COA: Makati LGU should pay souvenir maker P1.12-M despite bidding issues

/ 03:24 PM December 13, 2019

MANILA, Philippines – The Commission on Audit (COA) has ordered the local government unit (LGU) of Makati City to pay a souvenir-making company a sum of P1.120 million, despite certain issues in the bidding process.

In the decision dated November 15, COA said that Makati’s LGU under incumbent Mayor Abby Binay should compensate OVT Graphic Line, Inc. (OVT) for the giveaways it produced for the city’s Sampiro de Makati Festival Grande Parade despite Makati’s insistence to defer payment due to the absence of the signatures of Binay’s brother, former Makati Mayor Junjun Binay.


“Verily, the procurement of materials and giveaways suffers from legal infirmities.  However, the city cannot evade payment and unjustly enrich itself, especially when it admitted that OVT actually delivered the materials and giveaways,” COA said in the decision signed by its chair Michael Aguinaldo and Commissioners Jose Fabia and Roland Pondoc.

According to the commission, Makati’s Bids and Awards Committee launched a public bidding last June 2, 2015 for the said project, eventually awarding the contract to OVT as it was lower than the bid made by its competitor, which amounted to P1.122 million.


The materials were delivered days after to the Makati Tourism Office and were verified to have passed quality and quantity specifications.  This led to OVT being issued a Certificate of Acceptance dated June 15, 2015.

However, when OVT was asking then Makati Mayor Romulo V. Peña in March 2016 for the payment, the city said that the payment cannot be made because Junjun Binay’s signature was not made.

Peña, as Makati’s vice mayor in 2015, succeeded Junjun Binay as mayor after the Office of the Ombudsman dismissed him from service in October 2015.

READ: Ombudsman orders dismissal of Junjun Binay

“This Commission rules that the OVT should also be compensated, based on quantum meruit, which entitles a party to payment ‘as much as he reasonably deserves,’ for the materials and giveaways delivered to the city which were used for the Sampiro de Makati Festival Grande Parade,” COA explained.

With the decision, COA said that it would forward the case to the Office of the Ombudsman, who may deem if appropriate charges should be filed against former officials liable for the transaction.

Edited by MUF
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TAGS: COA, Commission On Audit, INC, Junjun Binay, Makati City, Mayor Abby Binay, OVT, OVT Graphic Line, Philippine news updates, Romulo Peña, Sampiro de Makati Festival Grande Parade
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