COA flag Cebu City's failed drainage project at P199-M

The Commission on Audit (COA) called out the Cebu City Government's inaction in recovering P199.23 million for the failed implementation of a drainage project.

The amount was 15 percent mobilization fee paid to A.M. Oreta Construction Corp.

"The City did not show concrete effort to recover the amount of the 15% mobilization, amounting to P199,323,870.75, granted in 2021 for its Construction of Drainage Mains Project, which had a contract cost of P1,328,825,805, but failed to progress beyond the design stage long after the contract expired," state auditors said in the city's 2023 annual audit report (AAR).

COA stressed that the city's prolonged inaction in recovering the money not rendered the project "futile" but also deprived the local government unit (LGU) of substantial funds for other projects.

It also noted that the city would be at a disadvantage due to "the consistent decline in the value of money over time."

The DAILY TRIBUNE tried to interview Cebu City Mayor Raymond Alvin Garcia, but as of this writing, he has not responded on the matter.