The Commission on Audit (COA) flagged the Department of Transportation (DOTr) in its 2024 audit report for unutilized and idle government assets, particularly at its Caraga office and several units of the Land Transportation Office (LTO).
COA said that during the year-end physical count of Property, Plant and Equipment (PPE), multiple assets were found unutilized, exposing them to the risk of deterioration and loss and resulting in the wastage of government funds.
The audit noted that several LTO offices, including the Sectoral Office, National Capital Region (NCR), and Region III, had idle Information and Communication Technology Equipment (ICTE) worth ₱34,905,303.05.
According to COA, the non-utilization of the equipment not only exposed it to deterioration and loss, but also deprived the agency of the economic benefits and service potential that could be derived from its use, contrary to Section 2 of Presidential Decree No. 1445.
“It is the declared policy of the State that all resources of the government shall be managed, expended or utilized in accordance with law and regulations, and safeguarded against loss or wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and effectiveness in the operations of government,” COA highlighted in its report.
The concerned LTO offices agreed with COA’s recommendations, including the submission of an action plan to maximize the use of idle items, the designation of property personnel to prepare PPE issuance, and the possible return of equipment no longer useful in field operations.
COA also flagged 35 uninstalled generator sets worth ₱32,218,000, based on its December 31, 2024 observation at LTO-NCR, LTO-III, and DOTr-Caraga. The generators were received from LTO-SHO but had remained idle for more than two years.
“The generator sets were supposed to ensure the uninterrupted Agency’s operation and use of the equipment despite occasional brownouts that occur within the area,” COA stated.
“However, it was observed that the generator sets remained uninstalled and unutilized as at December 31, 2024, thereby defeating the purpose for which they were procured and transferred.”
DOTr-Caraga and LTO-NCR agreed with COA’s recommendation to direct property personnel to assess the status of the generators, ensure proper maintenance, and secure the units from exposure to heat, rain, and flooding that could accelerate deterioration. The offices were also directed to request the installation of the generators to ensure their use.
Meanwhile, COA recommended that LTO-III coordinate with LTO-SHO for the possible return or transfer of its idle generator set, noting that the original intended location is already situated inside a mall equipped with its own generator system.