Mandaue City is encountering significant scrutiny over a procurement of school supplies, particularly involving nearly 14,000 pairs of rubber shoes meant for young learners. The Commission on Audit (COA) has revealed that a total of 17,100 school supply kits were purchased for P58.13 million under the Special Education Fund (SEF), yet a substantial number of rubber shoes remain undelivered despite payments having been made to the supplier.
The city allocated funds for the school supply kits, which were designed to assist Grade 1 to 3 pupils. Each kit was set to include a customized backpack, PE uniform, rubber shoes, notebooks, sharpener, pencil case, and writing materials. According to records, the procurement was officially paid out via check from the Land Bank of the Philippines dated March 27, 2025, which totaled P54,434,509.52—net of taxes.
COA's findings indicate that, while delivery documents were signed on March 21, 2025, confirming all necessary items were received, further investigations revealed discrepancies. In February 2026, certifications from various schools indicated that the customized rubber shoes were conspicuously absent from the distributed kits.
On March 16, 2026, COA conducted a further validation by visiting several schools, only to find that while the supply kits were indeed received, the promised rubber shoes were missing from the kits. This alarming finding was corroborated by the Department of Education's Supply and Property Custodian, who confirmed that the missing shoes had been reported by the schools soon after the kits were distributed.
It has been noted that the supplier eventually delivered some of the missing items—3,000 pairs—in January 2026. However, according to COA's observation, about 14,000 pairs remained unaccounted for when the audits were conducted. The original contract mandated that the supplier deliver the complete order within 30 days from the receipt of the purchase order, which had a deadline of April 6, 2025, making the later delivery problematic and unjustified according to auditing standards.
COA criticized the inspection protocols followed by the city, stating that the discrepancies arose from insufficient checks and oversights. Reports indicated that the inspector only opened a single sack during the inspection, leading to the erroneous assumption that all sacks contained rubber shoes. This reliance on assumptions instead of thorough inspections led to compliance issues concerning procurement and accounting rules. COA emphasized that full payment should not have been made given the incomplete delivery, which violated relevant procurement laws and regulations.
In response to the audit, former Mandaue Mayor Jonas Cortes defended Vice Mayor Glenn Bercede, asserting that procurement officials must take into account the entire timeline of the transactions. He pointed out that official records showed the school supplies had been inspected and accepted as complete. Furthermore, Cortes referenced a May 21, 2026 document from the Department of Education indicating that the remaining rubber shoes had been delivered, allegedly resolving the issues raised by COA.
COA has recommended that the city either compel the supplier to deliver the outstanding items or refund the cost of the undelivered supplies. Additionally, COA urged Mandaue City to compute and enforce liquidated damages for the supplier's delays in delivery, reinforcing the necessity for stricter inspection controls moving forward. The city has acknowledged these recommendations and stated that the case has been sent to the City Legal Office for investigation into the accountability and underlying causes of the mismanagement. Mandaue City also committed to improving its procurement procedures to prevent such incidents in the future.