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The Commission on Audit en banc upholds its finding that the payment was irregular because its issuance was not within the permitted procedures.
MANILA, Philippines – The Audit Commission (COA) upheld the rejection notice it had issued against Ports Authority of the Philippines (PPA) in 2023 on the payment of P195-million for health services and laboratories during the COVID-19 pandemic.
In a 12-page decision dated February 25, 2026, the commission bank maintained its finding that the alleged payment was irregular because its issuance was not within the permitted procedures.
According to the COA, the money in question came from the balance of the P520 million financial assistance given to the PPA as a subsidy to sectors such as the shipping industry.
The PPA spent P320 million to pay for the shipping and storage fees of local ships and free COVID-19 tests for returning Filipino seafarers. However, the PPA left a P200-million balance unspent.
PPA entered into an agreement with Firstaide Inc. for the P199.94-million purchase of the COVID-19 virus shipment of central testing equipment and laboratory services for seafarers. From August 5, 2021 to January 19, 2022, PPA paid the health care provider P195.94 million in total withholding tax.
The government auditors later said that the funds that were not accounted for should have been returned to government funds since Republic Act No. 11519 only extended the release of funds under the Bayanihan to be Restored as a Single Act until June 30, 2021.
Those responsible for the denial are PPA general manager Jay Daniel Santiago, acting manager Eric Dimaculangan, former prime manager Elvin Siosana, assistant control manager Russel Babadilla, and Firstaide Inc.
Firstaide, however, contested the rejection and requested a refund. The COA accepted the appeal in part and ruled that Firstaide was entitled to compensation for the services it rendered.
“In this case, despite the invalidity of the contract, Firstaide Inc. still has the right to obtain reasonable value for the provision and services to the PPA,” the commission said.
On closer inspection, COA said Firstaide was paid to 54,659 seafarers, but the audit team found only 52,465 were valid. Some were incorrect due to lack of documentation.
Therefore, the COA said the valid payment amounted to only P188.08 million and ordered the refund of the difference of P7.86 million. – Rappler.com
