COA: Government lost P6.4 billion from defective DPWH projects in 2024

MANILA, Philippines — The government lost P6.4 billion last year due to defective infrastructure projects implemented by the Department of Public Works and Highways (DPWH), the latest report of the Commission on Audit (COA) showed.

In its 2024 annual audit report on the agency, the COA said 747 infrastructure projects implemented nationwide by various DPWH regional offices were found to be technically defective, unusable or were left idle due to the agency’s failure to ensure that the contractors were compliant with the terms of the contracts.

The COA said the defects and deficiencies noted by the audit team upon project inspections and validations were equivalent to at least P6.459 billion.

“Moreover, several deficiencies were noted in the implementation of various infrastructure projects, which resulted in the projects being unusable or idle, thus depriving the public of the benefits that can be derived therefrom,” it added.

The audit breakdown showed that DPWH Region 6 (Western Visayas) was responsible for the bulk of the defective or deficient projects equivalent to P3.458 billion.

Among the deficiencies noted in 130 projects, implemented specifically by DPWH Region 6’s District Engineering Offices (DEOs) in Bacolod City, Negros Occidental, Iloilo, Capiz and Antique were “longitudinal cracks, pavement defects and structural issues.”

Also flagged were 73 projects implemented by DPWH Region 10’s DEOs in Lanao del Norte and Misamis Oriental, with P1.564 billion worth of deficiencies.

The COA said that while the projects were reported as completed, they were found to be “deficient or unfinished within the contract duration.”

Meanwhile, 55 projects implemented by the DPWH Region 10’s DEOs in Cagayan de Oro City, Lanao del Norte, Misamis Oriental were found to have “negative variances” from contract agreements. The COA said there were also overstatements of contact cost, thereby “affecting the quality of the projects.” The COA estimated the total cost of defects and deficiencies at P769.338 million.

“Technical defects” worth P407.452 million were likewise noted by the audit team in 25 projects implemented by DPWH Region 10’s DEOs in Iligan City and Lanao del Norte.

Likewise called out was the DPWH Region 4-B for 153 projects implemented by its DEOs in Marinduque, Occidental Mindoro, Oriental Mindoro, Palawan and Southern Mindoro.

The COA said among the defects observed, equivalent to P84.605 million, were cracks, scaling, collapsed structure, damaged or overturned section of the slope protection, cost deficiency of various items, missing items, unaccomplished structures and “various items of works not in accordance with the standard specifications of the contract,” among others.

Other regional offices flagged for defective or deficient projects were DPWH Cordillera Administrative Region (CAR) concerning 31 projects with P54.662 million worth of defects or deficiencies; Region 2 for 183 projects (P52.356 million); Region 1 for three projects (P45.724 million); Region 13 for six projects (P13.072 million); Region 9 for nine projects (P4.75 million); Region 5 for 31 projects (P4.002 million) and Region 8 for 48 projects with “unquantified” worth of defects or deficiencies.

The COA recommended to DPWH to “require the contractors concerned to immediately repair, rectify or correct the noted defects and deficiencies and deliver the required items of works necessary in the implementation of infrastructure projects to conform with the terms and specifications provided for in the contracts.”

Meanwhile, in the same audit report, the COA also flagged the DPWH for inaccurate reporting of the status of the infrastructure projects.

‘Over P180 billion  lost since 2016’

According to Senate President Pro Tempore Panfilo Lacson, more than P180 billion has been lost to ghost flood control projects since 2016, not counting substandard public works.

In an interview with radio dzBB yesterday, Lacson said he and Senate finance committee chair Sherwin Gatchalian came up with the estimate based on the 600 non-existent projects out of the 10,000 flood control works inspected.

“We are looking at 30,000 flood control projects since 2016. If we extrapolate based on earlier findings that more than 600 out of 10,000 projects were ghost, Sen. Gatchalian and I estimated that six percent or higher of 30,000 projects could mean P180 billion or higher went to ghost projects,” Lacson said. - Marc Jayson Cayabyab