CoA flags P108.5-M unfinished housing

The Commission on Audit (CoA) has flagged an unfinished P108.5-million housing project in Barangay Lorega, Cebu City, leaving at least 170 urban poor families waiting for their homes.

The five-story tenement housing project, which began in October 2020, was supposed to be completed within 300 days, or by 30 August 2021.

But more than five years after construction began, the project remains unfinished, despite the Cebu City government having disbursed P108.5 million as of 31 December 2025.

CoA said deficiencies in contract administration and project implementation prevented auditors from fully determining whether the disbursements were proper, valid and legal, raising concerns over the possible wastage of public funds.

Auditors inspected the project site in March 2026 and found structures showing signs of deterioration and dilapidation.

CoA also noted that the reasons cited for suspending construction, including the absence of business permits and unapproved designs, were the contractor’s responsibility to secure. These, auditors said, undermined the justification for granting extensions instead of imposing penalties.

Construction also began before the project secured its locational clearance and building permit, in violation of the National Building Code of the Philippines.

The project had an original contract cost of P227.5 million. CoA’s cost evaluation, however, found that the contract price was inflated by P42.8 million, or 23.2 percent.

The audit agency attributed the difference to overstated material quantities for concrete works, masonry, waterproofing and other items, as well as markups for overhead and contractor’s profit that exceeded Department of Public Works and Highways rates for similar projects.

The findings cast fresh doubt on the implementation of the city’s pilot socialized housing program, while the intended beneficiaries continue to wait for the completion of their homes.