(Photo Credits: Philstar)

I’m no stranger to auditing federal contracts. One of the best jobs I’ve ever had. Why? The things that you discover would amaze you. I get a kick discovering what people do just to beat the system. One time, a consultant has been submitting his invoice for payment. The company has been paying him for years! Hahaha! He included another consultant on the list – who was not doing any work for the company. I would discover that she was the wife. He changed her name. How did I find out? From him when he told me: “Oh! You gotta meet my wife! She’s flying to Boracay next week!” Amfutta! Pinay pala! The last name was different but the first name sounded the same. Pung! Huli ka! He was indicted last year.

Of course, super natural contract stories abound in the Philippines, saten pa right?

Well, here’s one from the Philippine Star. I am sooo loving this editorial talaga. Imagine, kaya pala P380 ang letsugas dahil the design was patented! Leche! And the patent application was filed a week before they bag the deal! San ka pa nun?! Well, here’s the story:

Lucky suppliers
A Philstar Editorial

This has to be one lucky supplier. After bagging a deal worth nearly P700 million to supply 1.8 million ballot secrecy folders for use in the May elections, OTC Paper Supply also submitted the lowest bid of P28 million to supply portable ultraviolet lamps for use in authenticating ballots. Earlier this week, the same company emerged as the winner of yet another contract with the Commission on Elections, this time for the supply of 350,000 stamp pads worth P5.7 million.

There is nothing wrong with the same company winning supply contracts for various items in the same government agency. The company could have a reliable record, and as long as the bidding is aboveboard and the offer meets all requirements, there should be no problem with the award of the contracts. Someone has to supply the equipment needs of government agencies.

OTC’s problem arose following the award of the contract, worth P689.7 million, to supply the ballot secrecy folders made of polypropylene. Comelec commissioners decided that the folders were overpriced at P380 each and cancelled the deal, which had been awarded by the Comelec Bids and Awards Committee through negotiated contract. This was because OTC supposedly patented the design for the folders and no other company could offer such a product. The patent application was filed a week before OTC bagged the deal. An investigation of the bidding has been launched. If a supplier figures in a questionable deal, shouldn’t it be barred from further doing business with the government?

Another lucky company is Smartmatic International Corp., the foreign partner of Total Information Management in the P7.2-billion poll automation deal, which involves the supply of the precinct count optical scan machines for use on May 10. The Comelec has since awarded Smartmatic with other fat contracts: a P519-million deal for the procurement and transportation of ballot boxes nationwide, as well as the latest deal, this time for the tracking and delivery of ballots, for P499,180.327.87. Reports said there was no bidding for the latest deal because it was an emergency procurement.

Elections always provide business opportunities in this country. But transactions must be aboveboard and government procurement laws cannot be set aside. Compliance with those laws must start at the Comelec.

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reynz is one Uragon and a Filipino-American, has many years of public accounting & auditing, broadcast investments, housing tax credits and equity investments as his background. Based in the US, he maintains his personal and humor blog at reyna elena dot com. A graduate of Aquinas U, he went to GWU and Temple U in the United States.