Gov’t risks losing P6.46B from 747 flawed DPWH projects in 2024: COA

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

The projects in question were implemented by different DPWH offices nationwide, but remain idle due to the agency’s failure to strictly monitor the compliance of private contractors with the contracts. 

The Government Procurement Reform Act (RA 9184) mandates contractors to shoulder all expenses for repairs in case defects are observed, one year after the project completion.

Under the law, contractors who fail to comply with their obligations will be permanently disqualified from participating in subsequent bidding, and their performance security shall be 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, to the tune of P3.46 billion, or equivalent to 130 projects.

The highest number of botched projects, meanwhile, was recorded in Batanes, Cagayan, Isabela and and Nueva Viscaya at 183, with an aggregate amount of 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 the quality of the projects, 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, while 31 flawed projects worth P54.66 million were recorded in Abra, Baguio, Benguet, and Lower Kalinga.

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

Twenty-five projects totaling P407.45 million were likewise found 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 with the standard specifications of the contract, and contain unnecessary items, leading to extra work in excessive quantity.

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 swiftly repair and rectify the defects and deficiencies; otherwise, 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 over P180 billion in losses to flooding control projects since 2016.