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COA lifts notice of disallowance on P2.199 million Biliran road project

/ 10:20 AM January 07, 2020

MANILA, Philippines – The Commission on Audit (COA) has affirmed an earlier appeal from the governor of Biliran province, saying that a road project in Naval town was not overpriced by P436,241.

In its decision last December 2 but was only released recently, the COA agreed with Biliran Governor Gerardo Espina Jr. and the provincial government of Biliran — who previously appealed that the notice of disallowance (ND) on the Housing Road Network (Phase I) Project at Naval’s Barangay Larrazabal be lifted.

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The notice of disallowance was issued on the P2.199 million project which implemented by EB Cordero Construction after it was reported that it was incomplete.

The audit team leader (ATL) in the area said the project should only be priced as P1.763 million, because of an error in the computation of how much of the aggregate base course — a sub-layer of asphalt roads — were used in the project.

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However, the COA noted in its decision signed by Chair Michael Aguinaldo and concurred by Commissioners Jose Fabia and Ronald Pondoc that since the provincial government had rectified the error through additional work — certified by the same ATL — the ND should be lifted.

“Having rectified the cost discrepancy attributed to the unimplemented volume of Item 201 (Aggregate Base Course) amounting to P436,241.63, the disallowance is now settled,” COA said.

“Hence, justice and equity dictate that the ND, no longer serving its purpose, should be lifted, absolving the persons/officials concerned from liability for the disallowance,” they added.

COA said that additional work through the Variation Order No. 15 from the provincial government corrected the miscalculations.

“Governor Espina filed an appeal alleging that the said disallowance was already corrected before the issuance of the ND dated January 21, 2011, through Variation Order No. 15 issued on December 15, 2010, after the inspection of the COA Engineer and the Project-in-charge on December 10, 2010,” COA explained.

“The variation order/additional work was implemented and completed on December 20, 2010 and was duly inspected by the project-in-charge on December 21, 2010 as certified by the Provincial Inspectorate Team,” they added.

The commission also noted that the additional work was 11.6 percent higher than the original cost of P2.199 million, as the expenses incurred totaled to P2.475 million.

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Edited by MUF
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TAGS: Biliran, COA, Commission On Audit, Governor Gerardo Espina, Naval, ND, notice of disallowance, Philippine news updates, road project
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