MANILA - The Commission on Audit (COA) has flagged deficiencies in the procurement of fresh milk by the National Dairy Authority in 2021.

Government auditors noted in the annual audit report on the NDA, incomplete documents marred the feeding programs of the Department of Education and the Department of Social Welfare and Development.

It was noted in the audit report that P108.977 million procurements of fresh milk through competitive bidding were not supported with post-qualification reports.

“Absence of the PQRs on the procurements of fresh milks totaling P108.977 million, posed risk of awarding the contract/s to supplier/s who may not be eligible and responsive to the requirements of the contract/s,” the auditors said.

The report however noted that the the NDA central office has committed to conduct training for its technical working group on its role in the post-qualification phase.

Delivery vouchers amounting to P225.25 million were also supported with deficient documentations such as purchase orders with no signatures of officers.

Auditors also found out that some delivery receipts did not match with the information in the inspection and acceptance receipts.

In one instance, 2,827 bottles were delivered in the delivery receipt, but the inspection and acceptance receipt showed 6,706 bottles.

Fresh milk amounting to P239.122 million were also procured from 9 suppliers through emergency procurement even though they did not qualify as farmers and fisher folk and agricultural cooperatives and enterprises, contrary to the Republic Act No. 11321 or the Sagip Saka Act.

The auditors told the NDA management to ensure that all receipts contain all relevant information before submitting to the accounting division for processing of payments for milk deliveries.

The NDA told the auditors that the 9 suppliers can be considered agricultural enterprises under the Sagip Saka Law.

“If NDA did not tap them, the requirements of the milk feeding programs of the DepEd and the DSWD will be very difficult to fulfill,” the auditors noted.

The NDA audit can be downloaded from the COA website.

A copy of the report was also received by the office of NDA Administrator Farrell Benjelix Magtoto on June 20, 2022.