DPWH yet to recoup P440M advance payments from rescinded, terminated projects

Photo from Department of Public Works and Highways Facebook page

MANILA, Philippines — Some P440 million worth of advance payments made to contractors of infrastructure projects that were either completed, rescinded, or terminated remain uncollected, the Department of Public Works and Highways (DPWH) disclosed Tuesday.

DPWH Assistant Secretary Marichu Palafox disclosed this during the Senate deliberations on the proposed 2022 budget of the agency.

“Out of the P681.9 million unrecouped from contractors, P241 million was recouped as of July 31, leaving an unrecouped balance of P440 million,” Palafox said upon the inquiry of Senator Panfilo Lacson.

“This will be recouped upon the presentation of their billings,” Palafox added.

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P681.951 million in advance payments made to the contractors of 414 infrastructure projects that were either completed, rescinded, or terminated.

The Government Procurement Reform Act requires the DPWH to recoup advance payments made to contractors when projects are already rescinded or terminated.

DPWH personnel has 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.

EDV