TALISAYAN, Misamis Oriental — The Commission on Audit (COA) has recommended the denial of a ₱2.015-million money claim against the Municipality of Talisayan over grocery purchases made during the previous administration. 

In a six-page decision released Sept. 2, COA said the money claim filed by PrinceMin Corporation lacked merit. 

The company sought payment of ₱2,015,087.08 in alleged unpaid purchases, plus ₱919,919.90 in interest, ₱50,000 in exemplary damages, ₱50,000 in attorney’s fees and ₱20,000 in litigation expenses. 

Mayor Ciriaco A. Talines presented the COA decision and stressed that the questioned transactions were entered into during the administration of former Mayor Rico T. Taray, who lost his bid for reelection in 2025.

 What happened 

COA records showed that Prince Hypermarket Balingasag delivered 2,000 Christmas grocery packages worth ₱1.9 million, another 855 packages worth ₱773,087.08, and 400 five-kilogram rice bags worth ₱142,000. 

The deliveries totaled ₱2,815,087.08. The municipality made a partial payment of ₱800,000 on March 10, 2025, leaving a claimed balance of ₱2,015,087.08. 

PrinceMin later filed a money claim before COA, citing a Nov. 23, 2023 letter of intent signed by Taray, purchase orders, sales invoices and statements of account. 

Why COA rejected the claim 

The municipality, in its March 23, 2026 Counter-Affidavit, argued that the transaction lacked the required authorization from the Sangguniang Bayan, had no appropriation, and did not undergo competitive bidding under Republic Act 9184, or the Government Procurement Reform Act. 

COA agreed that the former mayor entered into the transaction without the required legislative authority. 

It cited Section 22(c) of Republic Act 7160, or the Local Government Code, which generally requires prior authorization from the local sanggunian before a local chief executive enters into a contract on behalf of a local government unit. 

COA, however, clarified that the transaction was not necessarily void from the beginning. Citing Article 1897 of the New Civil Code, it noted that an agent acting without authority may instead become personally liable to the third party. 

The audit body also rejected PrinceMin’s argument for payment under quantum meruit, finding that the grocery packages did not satisfy the requirement of public purpose because the benefits went to municipal and barangay officials and employees. 

The decision, dated Aug. 25, 2026, was signed by COA Director IV Marisol D. Legaspi in Cagayan de Oro City. 

The COA action is a recommendation on the money claim and identifies the lack of authority and public purpose as key reasons for its denial.