The property in question is a 1,063-square-meter lot which the province sold to the barangay through a negotiated sale.According to COA, the transaction did not follow its existing rules as its COA Circular No. 2017-003, which amended Section 197 of COA Circular 92-386, mandates that the disposal of properties under negotiated sale should be subject to the approval of the Commission.
According to COA, the 1,063-square-meter lot supposedly had a total book value of P8,330 per square meter or a total value of P8,854,790; “thus, resulting in a loss on sale of P3,539,790.” “We further recommend that COA approval be secured for disposal of real properties and improvements through negotiation before the perfection of the contract of sale,” COA added.