10-7-2023 (MANILA) The Commission on Audit (COA) has expressed concerns regarding the Philippine Coast Guard’s (PCG) purchase of a luxury vehicle valued at P4.9 million without the required approval from the Department of Budget and Management (DBM). Furthermore, COA flagged the PCG’s acquisition of new vehicles despite already possessing a fleet of over 400 vehicles.
In their 2022 audit report, state auditors instructed the PCG to seek post-facto approval from the DBM for its acquisition of a Toyota Land Cruiser Prado in 2022, as it fell under the category of a luxury vehicle as defined by Administrative Order (AO) No. 14.
According to the sales invoices, the sports utility vehicle (SUV) has an engine displacement of 3956 CC and features a six-cylinder engine, meeting the criteria for a “luxury vehicle” under AO No. 14.
AO 14, implemented during the tenure of former President Rodrigo Duterte, prohibits government agencies from procuring and using luxury vehicles for their operations.
The audit report stated, “In addition, it bears to note that the aforesaid vehicle was likewise requested for bulletproofing amounting to P2,800,000.”
The PCG financed the purchase of the vehicle using its 2021-2022 fuel rebates from Petron Corporation, incurring an additional expense of P2.8 million to make the vehicle bulletproof.
COA also raised concerns about the PCG’s acquisition of 31 brand new Isuzu MUX LS-A 4×2 vehicles, each worth P1.9 million, under Petron’s rebates program, totaling P58.9 million.
COA questioned the necessity of procuring new vehicles through Petron’s program, stating that the PCG already owns approximately 459 service vehicles.
In response to COA’s findings, the PCG argued that the armored SUV was necessary for the safe and secure transportation of the Commandant.
The PCG further justified the need for additional vehicles to support its expanding operations and services.
