Due to technical defects and deficiencies, the government risks losing a staggering P6.46 billion from 747 projects that were not properly executed by the Department of Public Works and Highways (DPWH) in 2024, in violation of the law, according to the latest Commission on Audit (CoA) report.

The projects, implemented by various DPWH offices nationwide, remain idle after the agency failed to monitor private contractors’ compliance with contract terms strictly.

The Government Procurement Reform Act (RA 9184) mandated contractors to shoulder all repair expenses if defects are observed within one year after project completion.

Under the law, contractors who fail to comply with their obligations will be permanently disqualified from participating in subsequent bidding and will have their performance security forfeited.

However, due to the DPWH’s negligence in failing to properly supervise and monitor the implementation of the projects, government resources totaling P6,459,027,368.59 are at stake.

The breakdown of the defective projects showed that Region 6 (Western Visayas) accounted for the lion’s share, amounting to P3.46 billion, or 130 projects.

183 failed projects

The highest number of endangered projects, meanwhile, was recorded in Batanes, Cagayan, Isabela and Nueva Viscaya, totaling 183 and amounting to P52.36 million.

Inspection by state auditors revealed cracks in posts and concrete railings, damaged pavement, raveling, water leaks, collapsed revetment walls, and unfinished paintings, among others.

Over P84.60 million worth of 153 defective projects were also logged in Marinduque, Southern Mindoro, Mindoro Occidental and Oriental, and Palawan due to cracks, busted bulbs, major scaling, and damaged sections on the slope protection.

“The foregoing technical defects and deficiencies may compromise the safety of the public, cause further destruction of the infrastructures, and ultimately result in the wastage of government funds and resources if not immediately addressed,” the CoA said.

In Lanao del Norte and Misamis Oriental, 73 projects worth P1.56 billion were reported to be completed, but were either deficient or unfinished within contract duration, in violation of RA 9184.

The CoA also flagged 55 projects costing P769.34 million in Cagayan de Oro, Lanao del Norte and Misamis Oriental due to overstated contract costs of P58.29 million, which mainly affected project quality, leaving the government at a disadvantage.

Forty-eight projects with unspecified amounts were also found with insufficient asphalt and missing structures, among others, in Leyte and Tacloban. In comparison, 31 flawed projects worth P54.66 million were recorded in Abra, Baguio, Benguet and Lower Kalinga.

Meanwhile, state auditors also found damaged structures, the use of substitute items, and soil erosion in 31 projects in Albay, Camarines Sur, Catanduanes and Masbate, totaling over P4 million.

Twenty-five projects totaling P407.45 million were likewise found to have been improperly executed, while nine were flagged in Zamboanga Sibugay and Zamboanga del Sur.

In Surigao del Sur and Agusan del Norte, six projects with a price tag of P13.07 million were found non-conforming to the contract’s standard specifications and contain unnecessary items, leading to excessive quantities of work.

Lastly, three projects in Pangasinan, amounting to P45.72 million, also had minor and major scaling and settlement cracks in intermittent sections. As a result, the auditing body ordered the DPWH to require the concerned contractors to repair and rectify the defects and deficiencies swiftly; otherwise, to forfeit their performance security and blacklist them if warranted.

Earlier this week, Senator Ping Lacson, who heads the Senate probe into the fraudulent flood control anti-flood projects, projected that the government likely incurred losses of over P180 billion on flood control projects since 2016.