COA slams PNP for construction of P534-M offices in unowned lots

MANILA, Philippines — The Commission on Audit has raised concerns over the Philippine National Police's construction of stations and field offices in Central Visayas with total cost of P534.332 million in lots which it does not own.

“In PRO 7 (Police Regional Office 7), public funds totaling P534,332,971.15 spent for the construction and improvements of buildings and field offices/police stations may be wasted due to absence of absolute ownership by PNP over the lots donated by LGUs (local government units), private persons and other entities,” the COA said in its annual audit report posted on its website yesterday.

The audit body noted that of the 87 lots where the police stations and field offices were constructed, only four are covered with Certificate of Land Titles.

The COA said application for titles for 11 lots are still pending either before the courts, the Office of the Register of Deeds or the Bureau of Internal Revenue.

The audit body noted that the remaining 72 lots are just covered by conditional deeds of donation and “other alternative modes of ownership/right” which are not absolute.

For instance, the COA said the Camp Sotero Cabahug where the Cebu City Police Office was constructed is just covered by a Presidential Decree.

“It bears emphasis that the issuance of Presidential Decree is not an ownership per se but a right to use for police related functions and would not take the place of a title,” the COA pointed out.

The audit body said that with the absence of absolute ownership over the lots, the PNP put the government in a disadvantage situation as it stands to lose public funds representing the construction costs of the police establishments “in the event that future claim of ownership or right is presented by third parties, or a decree of disposition or when assailed in court by the donor themselves or their heirs”.

The COA recommended the PNP Headquarters to release sufficient funds for the “payment of donors, capital gains, transfer taxes and other fees so that issuance of titles would be facilitated”.

In the same report, the COA also called out the PNP over the unfinished constructions of municipal police stations (MPS) in several provinces that should have been completed by the end of 2016 as stated in the extended contracts.

The COA said that based on the PNP's Annual Procurement Plan (APP) for 2016 a total of P75,618,386.76 was allocated for the construction of 24 additional MPS nationwide.

The COA said field audit revealed that only 21 percent or five out of these 24 construction projects were 100 percent completed as of December 31, 2016. Four of the five projects, however, were completed beyond the target date of completion stated in the contracts, the COA said.

The audit body said the remaining 19 construction projects have expected completion dates within 2016 “thus, they were already overdue as of year-end.” The state auditors noted that one project “has not even started at all even if it was already awarded to the contractor.”

“The delay in the completion of the projects continues to deprive the intended policemen of decent and workable police stations. Also, the quality of the buildings may be compromised because of the too slow implementation of the projects,” the report read.

Lastly, the COA said majority of the PNP's offices and stations nationwide valued at P1,426,386,472.35 were not insured with the General Insurance Fund of the Government Service Insurance System (GSIS) in violation of Section 2 of Republic Act 656 or the Property Insurance Law of the Philippines.

The COA said that because of this, “any loss and/or damage of properties due to natural and man-made calamities could not be indemnified.”

“In recent years, the weather conditions in the Philippines have drastically changed. Typhoon and flood continue to increase and become more frequent while earthquake is a risk that the country also has to face,” the COA report read.

“To protect these buildings and structures from fire and allied perils, insurance must be secured from GSIS General Insurance Fund to cover loss or damage of government properties against catastrophic perils and guarantee immediate damage control, repair and replacement thereby reducing interruption of police operation,” it added.