Republic of the Philippines

BATANGAS STATE UNIVERSITY

Pablo Borbon Main I, Batangas City
COLLEGE OF ARTS AND SCIENCES

NAME: Rosales, Jene Krizennielle C.

SECTION: BSC 2102
SUBJECT: Life and Works of Rizal (GED 103)

COA concerns DICT's purchasing ICT devices totaling P170.2 million from
construction firm Lex-Mar, the highest bidder.

FACTS:
• PERSONS INVOLVED AND THEIR REASONS:
I. The Commission on Audit (COA), Because they were the ones who
audited and discovered the overpricing, and they also identified that the
firm being sold was a construction company, it was even more
concerning.
II. The Department of Information and Communications Technology
(DICT), procured laptops, tablets and pocket wi-fi devices purchasing
for P170.273 million worth of electronic devices from Lex-Mar General
Merchandise and Contractor.
A. DITC Secretary Gregoria Honasan II, where he received the DITC
notice letter, and they also defended Lex-Mar's Company to operate
and provide gadgets legally.
B. Lex-Mar General Merchandise and Contractor, they are the Highest
Bidder who won the DITC devices supply procurement of –

• AGENDA:
I. Boost the ICT-enabled education:
P50.77 million in gadgets for students and teachers at San
Juan's Pinaglabanan Elementary School.
II. To prevent the spread of the COVID-19 virus as more
agencies and local governments rely on the DICT's
technological knowledge and activities to handle the growing
demand for digitalization, interconnection, and public
cybersecurity awareness during this new normal.
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Main I, Batangas City
COLLEGE OF ARTS AND SCIENCES

ISSUE/ ISSUE OF THE EVENTS/NEWS:

The COA criticized DITC for obtaining P170.273 million in electronic
gadgets from Lex-Mar General Merchandise and Contractor. The DITC was even
able to defend their issue. DICT Secretary Gregorio Honasan II stated that Lex-
Mar was "found to be a technically, legally, and financially capable supplier" and
that laptops, Tablets, and Pocket Wi-fi's procured the devices through the
Emergency Cases of 2016 Revised Implementing Rules of Republic Act 9184.
DICT claimed that Lex-Mar is also a wholesaler of office supplies and office
equipment, including the collection of computer units and tablets. In addition, its
recent financial statements also supposedly indicate that its income is "capable of
sustaining its operations, costs, and expenses.” One is the purchase of P50.77
million in technology for students and instructors at San Juan's Pinaglabanan
Elementary School:
1,000 laptops, each priced at P40,600
1,500 tablets at the cost of P4,780 each
The cost of each of the 1,001 pocket wifi units is P3,000.

The local governments of San Juan and Makati will benefit from two more
projects totaling P118.49 million:
Electronic Devices spent a total of P28.87 million on 6,250 tablets, each
costing P4,780.
Tablets spent P89.62 million on 18,750 tablets at P4,780 each.
The information technology agency further rationalized its acquisition by
claiming that the laptops and gadgets will help its partner local government units
enable distance learning during the COVID-19 epidemic. “The ICT devices
distributed by LGUs to student beneficiaries improve (sic) the delivery of services
in the education sector.” The COA is responsible for “promulgating accounting and
auditing rules and regulations, including those for the prevention and disallowance
of irregular, unnecessary, excessive or unconscionable expenditures or uses of
government money and properties.” COA (2021).
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Main I, Batangas City
COLLEGE OF ARTS AND SCIENCES

PERSONAL TAKE ON THE NEWS/EVENT:

ACCORDING TO THE COA LETTER, the COA first stated that there is no
confirmation about this in Lex-Mar’s Certificate of Registration with the Bureau of
Internal Revenue and its Permit to Operate. But how did the DITC pass and
resolve their issue two days later, when they fought about their supplier and were
deemed to be technically, legally, and financially capable.
On the subject of DITC, the COA personnel has been paid again to help
them solve the situation. Those that are now seated have not modified their actions.
The country's system is still broken, and the objective is to assist local
governments and students amid a pandemic; they've even used this as a bridge to
corrupt the people's money. It's terrible to believe that our economy is in the
process of deepening rather than developing.
But, as a student who aspires to be a part of a movement for change, I remain
hopeful. I shall not give up hope; there will be some good leadership members who
will pull us all up in the coming days. People who genuinely care about their nation
and fellow Filipinos. A genuine desire to assist and a deep affection for one's
profession and nation. The youth must rise to the challenge of governments
corruptions.

REFERENCES:
INQUIRER.NET. (2021, August 17). COA doubts if construction firm can legally
supply DICT with laptops, tablets Read more:
https://newsinfo.inquirer.net/1475087/coa-doubts-if-winning-dict-bidder-
can-legally-provide-laptops-as-it-is-a-construction-firm#ixzz74blfI6q2

Philstar.com. (2021, August 19). COA questions DICT’s purchase of gadgets from
construction firm. https://interaksyon.philstar.com/politics-
issues/2021/08/19/198476/coa-questions-dicts-purchase-of-gadgets-from-
construction-firm/