MANILA - (UPDATED) The Commission on Audit flagged the Public Attorney’s Office for releasing a total of P4.8 million for the engineering design of their new central office building to be constructed along Commonwealth Avenue in Quezon City.

In its 2017 audit report, the COA said documentary requirements to support the Memorandum of Agreement entered into by and between the PAO, the National Housing Authority and the Department of Public Works and Highways for the engineering design of the building were not submitted.

Among the required documents not submitted were probable construction costs, quantity and cost estimates, construction schedule, bid documents, among others.

The COA said the non-submission of documents is inconsistent with the provisions of the MOA as well as COA circulars.

“Except for schematic plans showing general locations and spaces from basement to 11th level, and the exterior perspective showing building mass and design theme, all required documents and deliverables by NHA and DPWH were not attached to the MOA, nor submitted to COA for review,” the audit report said.

A total budget of P12 million was allocated by the PAO for the architectural design and engineering plans which should include the complete technical specifications of the building as well as the necessary bill of materials.

The P4.8 million funds released by PAO covered 2 checks worth P1.8 million as down payment for the detailed architectural and engineering design and P3 million for the schematic design and design development phases.

The COA noted that 40 percent of the work has been completed as the audit report is being written.

The project started March 2017 with a target completion date of December 2017.

The COA also said the MOA did not include provisions for liquidated damages to make contractors responsible for delays, as stated in the Implementing Rules and Regulations of Republic Act No. 9184 or the Government Procurement Act.

In its recommendations, the COA said the NHA and DPWH should immediately submit all the documents and the PAO should refrain from approving payments without supporting documents and include provisions for liquidated damages.

“Management commented that they will adhere to audit recommendations. A series of meetings with the NHA and DPWH was held to fast track the project,” the COA said.

PAO on defense

PAO chief Atty. Persida Acosta, meanwhile, explained that the P4.8 million payment covers part of the project that has been completed.

"Progressive billing po ang nasa MOA between PAO and NHA. It is govt-to-govt transaction supported by law and auditing rules. Kaya kapag may partial compliance ay may partial payment," she said in a statement.

(Progressive billing was specified in the MOA between PAO and NHA. It is govt-to-govt transaction supported by law and auditing rules. If there is partial compliance, there should be partial payment.)

PAO will "submit comments to COA as normal course of auditing process," Acosta said.

She also mentioned that a tentative groundbreaking for the project has been scheduled on May 30.