COA calls out Cagayan de Oro for P211 million in uncompleted projects

CAGAYAN DE ORO, Philippines – The Commission on Audit has called out the Cagayan de Oro city government regarding some P211 million in uncompleted construction projects, some of which were started as early as 2018.

Auditors said the projects were not completed within the specified period, contrary to provisions in the contracts and the Revised Implementing Rules and Regulations of the Government Procurement Reform Act.

As of September 30, 2022, the auditors noted that the projects implemented by city hall were delayed between four to 855 calendar days.Responding to the audit report, the City Engineer’s Office wrote to the COA in January and blamed the delays mainly on restrictions in the mobilization of construction workers due to the COVID-19 pandemic and erratic weather conditions that resulted in flooding and landslides in some areas of the city.

According to the COA, the law “emphasizes the need to settle issues on the project site before actual implementation takes place to avoid or mitigate interruptions.” Despite the project delays, city hall did not impose liquidated damages on the contractors, contrary to the rules set by the government.

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