COA uncovers overprice in purchase of cleaning supplies
First few days of the “resurrected” pre-audit by government auditors has now yielded its first result in a Capitol purchase for disinfectant and other cleansing materials.
Conducted by a team of State auditors of the Commission on Audit (COA) Sub-Cluster II, pre-audit findings disclosed the purchase to overpriced and “quite excessive.”
As such, official notification was made to Iloilo Governor Niel Tupas informing of the State auditors’ findings.
Since August 1st, pre-audit is now made on all similar purchases of the Iloilo Provincial Government prior to actual payment to be made.
“We are returning the Disbursement Voucher No. 300-09-08-732 dated August 6, 2009 and the related supporting documents for the payment of approved P.O. No. ADH-79 dated July 3, 2009 in view of the following violations/deficiencies: The Provincial Government could have saved P27,562.50 due to the overpricing of the items purchased in the said P.O. To support the finding, the Audit Team actually purchased the items of the same brand and kind on August 13, 2009,” excerpts of the COA Pre-Audit went.
Capitol in July purchased 120 gallons of Zonrox disinfectant solution, Surf Detergent Powder, Lysol Anti-Bacterial Spray and Green Cross Isoprophyl Alcohol. With payment now sought, COA stepped in to stop any releases.
“It was found out that the four items delivered on July 17, 2009 has a price mark-up amounting to P27,562.50 or 58.43% which is quite excessive or overpriced,” the COA Pre-Audit Findings continued. “The price is excessive if it is more than the 10% allowable price variance between the price paid for the item bought and the price of the same item per canvass of the auditor. Overpricing of purchases, characterized by grossly exaggerated or inflated quotations in excess of the current and prevailing market price by a 10% variance from the purchased item are considered excessive expenditures.”
The News Today (TNT) gathered that in the case of Zonrox, unit cost as per COA canvass was P102 per gallon while Capitol’s price was P159 each. Surf detergent powder is priced at P73.25 in the local grocery while Capitol’s price was nearly doubled at P134. Lysol spray is P324 in the grocery while Capitol’s price was P510 each and Green Cross alcohol with unit cost of P2,070 per box was P3,045 in the Capitol’s price list.
The State Auditors actually purchased said items in the grocery used as basis of the findings.