P4.8M paid to Pasay consultants questioned
MANILA, Philippines—The Commission on Audit is questioning Pasay City’s payments to some of its consultants last year although there were no contracts, accomplishment reports, certificate of attendance or proof that these consultants really rendered service to the city.
The COA said the payments made to 65 consultants, which amounted to P4.83 million, were not supported by consultancy contracts or agreements, while the contracts of four consultants were not signed.
In 2010, Pasay City hired 140 consultants who are considered experts in various fields and assigned them to different city departments.
COA said the accomplishment reports were supposed to show that the consultants had done what they were paid for.
“All payments were not supported with outputs/accomplishment reports, certificates of attendance or proof of services rendered duly signed by the authorized official. These documents are proof that indeed they performed/rendered their services in accordance with the contract,” COA said in its 2010 audit report on Pasay City.
It said consultants might not be required to go to work daily, but they have to submit accomplishment reports to document their performance.
COA also found that 20 consultants were overpaid by P225,595 since they were paid for services they did before their contracts were signed.
In computing their salaries, the signing dates of their contracts were not considered, COA said. It also said the overpayment included excess compensation to five consultants where the rate used differed with the rate stipulated in the contract.
It further noted that 49 consultants were coterminous with the former city mayor, but were given appointments instead of contracts in 2009. It also found that the payments to the consultants were not subjected to withholding taxes, in violation of the National Revenue Code.
The COA called on the Pasay City government to strictly follow government guidelines in hiring consultants, and to submit the contracts and accomplishment reports of its consultants. The city accountant should also strictly implement the regulation on withholding taxes, it added.
In response, the officer in charge of Pasay’s Human Resource Management Office (HRMO) told the COA that in mid-2009, the practice of issuing coterminous appointments to consultants was stopped, and consultancy agreements were entered into instead. The official also said consultants were not required to report to work daily and were on an “on call” basis.
But no Pasay official could explain why the 65 consultants did not have a contract agreement, the COA said.
The city government vowed to follow the Bureau of Internal Revenue’s regulations on withholding taxes. The HRMO also said it was reviewing the contracts of the overpaid consultants and computing the amount to be refunded.
