By Henry Empeño | May 9, 2025

THE Commission on Audit (COA) has disallowed P50.8-million worth of medicine purchases and P45.6 million in infrastructure projects undertaken by the Tarlac City government in 2017 to 2018 and recommended that Mayor Maria Cristina C. Angeles and other city officials be held liable for gross violations of procurement laws and regulations.

COA made the recommendations in two fraud audit reports covering the procurement by Tarlac City of various supplies and services in the calendar years (CY) 2016 to 2018, purchases of drugs and medicines in CY 2017 to 2018, and a road asphalting project in CY 2017 to 2018.

In Fraud Audit Report 2025-003, the COA said that six procurement contracts for medicines and medical supplies totaling P50,833,206.65 were fully paid based on certifications made by concerned City official and employees despite incomplete documents as required under Section 4(6) of PD No. 1445 and the various provisions of the 2016 RIRR of RA No. 9184.

It held Angeles liable for approving the disbursement vouchers; City Accountant Roland S. Domingo for certifying that supporting documents were complete, even if not; and Executive Assistant III/BAC Secretariat Cesarina S. Macuha for failure to ensure submission of bidding documents.

The same investigation found out that a total of P843,900 worth of medicines was procured outside the approved list of the Philippine National Formulary (PNF), in violation of EO No. 49, s. 1993, and Department of Health AO No. 2012-0023, as amended, both of which require exclusive reliance on the PNF as the basis for procurement of drug products.

The COA also noted that three procurement contracts for drugs and medicines were named “Angel” or “Anghel” in association with the name of Mayor Angeles. “This is considered unnecessary and is subject of administrative disciplinary action provided under Section 127 of Presidential Decree (PD) No. 1445 without prejudice to the filing of a criminal action, if warranted by existing laws,” the COA said.

It also noted that checks issued for the payment of five contracts totaling P33,853,885.40 were dated earlier than the preparation of the corresponding DVs (disbursement vouchers), which is a violation of government accounting system.

In the same fraud audit report, the COA revealed that Mayor Angeles awarded contracts for four infrastructure projects worth P45,641,216.02 to 3-Sides Builders and Trading Corporation, but 71.12% of the materials used in these projects were sourced from Northern Builders, a company owned by her spouse, Victor Manguerra Angeles.

This, the COA pointed out, “(gave) rise to direct or indirect material financial interest which is strictly prohibited in Section 108 of PD No. 1445, Section 53, Book V/Title I/Subtitle B/Chapter 9 of EO No. 292, Section 89(a)(1) of RA No. 7160, Section 7(a) of RA No. 6713 and Section 3(h) of RA No. 3019.”

The “significant lapses, inconsistencies and deficiencies…identified in the procurement proceedings and disbursements of four infrastructure projects totaling P45,641,216.02…rendered the transactions irregular as defined in Item 3.0 of COA Circular No. 2012-003,” the COA added.

In Fraud Audit Report No. 2025-001, meanwhile, the COA said it found that the procurement in CY 2018 of 200 pieces of 4- ft. tall lightings/decorative lightings “was not in accordance with the procurement process required under RA 9184 and other pertinent laws, rules and regulations thereby casting doubt on the validity of the transactions and is deemed disadvantageous to the government.”

As the City Mayor and HoPE (Head of Procuring Entity), Angeles is liable pursuant to the provisions of PD 1445 and Section 305 (1) of RA 7160, the COA said.

RA 7160, or the Local Government Code of 1991, mandates that “fiscal responsibility shall be shared by all those exercising authority over the financial affairs, transactions, and operations of the local government units.” 