COA cites Cebu City for hiring 92 consultants

Local

THE Commission on Audit (COA) has flagged the Cebu City Government’s hiring of 92 consultants in 2024.

It cites procedural lapses and documentary deficiencies that could render P19.8 million worth of contracts questionable under procurement laws.

In its 2024 Annual Audit Report, COA said the city government entered into consultancy contracts amounting to P32.8 million, of which P7.7 million remained unpaid as of year-end.

However, P19.8 million worth of these contracts suffered from violations of Republic Act No. 9184, or the Government Procurement Reform Act.

Auditors said 87 of these contracts, valued at over P17.3 million, were signed only after the consultants had already started rendering services, with P2.8 million already paid despite the absence of legally binding agreements.

“The timing of the contract signing is crucial for the contract’s effectivity as it marks the point at which the contract becomes legally binding,” COA stated in the report.

COA warned that such practice violates procurement protocols and exposes the city to financial risk, as services rendered without perfected contracts “may not legally obligate the city to pay.”

The audit also found that the city hired 14 consultants for ‘vague and generic responsibilities’ such as “planning and coordination,” with a total cost of P3,896,621.85. These functions, COA noted, could have been performed by regular employees.

Additionally, 12 consultants were engaged to perform services that did not meet the legal standard of being “highly technical” or “policy-determining.” One consultant’s role was also flagged as overlapping with the functions of the City Protocol Office, leading to unnecessary redundancy.

Two other consultants, according to the audit, were hired for assignments unrelated to their professional background, raising concerns about qualifications and proper vetting.

COA said these findings raise issues of transparency, accountability, and adherence to procurement rules, particularly in how public funds are managed.

In response, the Cebu City Government defended some of the appointments, citing the urgency of services rendered by the consultants. It acknowledged the lapses and said the Bids and Awards Committee (BAC) has committed to streamlining the hiring process moving forward.

The BAC also pledged to review the qualifications and terms of the consultancy contracts, consult with end-user departments, and consider amendments or even the termination of unjustified engagements.

Despite the explanation, COA reiterated that while consultancy services play a role in government operations, these must always be undertaken in accordance with procurement law to safeguard public funds from irregularities.

“Services rendered without perfected contracts may not legally obligate the city to pay,” COA reiterated in the report.

The city government hired a total of 122 consultants in 2024, deployed across the Office of the Mayor, the Legislative Department, and the Cebu City Medical Center (CCMC).(TGP)