OCD called out over P1.416-M advance payments

The Commission on Audit called out the Office of Civil Defense over unrecouped advance payments it awarded to its previous contractors totaling P1.416 million in 2022.

In its annual report, state auditors discovered that the OCD's
P1.416-million advance payment "was not recouped from the progress payments made to the contractor and upon the termination of the contract, which may cause loss of government funds if the same is not recovered."

The outstanding account as of year-end of 2022 pertains to the remaining advance payment to Rogenox Construction and Supply Corporation for the project "Site Development of OCDRO V Operations Center and Replication of affected PAF Facilities."

Audit findings revealed that the project was terminated in September last year, owing to the non-completion of the project within the fund validity period, as the area for the construction of the Ammunition Dump and Petroleum, Oil and Lubricant Dump had yet to be determined.

Given the rationale, CoA revealed the remaining advance payment was not recouped from the contractor despite the project's termination.

State auditors lamented that OCD had not taken necessary actions to recover the amount, either through a return refund or forfeiture of the contractor's corresponding surety bond.