COA to DPWH: Sanction erring contractors

MANILA, Philippines — The Department of Public Works and Highways (DPWH) has failed to impose sanctions on the contractors of 24 delayed infrastructure projects worth P719.691 million.

It has also yet to collect P681.951 million in advance payments made to the contractors of 414 infrastructure projects that were either completed, rescinded or terminated, according to the findings of the Commission on Audit (COA).

In a recently released 2020 audit report, the COA also called out the DPWH over P339.105 million worth of technical defects found in 165 infrastructure projects.

“It is the mandate and mission of the DPWH to provide and manage quality infrastructure facilities and services responsive to the needs of the Filipino people,” it said.

Based on the findings of a COA team, 24 projects worth P719,691,830.60 were finished beyond the target completion date stated in the contract, with the delays ranging from 14 to 622 days.

“No liquidated damages were imposed and collected from the payments made to the contractors,” it said, adding that government was deprived of the chance to be indemnified for damages.

The DPWH was also called out for not recouping P681,951,728.01 in advance payments made to 414 contractors whose infrastructure projects were already completed, rescinded or terminated as required by the Government Procurement Reform Act.

DPWH personnel explained that one of the reasons for this was the contractors’ late or nonsubmission of final billings along with required documents, despite the agency’s written or verbal requests.