Thousands of paintings, sculptures and archaeological specimens with a total appraised value of P118.84 million 13 years ago have not been insured by the Intramuros Administration (IA) and are exposed to the “risks of non-indemnification in cases of damage/loss” due to fortuitous events" and unforeseen destruction, the Commission on Audit (COA) has warned.
COA lamented in the recently-released IA annual audit report (AAR) for 2020 that the agency has failed to insure the “priceless” historical and archaeological items with the Government Service Insurance System (GSIS) notwithstanding the agency’s mandate to “preserve and enhance” their historical value.
“Intramuros is a priceless heritage of the past for the City of Manila and a major historical landmark of the Philippines. IA was mandated under PD (Presidential Decree) No. 1616 to preserve and enhance its historical value,” noted the audit agency.
The 2020 AAR stated: “This includes the preservation of several Works of Art and Archaeological Specimen which are held for their cultural and historical significance. Unlike other properties, these assets have no replacement value, unique and irreplaceable.”
State auditors noted that IA has not only failed to insure the antiques and historical and archaeological artifacts but was also unable to have these appraised for insurance purposes.
Valued at P36,159,939 in IA’s book balance, the items were appraised in 2008 with a partial Appraised Value of P118,846,450 or “three times more than the current carrying value.” “However, current update on the appraisal of its antique collections was not yet conducted despite Management’s commitment to hire an Appraiser to determine its current value and recognize the needed increase in premiums,” COA auditors said.
“Failure to update the appraisal value of these antique collections would expose IA to the risk of not recovering the current/true worth/ valule of these antiques in the event of loss or damage,” they warned.
Aside from the historical and archaeological collection, IA has also failed to adequately cover with insurance over P120 million more worth of insurable assets and equipment.
Responding to the audit observation, the IA management under Administrator Guiller Asido explained that insurance policies for works of arts and high value antique items were no longer renewed due to lack of funds.
IA officials said they have sought with the Department of Budget and Management the inclusion of additional allocation for the said valued items but their request was not acted upon.
“This was the reason why they have to terminate the insurance policy they had with GSIS for their antique items,” COA revealed.
For 2022, the agency proposed a budget of P8 million to cover insurance expenditures and the possible engagement of an appraiser.