Blacklist erring contractors, CoA orders PCG

The Commission on Audit has ordered the Philippine Coast Guard to blacklist erring contractors who have failed to complete 90 infrastructure projects, with aggregated funding of P2.204 billion, by the end of 2022.

In its 2022 report, the state auditors revealed that the long-stalled projects had been delayed for over nine years.

CoA said the overdue projects run counter to the mandate of Republic Act 9184, which states that "once the contract duration expires, including any time extension duly granted, and the contractor refuses or fails to complete the work satisfactorily, the procuring entity shall impose liquidated damages upon the contractor in default."

In addition, it contravened CoA Circular No. 94-013 on the loss and wastage of government funds.

The PCG informed state auditors that while 42 of the 90 delayed projects, with a total contract cost of P175.992 million, had received notices to terminate owing to the "contractor's default and non-viability of sites for building construction," no final notices of the decision to terminate were issued to the contractors.

The PCG said it had included the computed liquidated damages to be demanded from the contractors in the notices, but it had yet to receive a response from the contractors.