CoA flags OSG’s continued reliance on leased property

The Commission on Audit (CoA) challenged the decision of the Office of the Solicitor General (OSG) to lease properties for its facilities rather than using government funds for the construction or acquisition of a permanent building.

State auditors said that the OSG had incurred a total expenditure of P632.48 million from leasing and renting office spaces and parking lots from beginning in 2007, with expenses gradually increasing up to 2025.

It was noted in CoA’s annual audit report that the main headquarters of the Solicitor General, an eight-story building acquired in 1982, could no longer meet the operational requirements of its growing staff and had significant safety hazards due to its aging structure.

Concerns were reportedly substantiated through a series of inspections conducted by the Department of Public Works and Highways and GIBMA Engineering Services.

The inspections yielded recommendations to reduce overloading in the building caused by several factors including the voluminous paper documents stored in the building.

GIBMA had recommended for the structure to undergo a retrofitting which would ensure its structural integrity and the safety of personnel in the facility.

CoA said that the OSG received an allotment for the project that reportedly fell short to cover the full cost of the retrofitting.

The agency would subsequently secure a special allotment release order in 2022 for the relocation of offices situated in the upper floors of the headquarters.

State auditors said that the findings highlighted the need for the OSG to consider investing in a permanent facility, particularly as its lease was set to be redeveloped by 2029 to 2030.

“The structural infirmities of the OSG main building, coupled with the extended operating lease of its office spaces, highlighted the need for a new, permanent/long-term facility that can provide better working conditions and enhance the office’s branding,” the report read.

CoA further stated that while it acknowledged that the OSG resorted to leasing additional office spaces and parking lots out of necessity, its reliance on such a short-term arrangement had already gone on for an extensive period.

Given the costs of the approach, state auditors maintained that the funds used could have been allocated for the construction and acquisition of a permanent facility—providing a long-term benefit.

It was noted that the OSG was in the process of evaluating buildings that it could potentially acquire which would accommodate its entire organization.

The Department of Budget and Management and Department of Finance reportedly recommended the financing of the said acquisition through a Government Financial Institution.