COA scores Capitol’s delayed release of P10.8M agri equipment to beneficiaries

By Gerome Dalipe IV

What’s taking so long for the Iloilo Provincial Government to release agricultural equipment worth P10.832 million to the intended beneficiaries?

The Commission on Audit (COA), in its annual audit report for 2022, flagged Capitol’s long delay in the distribution of the farm equipment procured in 2021.

“(The) delayed attainment of increased economic return and exposed the equipment to deterioration due to the effect of elements and non-usage,” read the COA report.

The Province procured P10.832 million worth of farm equipment charged under the 20 percent Development Fund for the farm mechanization support project.

They were intended for distribution to farmers’ associations or cooperatives, local government units, and other stakeholders to improve production efficiency and increase their income.

These equipment include eight units of Power Tiller Cultivator worth P1.95 million; 20 units of rice thresher worth P2.4 million; 20 units of hand tractor worth 2,780,000; and 10 units of mechanical corn sheller and 10 units of hermetic cocoon worth P3.7-million, which totaled to P10,832,000.

A perusal of the project resume revealed that the target implementation period of the project was set from January to December 2021.

A review of the disbursement vouchers for the payment of this equipment disclosed that the items were delivered by the concerned suppliers as early as February 28, 2022, until April 25, 2022.

However, a verification of the status report as of December 31, 2022, revealed that the farm equipment had not yet been distributed to the intended beneficiaries, as evidenced by the Memoranda of Agreement and the Deeds of Donation between the two parties, which were not yet signed.

Based on the timeline, the auditors said there was a reasonable period of about seven months from the start of the bidding process in September 2021 until the completion of the delivery of all the equipment by April 25, 2022.

Within such time, the auditors said the beneficiaries could have submitted the required documents, and for the implementing office to have evaluated the same and re-assessed the possibility of replacing the identified beneficiaries.

“While it is understandable that the conduct of public bidding had been greatly hampered by the pandemic, however, the non-distribution until the end of the year of the agricultural/farm equipment that was already delivered as of April 25, 2022, leaves the impression that the project was neither well-planned nor implementation-ready,” read the COA report.

Of the 38 beneficiary municipalities, the focal person from the Provincial Agriculture Office said that only seven submitted the complete requirements needed for the transfer of agricultural equipment.

During the exit conference, the agriculture office said the submission of the complete documentary requirements was solicited from the identified beneficiaries even while the bidding process for this equipment was ongoing.

He assured that similar projects in the future will not only be well-planned and procurement-ready but implementation-ready to maximize the benefits of the projects and avoid delays in the implementation.

The Provincial Agriculture Office informed auditors that some of the equipment was already distributed and further distribution is ongoing. They are working to finish the distribution as soon as they can.

Ironically, it took about seven months – from April 25, 2022, to November 4, 2022 – for the implementing office to submit the proposal for the change in the list of beneficiaries to the Sangguniang Panlalawigan.

The delay could have been minimized had the Capitol ensured that the programs were funded by the 20 percent Development Fund.

“The delays deprived the constituents of the immediate benefits including but not limited to land and labor productivity as well as increased economic return that could have been already derived from the use of the agricultural equipment,” read the COA report.

Likewise, equipment was also exposed to deterioration due to the effects of the elements and non-usage, the auditors said.

State auditors urged the Provincial Agriculture Office to require the eligible beneficiary LGUs to hasten the submission of the needed documents and fast-track the assessment.

“Immediately distribute the equipment to the beneficiary-LGUs once the documentary requirements are complete and ensure that future similar projects are not only well-planned and procurement-ready but also “implementation-ready” to minimize delays and maximize the benefits that could be derived from the projects,” the auditors said.