The Commission on Audit has ordered the Local Government Unit (LGU) of Malay to explain its existing transaction with a garbage hauling company.
In a COA audit observation memorandum dated February 12, 2018, addressed to Acting Mayor Abram Sualog, the LGU was asked to explain its current transaction with ECOS Sanitary Landfill and Waste Management Corporation.
The company was contracted under PPP scheme for the hauling of solid waste from Boracay Island to the mainland in Barangay Kabulihan, as well as the management of the sanitary landfill.
As part of the contract, the LGU is paying ECOS for the hauling services of the garbage and the tipping fee for the operation of the sanitary landfill, both per metric ton.
From August to December last year, the LGU has already paid ECOS PhP51.7 million in total.
However, after reviewing the transaction, COA stressed that the contract between the LGU and ECOS should have been under the RA 9184, otherwise known as the Government Procurement Act.
“Disbursement on hauling of solid waste and the management and operation of an Eco-tourism, Engineered Sanitary Landfill undertaken as a Public Private Partnership (PPP) activity should have been under R.A 9184, otherwise known as the Government Procurement Act, thus, casting doubt on the propriety, validity, and correctness of the transactions,” as stated on the memorandum.
According to said COA memo, the PPP scheme cannot be observed on the existing LGU and ECOS transaction.
COA stated that it can only be considered as simple procurement services and should have followed the revised rules and regulation of RA 9184 which involved a competitive bidding process.
The COA has also recommended the LGU to “properly evaluate the mode of implementation in performing programs, projects or activities in accordance with existing laws, rules, and consideration.”
The LGU was given 15 days to answer the said COA recommendation.
To note, the said contract has been inked during the time of suspended Mayor Ceciron Cawaling following approval from the Sangguniang Bayan of Malay.