State auditors flag UP over 2012 digital project

The UP Oblation in front of Quezon Hall of the University of the Philippines in Quezon City. Inquirer photo/Richard A. Reyes

MANILA, Philippines — The University of the Philippines (UP) System has failed to implement audit recommendations on a digital infrastructure project that has been languishing since 2012, according to the Commission on Audit (COA).

In its audit report for 2023, COA said the state university had yet to impose sanctions and enforce its rights in connection with its P134.6-million eUP Project.

The eUP Project, supposed to be a flagship project of former UP president Alfredo Pascual in 2012, was intended to “modernize” the computer systems of all 17 UP campuses.

Under Pascual, UP partnered in 2012 with ePLDT and Smart Communications Inc. for the project that was supposed to run software from the US software giant Oracle.

READ: UP campuses now digitally connected [2012]

In response to the COA report, the UP System on Wednesday said the matter was considered “closed” since it had reached a “mutually acceptable and fair settlement” with ePLDT Inc.

But COA said that UP has not indicated if it received compensation for liquidated expenses or imposed sanctions on the telecom firm.

Among the COA’s recommendations last year was to deduct liquidated expenses from any money due to ePLDT Inc.

State auditors also urged UP to impose “appropriate sanctions over and above the liquidated damages” to be paid as prescribed by procurement laws.

According to COA, the imposable liquidated damages already amounted to P39.7 million as of Nov. 30, 2022, which it said already caused damage to the UP System, particularly its students.

But UP told COA that its Information Technology Development Center had yet to verify the total imposable damages.

No update

It also said that a memo was already drafted blacklisting ePLDT from other projects.

But COA said no memo was submitted nor were there any updates that UP had already complied with the recommendations.

In a statement to the Inquirer, the UP System said that it negotiated a settlement with ePLDT, but did not say whether it addressed outstanding legal issues.

“Various settlement meetings were held, until both UP and ePLDT reached a mutually acceptable settlement that is not disadvantageous to the university,” it said.

It did not specify if it had implemented the recommended penalties or disqualified the telecom firm from future projects.