MANILA, Philippines – At least 6 suppliers of the Department of Health (DOH) may soon face sanctions due to missed and defaulted delivery deadlines, said the Commission on Audit (COA).
Based on a 2013 audit report on DOH, the following suppliers did not comply with delivery deadlines:
These suppliers, meanwhile, delivered late twice:
"Records showed that the DOH still accepted the deliveries of the defaulting suppliers despite non-delivery within the maximum 15 calendar days’ extension period, as specified in the [purchase order] contract. The delays were usually incurred by the same suppliers," auditors said.
The procurements which were delivered late amounted to P164.45 million ($3.71 million)* in total, COA said, but the agency did not reveal what the contracts are and how much they involved.
Auditors also noted that liquidated damages were selectively enforced on the contract price of some suppliers.
COA asked why DOH officials did not revoke the contract of Jordan Medical Systems even after it exceeded the 10% limit on liquidated damages in relation to the contract price as required by law.
"There were instances that DOH resolved to extend the delivery without [charging] liquidated damages to suppliers," COA added.
In particular, there was a November 2012 procurement of laboratory equipment worth P38.69 million ($871,828.75) coursed through the Unicef, but as of December 31, 2013, the supplier has yet to deliver equipment worth P28.709 million ($646,846.48).
The equipment meant to be used in a blood bank and HIV testing were already delayed by 278 days.
More recently, DOH rewarded a contract to BLIM's General Merchandise, Gravel and Sand for the procurement of 6,211 family tents meant for the victims of the Zamboanga Crisis, the Bohol earthquake, and Super Typhoon Yolanda (Haiyan) in 2013.
BLIM received the full payment of P6.54 million ($147,418.80) – with each tent worth P12,880 ($290.194) – but the contract required the supplier to deliver within 180 calendar days or on March 19, 2014.
On that date, however, only 508 units (8%) were delivered by BLIM.
“The contractor is already considerably delayed in its delivery of the tents. There is a risk that the contractor may no longer be capable to undertake the remaining balance of undelivered tents thus, liquidated damages is necessary,” COA said. – Rappler.com
*1 US$ = P44.38