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Metro Manila (CNN Philippines, September 1) – More than three years have passed, but the Philippine International Trade Corporation has yet to deliver more than $ 1 billion worth of equipment to the Philippine National Police, state auditors have noted.
In its latest audit report on the PNP, the Audit Commission said that the PITC was only able to deliver $ 311 million worth of equipment to the PNP in 2019. The PNP transferred $ 1,347 million to the state company from March to April of 2016 for the acquisition of firearms, mobility equipment and other supplies.
This means that the PITC still owes the institution $ 1.036 billion of undelivered equipment, which according to the COA was comprised of utility trucks, automatic grenade launchers, light personnel carriers, among others.
“The low delivery rate of 23.08 percent and the undelivered equipment frustrate the intention to which the PNP has contracted the services of PITC, that is, to facilitate the procurement process,” said the COA.
Likewise, it said that the pending status of these elements is “contrary” to the objective mentioned in Section 7.3.3 (a) of the Implementation Rules and Revised Implementation Regulations of the Republic Law (RA) 9184 of 2016 .
The section says that contracting entities, as determined by the head of the contracting entity, can subcontract procurement tasks by requesting other government agencies to carry them out by executing a memorandum of understanding, among others, in case the entities “do not have the competence or capacity to make a particular acquisition.”
Likewise, the Commission recommended that the management of the national headquarters of the PNP entrust its Logistics Directorate to demand the immediate delivery of all the remaining equipment.
It should also oblige the PITC to repay the full advance payments or any / all unused balance of completed projects and interest to deposit with the Treasury, COA added.
According to COA, NHQ management said that some representatives met with the PITC in mid-November last year to discuss the status of the funds transfers to be settled, according to the latter’s report. The PITC report indicated that contracts worth $ 316 million in weapons and rifles have already been awarded and acceptance certificates are awaited.
The accounting division is now coordinating with the Logistics Directorate the presentation of these certificates, COA added.
PNP Designated for Dealer Leasing, Rental Rate Concerns
Likewise, the Commission expressed its concern over the use made by concessionaires of PNP’s facilities.
“Forty-seven (47) of 54 concessionaires used PNP’s facilities to operate their businesses despite the lack of properly executed leases,” the report read.
Of the 47 concessionaires, 21 are in the NHQ, 11 in the National Capital Region Police Directorate (NCRPO), one in the Regional Police Directorate (PRO) 3, six in PRO 4B, seven in PRO 5 and three in PRO 11.
The contracts of these dealers, which are mostly dedicated to businesses such as food and beverages, services and merchandising in general, either do not exist or are expired.
The COA also noted that the monthly rental rates for these entities were not adjusted; They are based on rates dating back to 1996, ranging from ₱ 1,200 to ₱ 49,814.
This is because the PNP evaluation committee did not hold any public auctions and did not award leases in accordance with PNP Circular Memorandum 2019-003, the Commission said.
The memorandum amends Circular Memorandum 2016-069, which establishes the guidelines and procedures for offices and units that lease lots, buildings, and spaces owned, occupied, and managed by PNP.
“The absence of a lease agreement detailing, among others, the nature, rates, duration, description and actual measurement of the lot / space under lease, as well as the rights and obligations of the concessionaires with regard to rental rates, raised questions about validity. of the terms and conditions agreed in particular on the monthly rental rate and the total area to be leased, “said the COA.
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