COA calls out PCG for acquiring luxury SUV without DBM nod

Philippine Coast Guard. INQUIRER FILE PHOTO

MANILA, Philippines — The Commission on Audit (COA) has found lapses in the Philippine Coast Guard (PCG) consumption of fuel, oil, and lubricants as rebates obtained by the agency were used to purchase a luxury vehicle without getting the Department of Budget and Management (DBM) approval.

COA’s audit report of PCG for 2022 showed that there were lapses in the P1.451 billion fund allocated to the consumption of the said motor vehicle fluids, particularly in the rebate system — or rewards earned by the agency for picking a supplier.

The Commission highlighted that the PCG, under the Additional Terms and Conditions for the Purchase Orders (POs) of fuel, oil, and lubricants (FOL) in 2022, can request to utilize the rebates by either constructing, repair, maintenance of their FOL facilities, or supply and delivery of FOL-related equipment.

In 2022, the PCG had a total of P14.97 million worth of unclaimed rebates — which was eventually used to buy a Toyota Land Cruiser Prado, a sports utility vehicle (SUV) that qualifies as a luxury car under Malacañang Administrative Order (AO) No. 14.

Under the said administrative order, SUVs which have an engine displacement of 2,700 cubic centimeters (cc) for gasoline-fed engines or 3,000 cc for diesel-fed engines, and those whose engines have more than four cylinders, are classified as luxury vehicles.

The Land Cruiser purchased by the PCG has a V6 engine configuration — or six cylinders in a V-shape format — and has a displacement of 3,956 cc.

“Review of the Sales Invoices of the properties acquired through rebates disclosed that the Toyota Land Cruiser Prado costing P4,999,000.00 (net of discount of P201,000.00), with engine displacement of 3956 CC and engine of six (6) cylinders is considered a ‘luxury vehicle’ in reference to Malacañang AO No. 14,” COA said.

COA also noted that the said vehicle was subjected to bulletproofing which cost around P2.8 million.

“In addition, it bears to note that the aforesaid vehicle was likewise requested for bulletproofing amounting to P2,800,000.00. CG-4 explained that the acquisition of Toyota Land Cruiser Prado is deemed necessary for the PCG to ensure safe and secured transportation of the Commandant and to uphold PCG’s mandated functions,” it added.

COA urged PCG to secure an approval from DBM first regarding the acquisition of the vehicle, and submit it to the Office of the Auditor afterwards.

“We recommended and Management agreed to secure a post facto approval from the Secretary of Budget and Management on the acquisition of the Toyota Land Cruiser Prado pursuant to AO No. 14 s. 2018 and submit the same to the Office of the Auditor,” COA said.

As to the other items flagged, COA said that P4.698 million of FOL-related payments do not have proof of deliveries or receipts.  The Commission asked PCG to submit these documents to avoid an issuance of a Notice of Suspension or eventually, disallowance of the said allocation.

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