CoA flags OSG’s P632-M rental costs

The Commission on Audit (CoA) has questioned the Office of the Solicitor General’s (OSG) continued reliance on leased office spaces and parking lots, saying the funds spent on rentals could have been used to construct or acquire a permanent facility.

State auditors said the OSG had spent a total of P632.48 million on leases and rentals since 2007, with annual expenses steadily increasing through 2025.

In its annual audit report, CoA noted that the OSG’s eight-story main headquarters, acquired in 1982, could no longer meet the operational requirements of its growing workforce and had developed significant safety concerns due to its aging structure.

Inspections by the Department of Public Works and Highways (DPWH) and GIBMA Engineering Services reportedly confirmed these concerns.

The inspections recommended reducing the building’s structural load, citing several factors, including the large volume of paper documents stored inside. GIBMA also recommended retrofitting the structure to ensure its integrity and the safety of personnel.

CoA said the OSG received an allotment for the retrofitting project, but the amount was insufficient to cover its full cost. In 2022, the agency secured a special allotment release order to relocate offices occupying the building’s upper floors.

The audit findings, CoA said, underscored the need for the OSG to invest in a permanent facility, particularly as the leased property was scheduled for redevelopment 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 said.

While recognizing that the OSG had to lease additional office spaces and parking areas out of necessity, CoA said the agency had relied on the short-term arrangement for an extended period.

Given the cumulative rental costs, state auditors said the funds could instead have been used to construct or acquire a permanent facility that would provide long-term benefits.

The OSG is reportedly evaluating buildings that could accommodate its entire organization. The Department of Budget and Management and the Department of Finance have recommended financing the acquisition through a government financial institution.