Firm of COA commissioner's wife issued notice of disallowance

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A notice of disallowance has been issued against a construction firm owned by the wife of Commission on Audit (COA) Commissioner Mario Lipana, Davao del Sur Representative John Tracy Cagas said Monday.

Cagas made the statement while defending the COA’s proposed 2027 budget during the House plenary deliberations.

“COA conducted an investigation. In fact, there is already a notice of disallowance… referring to Mrs. Lipana’s construction firm,” Cagas said, quoting COA officials.

Cagas, however, said the notice has yet to become final.

“The case is currently on appeal before Cluster Seven,” he said, referring to COA’s Public Works, Transport and Energy auditing cluster.

During a House budget hearing in September 2025, questions were raised about Lipana’s links to government contracts, with his wife, Marilou Lipana, listed as the owner of Olympus Mining and Builders Group Phils. Corp.

Following this, ACT Teachers party-list Representative Antonio Tinio asked whether Lipana would take part in deciding the appeal if the case eventually reaches the COA en banc.

Cagas said Lipana would inhibit himself from the proceedings.

According to Cagas, Lipana is currently on sick leave due to cancer.

COA Chairperson Gamaliel Cordoba had previously confirmed that Lipana had been on medical leave while undergoing treatment abroad.

Cagas, meanwhile, said the two remaining commissioners are continuing to perform their duties.

The House later terminated the plenary deliberations on COA’s proposed P2027 budget.— MCG, GMA News