COA flags Carcar’s idle projects, facilities

CEBU, Philippines — The Commission on Audit (COA) has flagged the Carcar City Government for having ?93.55 million worth of priority projects under the 20% Development Fund (DF) that remained unimplemented as of December 31, 2025.

The amount represents 60.29% of the city’s ?155.16-million appropriation for 20% DF projects, according to the 2025 financial audit report.

COA, in its Audit Report in 2025, but was released recently, said 53 projects had not yet started due to various issues, including unresolved land concerns, sites that were not ready for construction, incomplete preparatory documents, delays in procurement, and other funding and implementation concerns.

The audit team said several of these issues could have been identified and addressed during the planning stage, noting that projects funded under the 20% DF are required to be well-planned and procurement- and implementation-ready.

COA warned that the continued non-implementation deprived intended beneficiaries of expected services, infrastructure, and other development interventions.

The city’s City Planning and Development Office said unforeseen circumstances and implementation challenges prevented the completion of documentary and technical requirements for some projects. It added that the projects were identified as priorities because of their expected contribution to local development.

COA recommended stronger coordination among concerned offices and a more rigorous project evaluation process to ensure that only fully prepared and procurement-ready projects are included in the city’s investment and annual investment plans.

Meanwhile, COA also reported that three completed infrastructure projects costing a combined ?270.77 million remained idle or non-operational.

These were the ?19.99-million Water Treatment Facility in Takdog, Barangay Poblacion III, completed in 2018; the ?100.89-million Carcar City Public Transport Terminal, completed in 2020; and the ?149.89-million Livestock Auction Market at the New City Center, completed in 2024.

COA said the continued idleness of the facilities resulted in inefficient utilization of government resources and deprived the city and its constituents of their intended economic and social benefits.

The water treatment facility remained unused due to concerns over its mountainous location, accessibility, the absence of personnel and the lack of a septage collection truck. The facility also showed signs of deterioration during the audit inspection.

The city said it was considering repurposing the facility as a laboratory and field-learning site for the Agriculture program of Carcar City College.

Meanwhile, the public transport terminal remained non-operational due to incomplete components, including glass walls, a water tank, tiles, doors and windows, as well as the drop-off area. Repair and rectification works were reportedly being undertaken by the contractor under the warranty provisions.

For the livestock auction market, the city cited the absence of water supply, flooring, holding pens, electrical supply, a paging system, closed-circuit television cameras, and weighing scales.

The city is considering converting the facility into additional market stalls or relocating the night market there because of concerns over the suitability of livestock operations near the proposed City Arena, New City Hall and Public Market.

COA noted that the three idle projects had accumulated ?33.59 million in depreciation as of December 31, 2025, leaving a combined net book value of ?237.18 million.

The audit team recommended that the city conduct a comprehensive assessment of the idle projects, provide funds and resources to complete missing components, procure needed equipment, assign personnel, and establish concrete timelines for their operationalization.

COA also issued a qualified opinion on Carcar City’s 2025 financial statements, citing several accounting and financial reporting deficiencies.

Among the major concerns was a ?2.64-billion unreconciled difference between the gross balances of property, plant and equipment in the General Ledger and the Report on the Physical Count of Property, Plant and Equipment.

COA also questioned the reliability of the city’s ?562.32-million Loans Payable-Domestic balance because of a ?43.15-million unreconciled difference with loan amortization schedules. Accrued interest of ?1.34 million was also not recognized.

Other flagged accounts included inventories totaling ?187.38 million, real property and special education tax receivables, ?36.99 million in long-outstanding accounts payable, and breeding stocks worth ?8.24 million.COA said these deficiencies affected the reliability and fair presentation of several accounts in the city’s financial statements. (CEBU NEWS)