About 14,000 pairs of rubber shoes intended for Grade 1 to 3 learners were still undelivered despite the Mandaue City Government having paid P54.43 million to a supplier for 17,100 school supply kits, the Commission on Audit (COA) said.
The procurement had a total contract price of P58,129,911 and was funded through the Special Education Fund (SEF).
Each school supply kit was supposed to contain a customized backpack, physical education uniform, rubber shoes, notebooks, writing paper, sharpener, pencil case and pencils with erasers.
The city paid the supplier P54,434,509.52 net of taxes through a Land Bank of the Philippines check dated March 27, 2025.
COA said the supplier’s March 21, 2025 delivery was documented through delivery receipts and a sales invoice listing all required items. A General Services Office (GSO) inspector signed the inspection report on March 21, while the custodian signed it on March 25, allowing the payment to be processed.
However, certifications obtained by state auditors from various schools in February 2026 showed that the customized rubber shoes were not included in the supply kits distributed to Grade 1 to 3 learners.
The audit team then conducted validation procedures on March 16, 2026, by sampling three schools. The schools confirmed receiving the supply kits but said the rubber shoes were missing.
The DepEd Supply and Property Custodian also told COA that recipient schools had reported not receiving the shoes.
He said he initially assumed that the shoes were packed inside the backpacks, which led him to sign the inspection and acceptance report.
The custodian told auditors that he verbally informed GSO personnel about the incomplete delivery but could no longer recall whom he had contacted.
The supplier eventually made a partial delivery of the missing shoes on Jan. 24, 2026.
COA inspected the delivery at the DepEd office and found 60 sacks containing 50 pairs each, or 3,000 pairs in total.
This left about 14,000 pairs undelivered at the time of the audit team’s observation.
Under the procurement contract, the supplier was required to deliver the items within 30 calendar days from receipt of the purchase order.
The supplier signed the purchase order on March 5, 2025, setting April 6, 2025 as the delivery deadline.
The contract also imposed liquidated damages equivalent to one-tenth of 1% for every day of delay.
COA described the missing deliveries as “a substantial and unjustified delay in the fulfillment of the contractual obligation.”
The auditors also found weaknesses in the inspection process, saying the discrepancy “appears to have resulted from limited inspection of delivered items and reliance on assumptions regarding the contents of unopened sacks.”
The GSO inspector told COA that only one sack was opened during the inspection. Because it contained rubber shoes, she assumed the remaining sacks contained the same items and signed the inspection and acceptance report as complete.
COA said the full payment of the contract despite the incomplete delivery was inconsistent with procurement and accounting rules.
“Full payment of the contract price notwithstanding indications of incomplete delivery and delayed fulfillment of contractual obligations is not consistent with RA No. 9184 and its 2016 Revised IRR and the Manual on NGAS for LGU,” the state auditors said.
The auditors also said the situation “deprived the City of the opportunity to timely enforce contractual remedies,” including imposing liquidated damages on the supplier.
Cortes defends Bercede
Former Mandaue Mayor Jonas Cortes defended Vice Mayor Glenn Bercede, who was serving as acting mayor when the purchase was made, and called for the complete timeline and supporting documents to be considered.
Cortes said government records showed that the 17,100 school supply sets had been inspected and accepted as complete.
He said mayors rely on designated inspectors and property officers to verify deliveries rather than personally checking every item.
“Dili man ang Mayor personally ang moabli sa matag sako, moihap sa matag sapatos, ug mo-inspect sa matag delivery,” Cortes said.
Cortes also cited a May 21, 2026 DepEd document which, according to him, recorded the delivery of the remaining rubber shoes and listed the undelivered balance as “NONE.”
He said Bercede should not be held personally responsible for deficiencies that were not disclosed to him at the time.
COA recommendations
COA recommended that the city require the supplier to complete the delivery of the missing items or refund the amount corresponding to the undelivered supplies.
The auditors also recommended that the city “compute and impose the appropriate liquidated damages for the delay in delivery.”
COA further urged the city to strengthen internal controls over inspection and acceptance and conduct an investigation to determine the underlying causes of the incomplete delivery and establish accountability.
During the exit conference, the City Administrator told auditors that the matter had already been referred to the City Legal Office for investigation.
COA said the city also committed to improving its inspection procedures and considering the imposition of liquidated damages against the supplier.
Photo courtesy of Mandaue City PIO
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