DILG flagged over P1-B unliquidated Yolanda funds

MANILA, Philippines — The Commission on Audit (COA) has called out the Department of the Interior and Local Government (DILG) for its lax monitoring of rehabilitation projects for the areas devastated by Super Typhoon Yolanda in 2013, noting that P1.059 billion of the funds that it transferred to implementing agencies remain unliquidated.

“The leniency of the DILG in monitoring the submission of liquidation report of Yolanda funds by the Department of Public Works and Highways (DPWH) and the local government units (LGUs) resulted in unliquidated balance of P219,639,992.56 and P839,877,773.75, respectively,” the COA noted in its 2018 audit report on the DILG. 

The funds transferred by the DILG to DPWH and LGUs were for reconstruction and repair of public establishments damaged by Yolanda, including provincial, city and municipal buildings, public markets, civic centers and barangay facilities.

The projects were under the Recovery Assistance on Yolanda (RAY) program launched in 2014 during the administration of former president Benigno Aquino III’s “Build Back Better,” which aimed at constructing disaster-resilient public infrastructure.

The audit body noted that of a total of P853.815 million that the DILG transferred to DPWH on Dec. 27, 2013 and June 2, 2014 for the implementation of Batch 1 and Batch 2 of the RAY program, only 74 percent or P634.175 million was liquidated, leaving a balance of P219.639 million.

The COA said this was even if the DPWH reported that a majority of the projects was already completed. 

The breakdown provided in the report showed that for Batch 1 of the RAY program, the DPWH had completed 12 out of its 13 construction projects, including nine municipal halls in Region 8 (Eastern Visayas), two civic centers in Region 7 (Central Visayas) and one public market in Region 6 (Western Visayas).

As for Batch 2 of RAY, the DPWH completed 11 out of its 12 construction projects, which included two municipal halls, three public markets and six civic centers in Region 8.

As for the RAY projects implemented by the LGUs, COA said a total of P839.877 million has yet to be liquidated, even if Batch 1 of the construction projects was 100 percent completed while Batch 2 was 98 percent completed.

COA said a total of 4,815 construction projects were to be implemented by various LGUs in Region 4-B (Mimaropa), Region 5 (Bicol) and Regions 6, 7 and 8 under RAY Batches 1, 2, 3 and 3-A.

COA said for Batch 1 the LGUs have yet to account for P73.864 million while for Batch 2, funds totaling P172.242 million have yet to be accounted for.

As for Batch 3, which has a reported completion rate of 84 percent, COA said funds totaling P339.527 million have yet to be liquidated, while for Batch 3-A, which has a completion rate of 31 percent, funds totaling P254.243 million have yet to be liquidated.

“The non-submission of liquidation reports by the LGUs and the DPWH can be attributed to the leniency of the (DILG) to monitor the status of projects/program implementation at the regional level, which is contrary to the pertinent provisions in the Memoranda of Agreement and COA Circular No. 94-013 dated Dec. 13, 1994,” the audit body said.

COA Circular No. 94-013 mandates an implementing agency to return to the source agency any unused balance upon completion of the project.

In its reply, incorporated in the audit report, the DILG said it continues to remind the LGUs to submit monthly reports for the physical and financial status of the projects.