The Commission on Audit (CoA) has identified over P159.86 million worth of unfinished and unimplemented projects in Agusan del Norte, raising concerns about the provincial government’s adherence to development fund guidelines.
According to the CoA report, the provincial government had a budget of P280,383,111 last year, designated for 51 development projects and the amortization of two loans under the 20 Percent Development Fund (DF). The budget was divided into allocations of P232,250,973.41 for development projects and P48,132,137.59 for the DF, intended to support various local initiatives.
The Annual Investment Program stipulates that all projects under the 20 percent DF must be completed by December 2023. However, CoA’s audit revealed significant delays.
As of the end of 2023, 20 projects valued at P80,950,973.41 had not yet been implemented, and an additional 10 projects, totaling P78,906,000, remained unfinished.
CoA emphasized that the low rate of project implementation violated Joint Memorandum Circular (JMC) 1, issued in November 2020 by the Departments of Budget and Management, Finance, and Interior and Local Government.
The JMC requires local government units to ensure that development projects funded by the 20 percent DF are well-planned and ready for procurement and implementation.
The audit also highlighted delays in the procurement process for 20 projects scheduled for 2023. These delays were attributed to late submission of necessary documents and unsuccessful bidding processes.
“The aforesaid circumstances are an apparent indication that the projects funded from 20 percent DF were not procurement- and implementation-ready, thus, the benefits that could have derived therefrom were not optimally enjoyed by the constituents,” the CoA report stated.
The commission urged that these projects be completed within the year to avoid further violations and ensure the intended benefits reach the public.
In response, the provincial government of Agusan del Norte attributed the delays to the need to prioritize various projects funded by other agencies. They argued that these projects, due to their significant potential contributions and impact on sustainable development, could not be declined.