CoA flags OTS on delayed projects

The Commission on Audit flagged the Office for Transportation Security for the delayed completion of its infrastructure project worth P87.63 million in 2022.

The project's construction, namely, OTS' Command Center Building, was set to be completed in June of last year under the contract.

However, audit findings revealed that only 69.27 percent were completed as of the target completion date, incurring a negative slippage of 25.99 percent.

"The basic consideration of the government for entering into a contract is the completion of the infrastructure project within a stipulated time so that the public may enjoy the intended social and economic benefits on time," CoA pointed out.

The budget allotted for the project, originally P90 million, was part of DoT's budget that was transferred to the Department of Transportation to implement other plans.

It was sourced from the DoT's expenditure under the 2018 General Appropriations Act.

State auditors stressed the cause of the delay in the implementation of infrastructure projects "reflects the inadequacy of planning, supervision, and monitoring of the government agencies concerned relative to the funding and project implementation."

"Notwithstanding the above reasons/causes, the intended beneficiaries of the projects were deprived of their immediate use," CoA said.

The state auditing body lamented that the procuring entity shall ensure the timely implementation of infrastructure projects by monitoring the performance of the contractors.

"When the contractor incurs negative slippage during the contract duration, the Procuring Entity shall implement the calibrated measures provided under the Government Procurement Policy Board Circular No. 03-2019 dated 8 March 2019, entitled "Guidance on Contract Termination due to Fifteen Percent (15 percent) Negative Slippage by the Contractor in Infrastructure Projects," it said.

CoA, therefore, ordered OTS to ensure that validity issues and timely release of funds that could delay project implementation are immediately followed up prior to or during the procurement or performance of infrastructure contracts.

Likewise, CoA said OTS should initiate prompt and appropriate action on the negative slippage of 25.99 percent incurred by the contractor.