Three (3) completed infrastructure projects in Caramoran town worth a total of P10.3 million were not fully operational or unutilized as of March 2024, the Commission on Audit (COA) found during an ocular inspection last year.
In its annual report on the LGU’s transactions for 2023, the audit team identified the projects all located in barangay Baybay, as the following: Construction of Motorpool, with a project cost of P1,997,753.23 and completed on Aug. 27, 2022; Construction of Municipal Warehouse, P6,985,022.98, May 14, 2023; and Improvement/Rehabilitation of BEMONC Building, P879,104.59, Aug. 15, 2023.
On the motorpool project located 1.5 kilometers from the municipal hall, the team discovered during its ocular inspection that there was no indication that the 1500-square meter facility was in use was it was deserted or abandoned at the time.
At the same site, the municipal warehouse, which was intended to store relief goods as required by the Department of Social Welfare and Development (DSWD) for each municipality, instead contained a truck, props, a garbage shredder, a rotary drum composter and scrap materials.
The auditors said that although there were some boxes of DSWD relief supplies in one side of the building, majority of the 240-square meter area was occupied by the equipment and scrap items.
On the other hand, the Basic Emergency Maternal Obstetrics and Newborn Care (BEMONC) Building, which had undergone replacement of ceiling, repair and installation of doors and windows and roll-up door as well as electrical and plumbing works, was not yet operating at the time of the COA inspection.
“The delay in the full operation of the completed infrastructure projects can be attributed to several factors such as lapses in project planning and deficiencies in overall project supervision,” the report stated, adding that this resulted to delayed enjoyment of the projects and may result to eventual wastage of government funds.
It urged the LGU management to judiciously plan programs, projects and activities and regularly monitor their implementation to avoid non-utilization and ensure effective and efficient use of funds.
During the exit conference, the municipal planning and development office and the administrators of the warehouse and motorpool explained that the buildings are now being used as intended while the Rural Health Unit is still working on compliance with the licensing of the BEMONC with the Department of Health (DOH).
In another significant finding, the government watchdog observed several defects on a road concreting project in barangay Maui that required rectification pursuant to Section 62.2 of the Revised Implementing Rules and Regulations of Republic Act 9184 or the Government Procurement Reform Act.
Together with Municipal Engineering Office staff, the COA team inspected the project for the upgrading of road with concrete drainage that cost P875,560.58 and was completed on June 22, 2023.
It observed several noticeable defects such as major scaling, pock marks and shattered portions of the pavement, which the auditors said could be attributed to poor workmanship, use of poor-quality materials and non-compliance with Plans and Specifications of the contract
If not rectified, the report emphasized, the defects may cause further damage to the structure to the disadvantage of the end-user or even loss or wastage of public funds.
The Commission recommended that the local chief executive direct the municipal engineer to require the contractor to immediately rectify the defects considering that during the inspection it was still under the defects-liability period.
Otherwise, it warned, the management shall undertake such repair works and shall be entitled full reimbursement of expenses incurred from the contractor to prevent further damage and deterioration of the structures.
The mayor and the engineer concurred with the observation and committed to comply with the audit recommendations.
The COA team likewise discovered that technical specifications were not indicated in the Purchase Request (PR), Request for Quotation (RFQ) and Purchase Order (PO) for various procurements amounting to P1.4 million as required under RA 9184, “resulting to unclear standards of quality of materials, goods and services delivered.”
Among the items procured without technical specs were a motorcycle, printers, desktop computers, laptops, smartphones, life-size statues of cartoon characters, and other goods.
It said the failure to indicate the technical specifications of the items procured may not have assurance that the items delivered were the ones requested and actually needed by the requesting party with the most advantageous price.
Post-audit of disbursement vouchers also revealed that the LGU’s requisitioning departments procured various office equipment and sports materials for CY 2023 that reflected brand names in the PR and bidding documents.
This is expressly prohibited under Section 18 of the RIRR of RA 9184, the audit team emphasized.
Among the items with brand names indicated in the documents were basketballs (Wilson), refrigerators (Sanyo and Sharp), as well as printers and an LCD projector (Epson).
Contracts totaling P4.5 million undertaken under Small Value Procurement (SVP) were awarded to various suppliers despite non-presentation of PhilGEPS registration and other documents, casting doubt on the propriety of the expenditures.
A review of the vouchers and supporting documents showed that the winning bidder’s PhilGEPS certificate was not submitted, along with the copies of the Mayor’s Permit/Business Permit and Omnibus Sworn Statement.
This inability to obtain the required documents from the supplier before the award of the contract meant the LGU lost assurance that it transacted only with technically capable suppliers.
On the other hand, a review of the travel expenses for the year revealed that LGU officials attended the 2023 Philippine Councilors League (PCL) National Convention in Pasay City on March 9-11, 2023 and chose to travel by land.
The delegation utilized a service van from Catanduanes to Manila, with each of the seven councilors paying P8,000 each or a total of P56,000.
A check of the prevailing bus fares for the period indicated that the travelers could have paid only P2.700 each for the round trip, which could have saved the LGU P5,300 per person or a total of P37,100 had the officials opted to take the bus instead of the van.
During the exit conference, the SB secretary, representing the SB members, concurred with the observation and informed that three councilors had already refunded the excess cost of transportation.
The audit also showed that the mayor, vice mayor and SB members attended various seminars, trainings and assemblies sponsored by their respective leagues and organizations in various places such as hotels in Boracay, Cebu City and Manila, Subic Bay, World Trade Center, SMX Convention Center and in two venues in Catanduanes, incurring a total of P554,800.00 for registration expenses.
Among the observations were: participation of all SB members when one or two would suffice; regional activities conducted outside the geographical area; inclusion of two regular employees and a co-terminus employee not directly related to the purpose of the assembly, thereby costing the LGU an unnecessary expense of P30,000; non-attachment of activity or accomplishment reports; and failure to submit government official receipts.