COTABATO CITY, Philippines – The special team from the Commission on Audit (COA) has flagged alleged widespread fraud and blatant violations of procurement laws within the Ministry of Basic, Higher, and Technical Education (MBHTE) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

According to the preliminary findings of an investigation ordered by COA Chairman Gamaliel Cordoba, the irregularities involved the procurement of learning materials amounting to some P2.2 billion.

The special audit was initiated in 2025 following formal complaints and reports about two alleged major anomalous transactions. A copy of the audit report, prepared in September 2025, was leaked to reporters last week.

The first involved more than P1.772 billion in payments for grade-school textbooks for the 2024-2025 period, while the second pertained to suspicious payments amounting to over P449.23 million made to a supplier identified as FEJA Non-Specialized Wholesale Trading for learners’ and teachers’ kits.

State auditors noted that these transactions bypassed standard review processes and failed to comply with auditing procedures and the Government Procurement Reform Act.

A central piece of evidence in the special audit report highlighted 73 disbursement vouchers for learning materials, totaling over P2.247 billion, that were processed and paid based solely on certifications issued by MBHTE officials and staff.

These payments, according to the report, were cleared despite a critical lack of mandatory procurement documents required under Republic Act No. 9184.

The special audit report stated that the chief of the ministry’s finance division certified these transactions, allowing the supplier to receive full payment with the approval of the region’s education minister or deputy minister, a move which state auditors described as being to the grave disadvantage of the government.

The audit report further detailed alleged defects in the awarding of 53 contracts worth over P1.952 billion. The bids and awards committee allegedly failed to verify the legitimacy of joint ventures (JVs) serving as bidders, resulting in contracts being collected by only a single member of the JV.

Furthermore, for 41 projects involving updated learning resources worth over P1.47 billion, the MBHTE proceeded with the contracts even though the bidders failed to post the required performance security before signing.

More alleged negligence was discovered regarding the delivery of small armchairs worth P30.9 million.

The MBHTE also allegedly failed to impose penalties or liquidated damages amounting to more than P16 million despite a 520-day delay in delivery.

These financial findings come at a time when the BARMM education sector is under intense scrutiny. Despite receiving massive funding over the last six years, a recent report from the Second Congressional Commission on Education (EDCOM 2) revealed that the region continues to suffer from the highest dropout rate, the lowest literacy rate, and the highest number of non-readers in schools nationwide.

The special audit team warned that the failure of the involved officials to submit comments within the prescribed period will lead to the finalization of findings based on currently available records.

The BARMM education ministry, led by Minister Mohagher Iqbal, has not yet issued a response to the COA findings as of this posting. But last year, Iqbal strongly denied allegations of massive fraud in the BARMM’s education ministry, asserting that the acquisition of learners’ and teachers’ kits strictly adhered to the government procurement law and audit rules.

That year, he also dismissed allegations that a P1.7-billion single-day transaction as “grossly misleading,” asserting that the education ministry had layers of financial safeguards to ensure transparency. He denied that ministry outsiders or relatives of officials interfered in the procurement process and program implementation.

Iqbal, also vice chairman of the Moro Islamic Liberation Front (MILF), served as chief peace negotiator and a key signatory to the 2014 Comprehensive Agreement on the Bangsamoro that paved the way for BARMM’s creation in 2019. The interim regional government is dominated by the MILF. – Rappler.com