Vico Sotto’s written defense of a questioned Pasig City appliance purchase proved decisive after state auditors lifted the disallowance tied to the more than P45 million transaction and cleared the officials earlier held liable.
The Commission on Audit en banc reversed the notice of disallowance after reviewing the Pasig City government’s explanation. The case stemmed from the city’s public bidding for the supply and delivery of appliances under its Alay Pasasalamat Project. The city government paid the supplier more than P45.053 million, net of tax, following the procurement process.
Auditors flagged the transaction in an Audit Observation Memorandum, citing amendments in the purchase orders and the absence of signatures from Sotto or the city administrator. The documents were signed by Assistant City Administrator Diego Luis Santiago, prompting audit questions on the authorization of the procurement papers.
A notice of disallowance was later issued naming Pasig Vice Mayor Robert Vincent Jude “Dodot” Jaworski Jr., Santiago, and City Accountant Juvy Cuenco as liable officials. Pasig officials told auditors that Santiago had authority from the Office of the Mayor to sign internal and external correspondence for the Office of the City Administrator.
Sotto later issued a clarificatory memorandum confirming Santiago’s authority to sign procurement documents. He also said the city accountant acted in good faith and that the transaction had been completed with the required documents.
In lifting the disallowance, COA cited Government Procurement Policy Board Non-Policy Matter No. 049-2017, which allows the head of a procuring entity to delegate authority to a duly authorized representative. COA said Sotto’s memorandum provided the basis for the city government’s position that Santiago was authorized to sign procurement-related documents, leading to the clearing of the officials named in the case.
