Advance payments made without mobilization, prior delivery, or actual need
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency paid contractors and suppliers before the work was done, before fuel was actually used, and before goods were delivered, which is contrary to public spending rules.
Why It Matters
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Original Audit Finding Excerpt
"CAR Lower Kalinga DEO Three projects were paid with an advance payment of 15 percent to the contractors even though there were still no mobilization in the project site. 188,567,479.19 II Cagayan 1st DEO Procurements of fuel under various contracts were paid in advance for the period June 2023 to March 2024 even if the utilization of which were made through withdrawal from the supplier’s gasoline station only when the need arises, for the consumption of the District Office and use in the operation of various service vehicles and equipment assigned in the Maintenance Section. 9,763,508.61 II Isabela 3rd DEO Payment for goods was made prior to delivery. 8,980,418.60"