Disbursements amounting over P4.2 billion for various infrastructure projects of the Department of Public Works and Highways (DPWH) have been suspended by the Commission on Audit (COA) for being made ‘without proper and complete supporting documents.”

COA released on Tuesday, August 8 the 2020 Annual Audit Report for the DPWH where it also noted that a total 3,283 infrastructure projects worth over P108 billion have been delayed or are no longer implemented due to the “absence of proper coordination” with local government units and other government agencies.

In the audit report, auditors pointed to numerous adverse audit issues committed by the department that is the lead agency in pursuing the Duterte administration’s “build, build, build’ program.

State auditors noted that government lost over P681.9 million constituting advance payments to contractors that were no longer recovered by the DPWH.

COA also observed that as a result of the DPWH’s failure to observe provisions of loan agreements and non-compliance in the implementation of foreign assisted projects, government incurred P89.51 million in commitment fees deducted from the loan proceeds.

“The provisions of the loan agreements/contracts and DO No. 193 dated September 15, 2016, were not observed and/or complied with in the implementation of foreign-assisted infrastructure projects funded by Official Development Assistance (ODA) which adversely affected the timely utilization of the loan proceeds and completion of the projects resulting in the incurrence of commitment fees amounting to P89,518,1240.12 for CY 2020,” the state audit agency reported.

At least P4.2 billion in expenditures for various infrastructure projects in Regions I, II, VI, VII, IX, X, XII and XIII Infrastructure have been questioned for lacking supporting documents and relevant documentary requirements.

“Audit of disbursements of different DPWH offices revealed that expenditures totaling P4,220,699,011.23 were paid despite of improper and incomplete supporting documents,” COA stated.

“As a result, payments of the above-cited disbursements/transactions without complete supporting documents by various DPWH offices were contrary to the afore-cited provisions fo PD No. 1445, thus, suspended in audit,” it added.

Also noted by auditors was the delayed completion or non implementation of 3,283 infrastructure projects with a total funding of P108,318,959,271.99.

The audit examiners cited the “absence of proper coordination” with various local government units and other government agencies concerned as one of the reasons behind this failure.

Also cited as another factor for uncompleted projects is the inability of DPWH to “establish the technical viability of the projects during the feasibility and preliminary study.”

“Perusal of the report on the status of projects showed that significant delays in the implementation of the projects were caused by numerous suspension orders, time extensions and variation orders issued by DPWH offices,” COA reported.

To prevent these from happening again, the audit agency called on the DPWH to disqualify or blacklist contractors involved and initiate the immediate take-over of terminated projects.

The DPWH was also asked to ensure full coordination with LGUS and other government agencies involved in ensuring the success of projects.

The audit team disclosed massive loss of government funds as a result of the failure of DPWH to recover P681,951,728.01 from contractors who were given advanced payments but whose projects have already been completed, rescinded or terminated as of December 31, 2020.

The DPWH cited the late or non-submission of final billings as among thereasons why advance payments have not been recouped.

For terminated or rescinded contracts, auditors noted that surety bonds posted by the contractors have not been forfeited due to the “absence of a committee or assigned DPWH officials who are responsible in forfeiting the said surety bonds.”

COA called for the filing of legal action against erring contractors if they continue to refuse to return the advances made, among other moves that the DPWH can pursue to recoup the advances.