The Aurora Pacific Economic Zone and Freeport Authority (APECO) received a favorable 2024 Audit Observation Memorandum (AOM) from the Commission on Audit (CoA).

According to the 2024 Audit Observation Memorandum (AOM) issued by CoA, APECO recorded significant improvements in its fiscal management and operational efficiency as evidenced by various initiatives and programs since the agency’s new management arrived.

The findings underscore APECO’s successful implementation of cost-saving measures, stronger financial protocols, and a renewed focus on transparency and accountability.

For several years, APECO faced challenges in delivering on its mandate, with stalled infrastructure projects, low investor trust and engagement, and insufficient economic activity. However, the 2024 CoA AOM presents a turning point with CoA noting “a notable shift in operational activities,” including improvements in infrastructure, fiscal discipline, digital engagement, and stakeholder relations.

One of the standout achievements in the report is APECO’s effective cost containment and budget optimization strategy.

Through the strategic relocation of its offices to more cost-effective sites, APECO achieved direct savings of P1.449 million in 2024, with the agency projecting an additional P5.3 million in savings once it fully transitions to its new satellite office, secured through negotiations that locked in lower lease rates and minimal escalation clauses.

Emphasis on savings

“These results reflect our commitment to fiscal prudence and good governance,” Gil G. Taway IV, president and CEO of APECO, said, adding, “every peso saved is a peso that can be redirected to more critical needs — be it infrastructure development, investment promotion, or community programs.”

In addition to cost savings, APECO implemented new financial protocols that allowed it to identify and address longstanding discrepancies in land asset reporting. The Casiguran-based investment promotion agency also improved its budget utilization rate to 86 percent, including obligations and repurposed funds, reflecting its more disciplined and results-driven approach to resource management.

The CoA acknowledged these reforms as foundational steps in transitioning APECO from a period of institutional dormancy to one of proactive governance and forward planning.

The fiscal turnaround is part of a broader strategy that includes infrastructure upgrades, enhanced digital services, and recalibrating APECO’s strategic vision to align with national development priorities, such as food security, energy security, national security, continued tourism development, and advancing the inclusion of Indigenous Peoples.

APECO’s fiscal reforms were complemented by efforts to reduce redundancy, modernize its operations, and invest in digital tools and assets. The purchase of Information and Communication Technology (ICT) equipment — ranging from office equipment to CCTV systems — while simultaneously launching APECO’s website, acquiring official govmail for communications and activating a branding campaign under the banner “Bagong APECO,” were concerted efforts at boosting organizational transparency and investor confidence.

Moreover, APECO demonstrated stronger governance by suspending visa operations while conducting a comprehensive audit of its visa holders, revealing over 2,400 irregularities. This led to a Board-approved recommendation to cancel all illegally issued resident visas, emphasizing the Authority’s zero-tolerance policy toward regulatory lapses.