COTABATO CITY (MindaNews / 20 March) — Certain financial transactions involving the Ministry of Basic, Higher, and Technical Education (MBHTE) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) violated processes and standards set by the Government Procurement Reform Act, according to the preliminary findings of the Commission on Audit (COA).
The investigation by a Special Audit Team (SAT) was ordered by COA Chair Gamaliel Cordoba in September last year following formal complaints against two allegedly anomalous transactions under Education Minister Mohagher Iqbal.
Iqbal, meanwhile, told MindaNews “we are seeking clarification,” noting that the report was marked “strictly confidential” but was already posted by a national newspaper. He said he cannot issue a statement yet as he still has to check with his lawyers.
The first transaction investigated by COA involves ₱1,772,251,519.17 in payments for grade school textbooks for the 2024–2025 period, while the second one concerns payments amounting to ₱449,236,636.20 made to a supplier identified as FEJA Non-Specialized Wholesale Trading for learners’ and teachers’ kits.
Investigators said these transactions bypassed standard review processes and failed to comply with auditing procedures and the procurement law or Republic Act 9184.
The SAT report said 73 disbursement vouchers for learning materials, totaling ₱2,247,023,709.80, were processed and paid based solely on certifications issued by MBHTE officials and staff.
These payments were cleared despite lacking mandatory procurement documents required under RA 9184. The report said the chief of the finance division certified these transactions, allowing the supplier to receive full payment with the approval of the Minister or Deputy Minister, a move the SAT described as being to the disadvantage of the government.
The audit report further detailed material defects in the awarding of 53 contracts worth ₱1,952,923,307.40.
The Bids and Awards Committee allegedly failed to verify the legitimacy of joint ventures serving as bidders, resulting in payments being collected by only a single member of these joint ventures.
Moreover, for 41 projects involving updated learning resources worth over ₱1.47 billion, the MBHTE proceeded with the contracts even if the bidders failed to post the required performance security before signing.
Additional negligence was discovered regarding the delivery of small armchairs worth ₱30.9 million. The MBHTE reportedly failed to impose penalties or liquidated damages amounting to ₱16,068,000 despite a 520-day delay in delivery.
The audit findings came on the heels of a report from the Second Congressional Commission on Education that the region continues to record the highest dropout rate, the lowest literacy rate, and the highest number of non-readers in schools nationwide.
The SAT has warned that the failure of the officials involved to submit comments within the prescribed period will force the finalization of findings based on currently available records.
Last year, Iqbal had categorically denied the allegations of “massive fraud” involving ₱2.2 billion in procurement for learning materials. He maintained that all Ministry transactions, including the acquisition of learners’ and teachers’ kits, strictly adhere to the procurement law and are subject to rigorous COA controls.
He dismissed claims of a ₱1.7-billion “single-day” transaction as “grossly misleading,” emphasizing that the MBHTE utilizes layered financial safeguards to ensure transparency.
He further clarified that no outside individuals or relatives of officials have interfered in the procurement process or program implementation. (Ferdinandh Cabrera/MindaNews)
