at 40 percent.

In its recommendations, COA urged PAO to “refrain from processing and approving payments without complete supporting documents; and include in the contract provisions for liquidated damages, to answer for delays, inconsistent or changes in the design.”

The PAO told state auditors that it will adhere to the recommendations and hold meetings with the NHA and the DPWH to fast-track the project.

Sought for comment, PAO chief Persida Acosta said the payment her office made was for the partial compliance of the NHA and DPWH for the project.

"It is for the partial compliance for the partial design being made by DPWH-NHA. P12 million ang total sa MOA. Progressive billing po ang nasa MOA. It is government to government transaction supported by law and auditing rules. Kaya kapag may partial compliance ay may partial payment," Acosta said in a text message.

Acosta said the PAO will submit itself to COA's auditing process. She also mentioned the groundbreaking of their new office on May 30. —KG/BM, GMA News