The Commission on Audit (CoA) called out Butuan City over the failed implementation of seven development projects with a total budget of P92.5 million, which denied Butuanons of socio-economic benefits.

In a 2023 report, CoA said the initiatives remained unimplemented as of the end of 2023 because these were “not procurement and implementation-ready.”

The development projects were part of the local government unit’s (LGU) programs, projects, and activities or PPAs, with a total budget of P461,236,500, chargeable against the 20 percent development fund (DF).

Of the sum, P418,700,100 was allotted to construct water supply and drainage systems, road gaps, and government buildings and facilities.

The audit team obtained the accomplishment report for December 2023, where they found that the construction of the Dumalagan Water Supply System and the development of the Butuan City Rice Research Center were canceled for budget reallocation and revision of project design.

Lineup of projects

The procurement process for the construction of water supply systems for Barangays Mandamo, Amparo, and Bugsukan, completing the SP Building, and rehabilitating the City Hall Compound Power Supply are ongoing.

The development of Butuan City Rice Research Center Phase 2 accounted for the biggest chunk of the budget at P34.5 million, followed by the rehabilitation of the City Hall compound power supply and completion of the SP Building at Barangay Doongan, both costing P20 million.

“Considering the above conditions, the funds allocated for priority development projects were not optimally utilized by year-end due to cancellations and delayed implementation,” the auditing body said.

State auditors said the non-implementation of the projects violated item 3.2.1 of the Joint Memorandum Circular 1 issued by the Departments of Budget and Management, of Finance, and of the Interior and Local Government, mandating that the 20 percent DF shall be utilized to finance the LGU’s priority development projects.

The Butuan LGU, however, informed CoA that they had already sent the Notice to Proceed to the winning bidder for the construction of water supplies last 5 February and that they also held a pre-bid conference for SP Building completion on the same day.

Butuan officials assured auditors that they also continuously facilitate procurement activities to ensure they are within the prescribed timelines.