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Pagcor bought P8.2 M worth of bottled water in 2011 without public bidding—COA

By: - Reporter / @MAgerINQ
/ 12:40 AM July 04, 2012

MANILA, Philippines—The Commission on Audit   has called the attention of the  Philippine Gaming and Amusement Corporation (Pagcor) for “shopping” bottled mineral water worth more than P8 million last year without  public bidding.

Based on its 2011 audit report, COA discovered that the state gaming-firm spent a total of P8.2-million worth of bottled mineral water and another P1.79 million worth of five-galloon water for its three casino branches – Pavillion, Heritage, and Paranque.

“The procurement of bottled mineral water at the three CF (Casino Filipino) branches  was made thru shopping notwithstanding the amount involved exceeded the threshold provided under Section 10 of the Revised Implementing Rules and Regulations of Republic Act No. (RA) 9184,” the report said.


Section 10 of RA 9184 provides that “All procurement shall be done through competitive bidding, except as provided for in Article XVI, which comprises the various alternative methods of procurement…”

“Our audit disclosed that  the casino branches  purchased bottled mineral water and  five gallon water  thru shopping and  thru canvass from three suppliers, while the total cost for these  items  procured during the year reached more than the threshold for small value procurement of P500,000,” the report  added.

The report showed that the Pavillion branch spent P3, 850, 127.42  for bottled  mineral water  and  P1, 289,779.20 for five-gallon water;  P2, 818, 636.80 million and P507, 343.68  in Heritage for bottled mineral water and  five-gallon water, respectively;  and  P1, 577,779.11  million for bottled mineral water in Paranaque branch.

“We are concerned that the current practice of the Branch may have provided undue advantage and competitiveness in the procurement process,” COA said.

The Commission then recommended that Pagcor now being headed by its chairman, Cristino Naguiat Jr., to justify the mode of  procurement selected for the drinking water, include the  procurement in its Annual Procurement Plan and comply with Section 10 of RA 9184.

“If the total amount in the APP is more than the threshold amount of P500,000, procurement should be through competitive bidding,”  said the report.

Since the procurement of bottled drinking water in the casinos exceeds the threshold of P500,000,  Pagcor’s Procurement and Planning Review Committee has agreed to conduct  public bidding.

Originally posted: 01:42 pm | Tuesday, July 3rd, 2012


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TAGS: bottled mineral water, casino, Casino Filipino, COA, Pagcor
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