COA maintains P88-M disallowance vs ex-Cagayan de Oro Water District officials

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COA maintains P88-M disallowance vs ex-Cagayan de Oro Water District officials
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State auditors deny the ex-COWD officials' appeal seeking relief from four notices of disallowance over 2008 deals

This is AI generated summarization, which may have errors. For context, always refer to the full article.Franck Dick Rosete/RapplerState auditors deny the ex-COWD officials' appeal seeking relief from four notices of disallowance over 2008 deals

In its 15-page decision released on Tuesday, November 5, the COA denied the COWD officials’ appeal as they sought relief from the four NDs issued against payments made to contractors for its water supply upgrade project and bulk water supply deal. Geo-Transport and Construction Inc was the contractor for the Water Supply System Phase III Improvement/Expansion Project-Main Service Area and Phase III Improvement/Expansion Project-Lateral Improvement Project.The COA disallowed P47.96 million in the contract with Rio Verde, which represented payments for the transfer of the original take-off point which added three kilometers of pipes, and supposedly resulted in reduced water pressure.

The COWD officials said in their appeal the the decision to use reinforcing steel bars was made in good faith after they had consulted with LWUA officials. They insisted that there was nothing anomalous about compensating a contractor for losses it incurred on costs that were not covered by the metallic pipe index.

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