The Commission on Audit (COA) said the failure of Butuan City to implement seven projects worth P92.5 million in 2023 deprived its constitutents of their socio-economic benefits.
In its annual report, the COA said the seven projects that were not implemented were the Construction of Mandamo Water Supply (P5,000,000), Construction of Amparo Water Supply System (P3,000,000), Construction of Bugsukan Water Supply System (P5,000,000), Construction of Dumalagan Water Supply System (P5,000,000), Completion of SP Building at Barangay Doongan (P20,000,000), Development of Butuan City Rice Research Center P-II (P34,500,000), Rehabilitation of City Hall Compound Power Supply (P20,000,000).
When quizedd by state auditors, the COA said the City Engineering Department (CED) declared that the construction of the Dumalagan Water Supply System and the development of the Butuan City Rice Research Center were cancelled due to budget reallocation and revision of project design.
The auditors also found that the remaining projects such as the construction of water supply systems for Barangays Mandamo, Amparo, and Bugsukan, the completion of the SP Building, as well as the rehabilitation of the City Hall Compound Power Supply, were still ongoing, the COA said.
It said the audit team confirmed with the City Procurement Management Department (CPMD) that the winning bidder for the construction of water supplies duly received the Notice to Proceed on Feb. 5, 2024.
On the other hand, it said, the pre-bid conference was held last Feb. 05, 2024 for the completion of the SP Building, while the bids and awards committee (BAC) resolution recommending the award for the rehabilitation of City Hall Compound Power Supply is still underway.
"Considering the above conditions, the funds allocated for priority development projects were not optimally utilized by year-end due to cancellations and delayed implementation," the COA said.
"This indicates that the corresponding projects were not procurement and implementation-ready. This likewise resulted in constituents being deprived of enjoying the socio-economic benefits expected from the supposed completed projects," it also said.
The COA report recommended that the Butuan City Development Council (BCDC) prioritize readily implementable and procurement-ready programs, projects, and activities (PPAs) to prevent waste of resources due to delay or non-implementation.
It also asked the CPMD to fast-track the procurement process for the remaining 2023 implementable development projects to ensure it does not interfere with the procurement of the following year's priority projects.