CHED contract irregular - COA

February 22, 2008

Government auditors of the Commission on Higher Education (CHED) have found irregularities in the contract the agency forged last year with a consortium for a multimillion- peso project to establish call centers in six state colleges and universities. In-house Commission on Audit (COA) auditors said that the P298.6-million contract signed by former CHED chairman Carlito Puno with e-Services Global Solutions Inc. (eSGS) contains provisions that are at the least ambiguous and at the most grossly disadvantageous to the government. Auditors noted that while the eSGS consortium will be paid P298.6 million for setting up six call centers and operating them for five years, the company will only pay P126 million in annual lease rental payment to CHED.

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