CoA questions recoupment delay of P40M cash advances from MMDA contractors

The Commission on Audit (CoA) flagged delays in the Metropolitan Manila Development Authority’s (MMDA) recoupment of P40 million in cash advances from contractors of terminated or abandoned projects in 2025.

In its annual audit report, CoA said that the amounts were intended as an Advance to Contractors concerning nine infrastructure projects–all of which were located in different parts of Metro Manila.

“Advance payments are granted to contractors to support mobilization and implementation of projects, subject to recoupment through progress billings or recovery in accordance with contract provisions and applicable procurement laws,” the report read.

A particular project cash advance that remains unrecouped concerned the upgrading of traffic signal systems in 155 intersections, meant to be integrated into the Traffic Signal Control System at the New Command Center.

The project remained pending due to issues surrounding the alleged failure of the awarded contractor to fulfill their obligations based on the contract.

State auditors noted that a pending case against the contractor was “already endorsed and is currently being handled by the Office of the Secretary General” as of 2 January 2025.

A separate project with an unrecouped balance of P9 million was also identified by the auditing agency concerning a neighborhood upgrade project intended to implement nature-based solutions along the San Juan River.

It was stated that the contract of the project was terminated in 2025 and has been re-opened for public bidding on 30 January 2026.

Noting the existence of the outstanding unrecouped balances, CoA said that there was a “need for sustained monitoring and timely coordination among offices concerned to facilitate recovery and ensure that government funds are used for their intended purpose.”

CoA further stated that the recoupment efforts “may require additional administrative effort” to ensure that such issues were identified and promptly resolved.

State auditors noted that the MMDA has expressed its commitment to “expedite the collection of outstanding balances” and that the list of contractors with unrecouped amounts was already provided to the Legal and Legislative Affairs Service (LLAS) of the agency.

It had likewise instructed LLAS to pursue appropriate charges in court to recover the long outstanding balances from contractors.