Past chases DPWH, but budget OK’d

As of today, we have received P900 million out of P3 billion.

WORKERS in government road projects are deployed non-stop, rain or shine.

The Senate Committee on Finance has approved the Department of Public Works and Highways’ (DPWH) proposed P533.497 billion budget for 2020.

But the lawmakers did not spare the agency of questions regarding the overlapping of projects and their implementation in 2018, which was also flagged by the Commission on Audit (CoA).

Public Works Secretary Mark Villar was also queried about the cash advances made by some erring contractors as noted by the CoA in its 2018 annual audit report.

According to the 2018 audit report, the DPWH failed to recoup the P3.047 billion advance payments given to contractors whose projects were either already completed, rescinded or terminated.

Senate Finance Committee vice-chairman Panfilo Lacson asked the DPWH about the money, emphasizing the significance of the amount, but DPWH Financial and Management Service officer-in-charge Marichu Palafox assured the panel that they have regained P900 million, or about a third of the P3 billion amount.

“We have a constant notification to contractors to file billings, so that we could recoup the unrecouped portion of their payments,” Palafox said. “As of today, we have received P900 million out of P3 billion.”

Villar assured the panel that the DPWH is forceful with the erring contractors. The agency claimed to have already blocked at least 20 contractors from the list of firms working on their projects.

“We are very aggressive now as regards the contractors. In fact, we have blacklisted around 20 contractors which is a much higher rate than in the past years,” he said.

“That is one of our focuses. Certainly, it’s not a perfect system, there’s really some problem with contractors, but we do our best to crack down on them as best we can and I think our blacklisting rate reflects that,” he added.

He also assured the panel that they have filed cases before the courts for the liquidated damages they cost the government.

The DPWH was also asked about the P118.401 billion delayed completion and non-implementation of projects due to inadequate detailed engineering brought by the absence of proper coordination between the local government unit and implementing agencies.

“The lack of technical viability, it was hard to hear because we are allocating a huge amount from the budget for a feasibility study, right?” Lacson asked.

Villar assured the panel that from the CoA observation, 81 percent of these projects have already been completed.

“Some of our allotments do not come in. For instance, we get allotments on the second half of the year, there are some delays that are really beyond our control. I think it’s part of the process,” the DPWH chief explained.

“If you look at it collectively, when you’re managing almost 40,000 projects, I would still say that a majority of our projects are still on-time. Certainly, there still are projects that do have delays for certain justifiable reasons,” he added.

Villar also told the panel that the budgetary process in Congress results in cuts in their feasibility studies and these were vital in the implementation of the public works projects.

“I suppose after a vigorous debate in Congress and the Senate, there were several priorities that were identified and we respect the wisdom of the senators and the congressmen,” he said, saying that the budget for feasibility studies is only less than one percent.

Lacson pointed out that lawmakers should not intrude in the allocation of budget for feasibility studies.

He also questioned an “overlapping” project involving two road concreting developments in Masbate.

It was found that the first project was funded in the NEP, but the other one was assumed to be an insertion from a congressman.

The projects overlapped by 300 lineal meters, but the cost per kilometer of each project differed. Lacson bared one cost P48 million per kilometer while the other project cost P38 million per kilometer.

Villar claimed this was due to different factors such as the topography of the area and slope protection works.

The senator pointed out that there should be at least P11.54 million to be saved from the two overlapping projects.

“If there are any unused portion or appropriation or savings as a result of the modification, then they cannot use it. And they have to return it to Department of Budget and Management,” DPWH Undersecretary Catalina Cabral assured the panel.

The DPWH 2020 budget was approved by the panel and will be sent to the Senate plenary for deliberations and debates.