COA flags P173M non-operational X-ray machines procured by OTS

MANILA, Philippines – The Commission on Audit (COA), in its latest annual audit report, flagged the unused multi-million X-ray machines of the Office for Transportation Security (OTS).

The COA said the five units of Final Check Baggage X-ray machines with explosive detection system acquired by the OTS for P173.73 million were barely operational due to frequent breakdowns.

The machines were purchased through the Procurement Service of the Department of Budget and Management. Three of which were delivered in December 2018, while the other two in February 2019.

The OTS is a government body under the Department of Transportation (DOTr).

In its website, the OTS is described as “the single authority responsible for the security of the transportation systems of the country.” These include: civil aviation, sea transport and maritime infrastructure, land transportation, rail system and infrastructure.

“During inspection conducted in 2022…it was noted that the five remaining X-ray machines which were acquired less than five years ago, are not operational. According to the General Services Section, the machines were not fully utilized due to unreliability of the locally-manufactured ATRS (Automatic Tray Return System),” the COA said.

The COA added: “Considering that the remaining five SSEs (security screening equipment) remain idle, non-operational, and not properly maintained for considerable period, they become non-responsive to the objective of enhancing the security screening of the airports and are considered unnecessary expenditures that may be disallowed in audit.”

OTS blamed the ATRS’ incompatibility with the machines, which resulted in breakdowns. The machines’ manufacturer proposed to convert the ATRS into a standalone system to continue supplying spare parts post-warrant support, but the OTS declined the offer. The government body said the service charge was “unreasonable and exorbitant.”

Meanwhile, the two machines installed at the Davao International Airport were later removed and transferred to the Philippine Air Force in 2020, through letter requests of the secretaries of the Department of National Defense (DND) and the DOTr dated September 23, 2019.

The DND and the DOTr justified the transfer because, saying it was meant “to fortify the security screening of all Presidential sorties. In addition, the former OTS chief said their office offered the five X-ray machines as donations to the Manila International Airport Authority, but the latter refused the offer after learning about downtime and the machines’ limited operability.

But, the COA said the transaction violated Presidential Decree No. 1445, which requires government offices to safeguard all resources of the government against loss or wastage through illegal or improper disposition. The auditing body added the transaction also violated COA Circular No. 2012-003, which defined unnecessary expenditures. – Rappler.com