Coast Guard flagged for P 1.3-B unfinished projects

State auditors have flagged the Philippine Coast Guard (PCG) for not terminating 89 unimplemented or uncompleted projects worth P1.359 billion, and for not imposing sanctions on their contractors.

The Commission on Audit (COA) noted that contractors in 14 projects were granted P8.58 million in advance payments even if the projects were still not implemented at end-2020.

“The failure to terminate, blacklist the erring contractors, impose liquidated damages and recover the advance payments from contractors due to lack of adequate control mechanisms in project monitoring deprived the public of the benefits that could have been derived from the immediate and maximum use of the said projects and could lead to loss and wastage of government funds,” a 2020 audit report on the PCG said.

The PCG, an attached agency of the Department of Transportation, is tasked with enforcing maritime laws.

The COA found that 60 projects worth P798.01 million were supposed to have been implemented from 2014 to 2020, but have remained unimplemented as of end-2020.

These projects include the construction of lighthouses, coast guard stations and radar stations across the country; the overhauling of engines and retrofitting of PCG ships; and the purchase of communication equipment, rubber boats, buoys and reflective panel boards.

Another 29 infrastructure projects worth P560.84 million were not completed or were still ongoing at the end of last year, even if the projects were due for completion from 2014 to 2020.

These are the construction and installation of perimeter fence and light; construction of lighthouses; construction and installation of generator set pad and wirings; construction of coast guard stations; and repair of PCG ships.

Despite the noncompletion of the projects, the PCG did not initiate legal proceedings to terminate the contracts.

No penalties and liquidated damages were meted out on erring contractors, contrary to Republic Act No. 9184, or the Government Procurement Reform Act’s implementing rules and regulations.

In addition, a contractor was still allowed to submit bid offers and was awarded five projects in 2018. This was despite its failure to complete five projects for the construction of lighthouses, which were due for completion from May to August 2014.

The PCG, instead of penalizing or blacklisting the contractor for the noncompletion of the projects, “awarded more projects to said contractor.” INQ