COA slams DOTC underspending in 2015

MANILA, Philippines – Because of poor planning, the Department of Transportation and Communications (DOTC) failed to spend P33.448 billion or 48 percent of its budget last year for projects that could have benefitted the public.

 In a report released yesterday, the Commission on Audit (COA) said the underutilization of DOTC funds “is reflective of management’s failure to maximize its authorized budgetary allocations and casts doubts on its readiness to execute the programs.”

The COA noted that of the total budget of P69.683 billion that DOTC received in 2015, only P36.234 billion was obligated, leaving an unused balance of 48 percent amounting to P33.448 billion.

Of the unused funds, P23.046 billion was considered continuing appropriations for 2016 while P10.401 billion lapsed and was reverted.

State auditors also said appropriations for 30 projects totaling P8.134 billion were without any obligation during the year, implying projects that were not started or implemented.

The audit team said the DOTC should maximize the use of the allotments received through proper planning and improved efficiency of its procurement process for the timely implementation of programs and projects in order to avoid expiration and or accumulation of unobligated funds.

State auditors also advised the DOTC to revisit the existing procurement policies and consider decentralizing the procurement process if needed to ensure the timely accomplishments of planned projects or activities.

DOTC blames issues, constraints

In its defense, the DOTC blamed issues and constraints like the transition in the preparation of project detailed engineering designs.

It also blamed the delays in bidding and award of contracts for foreign-assisted projects due to the required confirmation of funding agencies.

Officials cited a temporary restraining order issued by a court, delays in the perfection of the Deed of Sale relative to Integrated Transport System, prolonged procurement due to numerous request for reconsideration of losing bidders, projected billings not submitted by contractors on time, and lack of enough manpower due to unfunded plantilla positions.

They also blamed the constraints in the engagement of technical personnel to handle the procurement and implementation of projects, and delay in the right of way acquisition for various infrastructure projects.

The COA rejected these reasons, saying that DOTC’s “claim of problems on projects’ engineering designs, availability of technical personnel, etc. are things that should have been considered during the planning stage and/or submission of the projects to be funded. We stand that good planning will ensure that resources are ideally utilized.”