13 years after Yolanda: ‘Unfinished housing’

CEBU, Philippines — Not a single housing unit intended for typhoon victims in Bogo City has been completed 13 years after Super Typhoon Yolanda devastated northern Cebu and the Visayas in November 2013, despite a ?217.48-million allocation from the National Housing Authority (NHA).

The NHA and Bogo City Government entered into a memorandum of agreement on March 6, 2019, for the development of a relocation site and construction of 750 housing units under the NHA’s Yolanda Permanent Housing Program.

The project had an allocation of ?217,476,219.45 from the NHA, to be released in staggered tranches based on project milestones validated by the NHA in Central Visayas.

Under the agreement, the city was responsible for procuring the required infrastructure, goods and services in accordance with Republic Act No. 9184, or the Government Procurement Reform Act. The NHA funds were also required to be used exclusively for activities specified in the approved program of work and detailed engineering design.

On Oct. 11, 2021, Bogo City received ?32,621,432.92 from the NHA as a 15% mobilization and advance payment for the development of 750 fully developed lots and housing units at St. Vincent Ferrer Homes 2 in Barangay La Paz.

But the Commission on Audit (COA) found that not a single unit had been completed as of Dec. 31, 2025. State auditors flagged the city government over the incomplete project despite the lapse of its revised completion period.

COA also noted that the advance payment remained entirely unrecouped as of Dec. 31, 2025, with accounting records showing no additional disbursements or progress billings.

“This indicates that no portion of the work has been certified for payment,” the auditors said, concluding that the project remained incomplete and had seen no substantial progress.

HOUSING TARGET CUT TO 387 UNITS

According to the city government, the project site encountered legal problems involving disputes among heirs that eventually reached the courts. The city also cited work suspension orders as the reason for the lack of on-site progress.

In September 2022, a budget shortfall in the NHA-Yolanda Permanent Housing Program allocation resulted in only ?105,058,219.45 of the original contract cost being obligated. This reduced the housing target from 750 units to 387.

The remaining ?79,796,567.08 was eventually deobligated by the NHA because of the project’s continued lack of progress.

COA, however, said the city had yet to submit sufficient documentation to justify the work suspensions and the revised project timeline.

The NHA inspection report cited several suspension orders, including a 210-day suspension from Sept. 22, 2020 to April 20, 2021 because of the enhanced community quarantine; a 90-day suspension for the revision and consolidation of the site development plan; a 390-day suspension involving the processing of project-critical documents; and a 270-day suspension related to riprap construction being undertaken by another contractor.

The report set a revised completion date of July 27, 2024.

But COA said the city had not submitted the required documents to substantiate the suspensions and had not provided a formal and updated status report.

COA said that even assuming the reported suspensions were valid, the project’s revised completion date had already lapsed.

As of Dec. 31, 2025, the contractor had incurred an aggregate delay of 522 calendar days from the revised completion date of July 27, 2024.

Based on COA’s audit computation, liquidated damages amounted to ?113,522,586.55 as of Dec. 31, 2025.

The computation was based on one-tenth of 1% of the contract cost for every day of delay.

COA cited Section 9 of Annex “E” of the Revised Implementing Rules and Regulations of Republic Act No. 9184, which requires the imposition of liquidated damages when a contractor fails to satisfactorily complete the work after the expiration of the contract period, including duly granted extensions.

Once liquidated damages reach 10% of the total contract price, the procuring entity may terminate the contract and forfeit the contractor’s performance security, or allow the contractor to continue the work while imposing liquidated damages, subject to applicable rules.

COA also questioned the city’s reliance on land disputes and permit acquisition as causes of the delay.

Under the project’s Terms of Reference, the land was supposed to have a clean title and be free from liens, encumbrances, tenants and unauthorized structures.

The contractor was likewise responsible for securing the necessary permits and clearances, including development and building permits and environmental compliance requirements.

COA said these requirements should have been considered in the original project timeline.

COA recommended that the city assess the project’s condition and consider terminating the contract pursuant to government procurement rules.

It also recommended the forfeiture of the contractor’s performance security, the computation and imposition of applicable liquidated damages, and a formal demand for the immediate return of the unrecouped ?32.62-million mobilization fee.

The city was further directed to submit documents supporting the work suspensions and revised project timeline and to provide a comprehensive, updated project status report with geotagged photographs and verified physical accomplishment reports.

During the exit conference, the City Accountant said management had decided to terminate the contract because of the prolonged inactivity and noncompletion of the project. The accountant also said action had been taken to recover the mobilization fee.

However, COA said no documentary evidence had been submitted to establish the recovery efforts, such as formal demand letters, notices or other records showing that collection proceedings had commenced.

COA also said the validity, duration and effect of the suspension orders still needed to be fully supported and evaluated before determining the contractor’s accountability for liquidated damages.

The City Accountant said the forfeiture of the performance security would be referred to the Legal Office.

The accountant also said the computation of liquidated damages would require further evaluation because of the approved suspension orders and their supporting documents.(CEBU NEWS)