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Manila Bulletin devider Philippines devider National devider COA affirms P21-M disallowance on 2 'substandard' road projects in Davao City

COA affirms P21-M disallowance on 2 'substandard' road projects in Davao City

Published Nov 25, 2025 04:30 pm
The Commission on Audit (COA) has affirmed the more than P21 million disallowance on two road projects in Davao City undertaken by the Department of Public Works and Highways (DPWH)-Davao City District Engineering Office (DCDEO) and E. Gardiola Construction, which is reportedly owned by Party-list Rep. Edwin Gardiola.
The first decision involved the disallowance of P9,565,836.17 on the project "Rehabilitation/Improvement/Resurfacing along San Pedro, Jacinto Street, M. Roxas Avenue Extension, Poblacion Road, Davao City."
The second decision involved the P11,801,878.54 "Rehabilitation/Improvement/Resurfacing along Ecoland Drive-Matina Road, Davao City."
For the first project, the COA said its audit team noted that the revised contract cost of P19,287,218.37 was 126.48 percent higher than the COA estimated cost of P8,515,931.06, so the contract price was considered excessive by P10,771,287.31.
The second project had a contract cost of P19,288,760.93, which was 157.63 percent higher than the COA estimated cost of P7,486,882.39. The audit team said the contract price was considered to be excessive by P11,801,878.54.
The COA said that actual inspection of both projects revealed that guardrails, road signs, pavement studs, and foundation blocks were deficient and substandard.
It pointed out that the approved and as-built plans failed to comply with the planning standards set by the DPWH as they did not indicate measurements and landmarks.
It also said that most rails, bolts, nuts, and washers were rusty and the guardrail posts were not filled with concrete foundation.
While Gardiola appealed the disallowances and argued that the audit team failed to consider indirect costs such as construction materials as well as transportation and labor costs, the COA found the appeal bereft of merit and said that the audit finding of price excessiveness was supported by actual canvass sheets and price quotations on identical items.
The COA directed the Prosecution and Litigation Office, Legal Services Sector to refer the case to the Office of the Ombudsman for investigation and filing of appropriate charges against several officials from the DPWH-DCDEO and E. Gardiola Construction.
In both cases, the COA wants DPWH District Engineer Lorna T. Ricardo, Officer-in-Charge Assistant District Engineer Milagros E. Delos Reyes, Engineer III Dwight Vincent J. Fernandez, Engineer II Eduardo P. Villar, Engineer II Johnny P. Dela Pena, Engineer II Lilibeth M. Sarmiento, Project Inspector Francisco T. Pilapil, and the officials of E. Gardiola Construction to be held liable for the amounts of P9,565,836.17 for the first project and P10,596,330.98 for the second project.
Laboratory Technician II Rolly B. Tulayba, who conducted the test on zinc coating of guardrail panels, was recommended to be held liable in the amounts of P199,632.20 and P1,618,749 for the first and second projects.
The two decisions were signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.
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