COA enjoins financial institution to follow procurement rules

/ 04:21 PM March 28, 2019

MANILA, Philippines – The Commission on Audit (COA) has called out the Development Bank of the Philippines Leasing Corporation  for not following the rules on procurement of office supplies.

According to the audit report, DBP Leasing Corporation  acquired items not in accordance with the prescribed methods according to Revised Implementing Rules and Regulations (IRR) of R.A. 9184 or the Government Procurement Reform Act.


As a recommendation, COA said that the agency should refrain from purchasing equipment on several instances through the year, especially if it can be purchased through the Procurement Service of the Department of Budget and Management (PS-DBM) using the Philippine Government Electronic Procurement System (PhilGEPS).

“Stop the practice of staggered purchases of common-use supplies available in the Procurement Service-Department of Budget and Management (PS-DBM) through the Petty Cash Fund and by reimbursements,” COA said in its report.


“Purchase common-use items on a quarterly basis by utilizing the PhilGEPS, and purchase  from other suppliers only after the PS-DBM has issued a Certificate of Non-Availability of Stocks for ordered items and within the period  indicated in the  Delivery Receipt,” the commission added.

The PS-DBM was created to serve as a centralized agency tasked to purchase common office supplies such as papers and pens for government agencies to give the government advantage because bulk orders are often priced lower.

For items not available with PS-DBM, COA reminded DBP Leasing Corporation to ensure that the purchase coincides with the prescribed procurement methods.

“For procurement of items not available at the PS and allowed by the PS-DBM to be procured outside, ensure that the requirements for “shopping” is adhered to,” COA explained.

“As required under Section 7 of the IRR of RA No. 9184, meticulously and judiciously plan procurement of end-user requirements to be included in the APP and ensure that all procurements are in accordance with the APP,” the report added. / gsg

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TAGS: COA, Commission On Audit, DBLPC, Development Bank of the Philippines Leasing Corporation, Philippine news updates, procurement
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