The Commission on Audit (CoA) has recently called out the local government of Cebu City’s alleged inaction to get back P199.23 million for a failed implementation of a drainage project.

In a statement, the CoA disclosed that 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 percent mobilization amounting to P199,323,870.75 granted in 2021 relating to its Construction of Drainage Mains Project with a contract cost of P1,328,825,805 which failed to progress beyond the design stage even long after the contract expiration,” said the state auditors in the city’s 2023 annual audit report.

The CoA also stressed that the city’s prolonged inaction in recovering the money not only made the project “futile” but also deprived the local government unit of substantial funds for other projects.

It also noted that the city would be at a disadvantage with “the consistent decline in the value of money over time.”

DAILY TRIBUNE tried to interview Cebu City Mayor Raymond Alvin Garcia but has yet to reply.