The Office of the Vice President (OVP), led by Vice President Sara Duterte, has come under scrutiny following the release of the Commission on Audit’s (COA) 2024 annual report. The audit details over P76.11 million in Property, Plant, and Equipment (PPE) acquisitions in 2023 and 2024, highlighting unusual procurement costs for certain items and lapses in accounting protocol for donated equipment.
Price Check: High-Cost Equipment Acquisitions
The COA report, released on Monday, December 1, provided a breakdown of equipment acquired through purchase or donation. While COA did not flag most acquisitions for pricing, a comparison of the average unit costs to market prices for comparable equipment has raised questions.
| Item | Units Acquired | Total Cost | Average Unit Cost |
| CCTV Systems | 7 | P1.484 million | P212,464.00 |
| MacBook Air Laptops | 2 | P241,685.00 | P120,842.50 |
| Air Conditioning Units | 4 | P294,020.00 | P73,505.00 |
| Multi-Purpose Vehicles (2023) | 10 | P10.284 million | P1,028,400.00 |
High-Priced CCTV Systems
The acquisition of seven “units of CCTV” for a total of P1.484 million, averaging P212,464 each, stands out when compared to commercial market rates.
- Market Context: Online searches for high-end security camera packages for offices typically show complete eight-camera kits retailing for around P21,000 to P22,000. Advanced individual cameras from leading brands are generally priced between P15,000 and P17,000.
- OVP Justification: The OVP defended the purchase, stating the units were CCTV systems intended for Satellite and Extension Offices and “Libreng Sakay” buses. They emphasized that the acquisition was done through proper procurement modes and received no findings from COA regarding the cost. The purchase, the OVP noted, was part of safeguarding assets as recommended by COA.
Premium-Priced Laptops
Two units of Apple MacBook Air were acquired for an average price of P120,842.50 each.
- Market Context: In 2024, the retail price for a base model MacBook Air M2 ranged from P42,200 to P59,700 from authorized resellers. Even high-specification models with upgraded RAM and storage, released in 2022, retailed for around P95,000 to P102,000.
- OVP Context: The OVP noted that the price could exceed P120,000 on the Apple Philippines website if it includes the highest SSD storage possible and additional software.
Clerical Error and Accounting Violation on Donated Equipment
The audit also revealed an error in the recording of 13 units of equipment initially listed as “laptops” valued at P3.92 million (or P301,230 each).
The “Laptop” Error
The OVP clarified that the entry was a clerical error and actually pertained to:
- 12 donated photocopiers valued at P3.82 million.
- One desktop computer for video editing valued at P92,000.
The photocopiers had been leased by the office since 2021 and were donated upon contract expiration.
The Accounting Flaw
Despite the correction, state auditors flagged the OVP for not adhering to the Government Accounting Manual for national government agencies in recording the donation.
- The OVP recorded the photocopiers at the unnamed donor’s estimated value of P3.824 million.
- COA states they should have been recorded at their book value of P2.613 million at the date of donation.
- This error resulted in the OVP overstating its accounts by P1.21 million.
The OVP has since told COA that the adjustment would be recorded in 2025 since the 2024 accounting books had been finalized. COA recommended that the OVP revise its guidelines on donations to ensure proper measurement and coordination with donors on equipment values.
Lapses in Welfare Program Financial Controls
Beyond property acquisitions, the COA audit identified deficiencies in the OVP’s “Mag-Negosyo Ta Day” livelihood program.2
- No Viability Assessment: The OVP violated the program’s manual of operations by approving financial assistance for 138 beneficiaries (128 individuals and 10 NGOs) without assessing the feasibility and viability of their proposed projects.3
- Unliquidated Funds: The OVP failed to liquidate P2.115 million in financial assistance on time, with delays ranging from 2 to 154 days for 42 beneficiaries.
- Insufficient Monitoring: Out of 83 sampled beneficiaries, only 11 received the required monitoring visits within three months of receiving funds. The remaining 72 were visited outside the prescribed period or not at all.
COA has recommended that the OVP ensure project proposals are properly evaluated, monitoring visits are conducted as required, and quarterly monitoring reports are prepared to address these lapses.