CoA flags OSG over ‘enormous’ spending

The Commission on Audit (CoA) has flagged the Office of the Solicitor General (OSG) for spending P488 million on the lease and renovation of its offices and parking spaces, which state auditors tagged as “enormous” and could have been “used for other needed capitalization.”

In its 2023 report, CoA discovered that the OSG had spent a total of P488 million for rent, utilities, repairs and renovations of its leased office spaces and parking lots from 2007 to 2023.

The OSG office on Amorsolo Street in Makati City had been its headquarters for the past 41 years after it executed a conditional deed of sale with the seller Pacific Resources Corporation.

The OSG bought the property, which was then under construction, on 16 July 1982. The building was initially designed to be a residential condominium, but the OSG repurposed it to office space and added more floors for its growing number of employees.

A prior inspection by the audit team found that some portions of the building’s old structure remained functional, notwithstanding the risks and potential dangers due to the aging infrastructure, but it no longer suited the increasing number of employees.

Joint circular

A joint circular of the Department of Budget Management and Department of Public Works and Highways (DPWH) dated 20 October 2016 ordered the rehabilitation, construction, and acquisition of government offices.

The circular mandated that existing buildings and lots undergo rehabilitation or complete demolition provided it was highly recommended by the DPWH after considering factors such as degree of structural defect, building standards, and higher cost of rehabilitation, among other things.

In compliance, the OSG in 2008 began the construction of a new building. Budgetary constraints, however, limited the government’s capacity to finance the capital outlay for the building.

The construction also did not happen between 2010 and 2016 as the government prioritized fiscal stability and putting primacy on social services.

In 2018, the OSG building was inspected, and cracks due to the voluminous legal documents that contributed to the overloading were noted, and which may have led to its eventual collapse.

The following year, 2019, GIBMA Engineering Services recommended unloading the substantial weight and retrofitting the building.

On 9 September 2022, the DPWH conducted an ocular inspection on the OSG’s request following the magnitude-7.0 earthquake that struck Northern Luzon.

In concurrence with GIBMA, the DPWH recommended significantly reducing the loads in storage areas, especially those with solid floor vibrations, and noted the damage to slab soffits.

The OSG requested a budget for retrofitting, which DBM approved. However, the allocation could not cover the total projected cost for the undertaking, prompting the OSG to request a new modification of the allotment for maintenance and other operating expenses to cover the funding requirements.

While the CoA acknowledged the OSG’s decision to lease office space and parking lots to address the current and future office space requirements, it stressed that the agency had been leasing “for so many years and should have already endeavored to build its own infrastructure that is central to its operations.”

“Renting is a short-term solution with no long-term gains in terms of allocating scarce resources. The amount could have been earmarked and used for other needed capitalization,” the auditing body said.

‘Legacy project’

In a message to DAILY TRIBUNE, Solicitor General Menardo Guevarra said the agency, under his governance, will “embark on a legacy project” to find or construct a new, safe, and modern building for the entire department.

“The main OSG building was originally meant to house 10 legal divisions only,” Guevarra said.

“Now there are 30 legal divisions. The building has been overloaded and now suffers from structural instability.”

State auditors recognized the constraints faced by the OSG but they remained firm in their order to fast-track the relocation plan’s implementation for safety purposes.