MANILA — Initial results of a special audit conducted by the Commission on Audit (COA) on procurements within the Ministry of Basic, Higher, and Technical Education (MBHTE) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) have flagged possible irregularities involving the disbursement of about P2.2 billion for learning materials.
The Special Audit Team (SAT), deployed to BARMM by COA Chairman Gamaliel Cordoba in August last year, examined two instances of questioned payments totaling P2,221,488,155.57.
The first case involved same-day textbook disbursements for various grade levels in the 2025–2026 school year, totaling P1,772,251,519.17. The second involved payment to a single supplier, FEJA Non-Specialized Wholesale Trading, for the procurement of Learner’s and Teacher’s Kits worth P449,236,636.20. The audit team noted that these transactions allegedly bypassed certain review procedures and may have violated procurement and auditing rules.
The audit findings come amid concerns about the performance of the education sector in BARMM, as reflected in the latest report of the Second Congressional Commission on Education (EDCOM 2).
According to the audit investigation, 73 disbursement vouchers (DVs) for the procurement of goods amounting to P2,247,023,709.80 were processed and fully paid based on certifications issued by concerned MBHTE officials and employees despite the reported absence of several required procurement documents under Presidential Decree No. 1445 and the 2016 Revised Implementing Rules and Regulations of Republic Act No. 9184, also known as the Government Procurement Reform Act.
The transactions were certified by the head of the finance division, while the DVs were approved for payment by the minister or the deputy minister.
“Due to the certifications made, the transactions were paid despite the non-submission of standard supporting documents, to the disadvantage of the government,” the SAT report said.
The report also noted that concerned officials were given an opportunity to submit comments.
“Failure to submit comments within the prescribed period shall constrain the SAT to finalize its findings based on the available records,” it said.
Among the report’s other findings were material deficiencies in the awarding of 53 contracts amounting to P1,952,923,307.40. These include the Bids and Awards Committee’s acceptance of bids that allegedly failed to properly identify joint ventures (JVs) as bidders.
As a result, the contract was reportedly awarded to only one JV partner instead of the joint venture entity, which the audit team said could misrepresent the corporate structure and may affect accountability in case of contract violations.
For 41 projects involving the procurement of colored learning materials and updated educational resources for basic education, totaling P1,478,258,182.35, the audit team said MBHTE proceeded with contract execution without ensuring compliance with the requirement to post a performance security prior to contract signing.
In another instance, the procurement logistics contract for the Education Summit 2024, valued at P4,733,975, was awarded to CNX Mini Mart and executed on October 30, 2024. The SAT noted that the performance bond and the corresponding sales invoice issued by Travellers Insurance Corporation were undated, while the notarization portion was left blank. The report said the supplier should have been subject to post-disqualification procedures.
The SAT also said MBHTE did not impose liquidated damages amounting to P16,068,000 for the reported 520-day delay in the delivery of goods under a contract for small armchairs for primary school learners worth P30,900,000. This, the audit team said, may be inconsistent with provisions of the Government Procurement Reform Act and the terms of the contract agreement.
The contract for the armchairs was awarded to the lone bidder, Millennial Tech Computer and Office Supplies, with a delivery schedule of 60 days, subject to extension on meritorious grounds.
However, the audit team said delivery was completed only on February 12, 2025—about 520 days after the scheduled timeline—without documents showing an approved suspension or extension of the contract period.
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