Maria Cristina N. Poserio: Department of Environment and Natural Resources

Republic of the Philippines
1 DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

Community Environment and Natural Resources Office
Region I
DENR Building, Bitalag, Tagudin, Ilocos Sur
FOR : MARIA CRISTINA N. POSERIO

Supervising Auditor IV
NGS Cluster 6 & 8
: DAISY P. SOLIAN
State Auditor IV
Audit Team Leader
DATE : November 26, 2021
SUBJECT : Procurement and awarding of contracts/ NGP Contracts – Auditorial

Contract Review.
COMMENT
This has reference to the Audit Observation Memorandum (AOM) No. 21- 003 dated
October 20, 2021 from your good Office citing errors/deficiencies found out by the COA
Technical Audit Team regarding the approved contracts or Memorandum of Agreement entered
into by and between PENRO, Ilocos Sur and POs/LGUs as partners for the implementation of
NGP projects.
The COA Technical Audit Team noted the following deficiencies as the approved
contracts or Memorandum of Agreement were found wanting of necessary documents
particularly in the legal and technical documents. Thus, it precluded the determination whether
there was participation of local communities as prescribed in the GPPB (CPPM) in which the
CPPM issue by GPPB was anchored in Section 53.12 of the Revised IRR of RA 9189. Thus,
Section 3, paragraphs 3.1.1 and 3.1.2 of DENR Memorandum Circular No.: 2013-06 was not
fully complied and the family approach as strategy in the identification of participants in the
procurements through Community Participation for LGU/Barangay as partners was not specified
in the provisions of the issued FMB TB 30 and its revisions.
In view of the foregoing, the CENR Office, Southern, Ilocos Sur, respectfully manifests
and submits its comment to the aforementioned audit observations.
Approved contracts or Memorandum of Agreement were found wanting of necessary

documents particularly in the legal and technical documents. Thus, it precluded the
determination whether there was participation of local communities as prescribed in the GPPB
(CPPM) in which the CPPM issue by GPPB was anchored in Section 53.12 of the Revised IRR of
RA 9189. Thus, Section 3, paragraphs 3.1.1 and 3.1.2 of DENR Memorandum Circular No.:
2013-06 was not fully complied and the family approach as strategy in the identification of
participants in the procurements through Community Participation for LGU/Barangay as
partners was not specified in the provisions of the issued FMB TB 30 and its revisions.
The procurement process used by this Office in contracting with the LGU’s is agency to
agency procurement process. On the other hand projects contracted with PO’s/IP’s used
negotiated procurement – community participation. Considering that under DMC 2013-06 does
not prescribed the legal requirements as well as technical requirements to both procurement
process personnel in charge completed the documents usually attached to a contract. Thus, the
latter presumed that the documents previously submitted were sufficient enough without being
mindful of the requirements laid down in Adoption of Procurement Manual. However, in both
procurement process the contracting partners involved participation of the community. They
encouraged community participation by having them as their co-helper in the management and
maintenance of the sites with the aim to have a sustainable natural resources. In every project
entered into with the LGU’s and PO’s/ IP’s the primordial consideration is always the
welfare/well-being of the people in the community.
It must be stressed, that contracts entered into with the barangay local government unit
and people’s organization might not specifically state all the required information but it does not
necessarily mean that there are discrepancies or inconsistencies in the implementation of the
same. There might be shortcomings on the required documents but its purpose is significantly
attained.
Based from the foregoing, this Office appreciates the Commission Audit Team for
reminding us to be more aware with the rules and regulations relative thereto specially the
Procurement Manual. Thus, this Office commits to revisits, scrutinize and study the applicable
guidelines in the engagement of LGUs and POs for a more efficient implementation of the
government programs and advocacies. To review and evaluate DENR Memorandum Circulars
and FMB Technical Bulletins and inquire clarifications to the department policy making body
for a clearer and consistent application of laws, rules and regulations on procurement through
community participation and agency to agency procurement process likewise, to include all the
necessary details in every contract in order to avoid the same problem/s in the future.
From the foregoing, may we humbly pray that this Comment on the Audit Observation
made by the Audit Team as per AOM No. 21-003 be given favorable consideration.
DANILO P. MANALOTO
CENR Officer

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Republic of the Philippines

1 DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

FOR : MARIA CRISTINA N. POSERIO

DATE : November 26, 2021

SUBJECT : Procurement and awarding of contracts/ NGP Contracts – Auditorial

Approved contracts or Memorandum of Agreement were found wanting of necessary

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