COA flags P28.26M unserviceable properties in Daanbantayan

CEBU, Philippines — The Commission on Audit (COA) has flagged 479 unserviceable properties of the Municipality of Daanbantayan, Cebu, with an aggregate value of ?28.26 million that remained undisposed as of Dec. 31, 2025.

In its 2025 Annual Audit Report, COA said the unserviceable properties, valued at ?28,263,626.69, had not yet undergone disposal, exposing them to further deterioration and depriving the municipality of potential income from their sale.

COA said the continued retention of the properties was contrary to Section 379 of Republic Act No. 7160, or the Local Government Code, and COA-DBM Joint Circular No. 2024-1 dated Jan. 30, 2024.

The audit noted that 17 of the 479 properties had no recorded value.

Based on the Unserviceable Property Report submitted by the municipal management, the properties included information such as acquisition dates, descriptions, property numbers, quantities, unit costs, total costs, and the offices to which they were assigned.

However, the report did not contain information on depreciation, impairment losses, carrying amounts, or details of any disposal or sales transactions, if applicable.

COA also noted that an Inventory/Disposal Committee had not yet been created, according to the General Services Office designate, due to the transition to the new administration.

During its inspection, COA observed some unserviceable motor vehicles scattered within the motor pool area and exposed to sunlight, rainwater, and other environmental elements.

The state auditors said such exposure could accelerate corrosion and further reduce the properties’ potential resale value.

COA also pointed out that the prolonged retention of the properties occupied storage areas that could otherwise be used for other municipal operational purposes.

The audit team said prompt disposal could prevent further deterioration and potentially generate additional income for the municipality through sale proceeds, allow the recovery of salvageable materials, and free up storage space.

COA recommended that the municipality create an inventory committee to conduct the inventory, inspection and evaluation of the unserviceable properties.

It also recommended that the municipality, in coordination with the GSO, commence disposal proceedings for all unserviceable properties in compliance with Section 379 of RA 7160 and other applicable rules and regulations.

Pending disposal, the municipality was also advised to implement temporary protective measures to prevent further deterioration and possible loss of value of the properties.

Management agreed to the recommendations and was urged to facilitate the disposal of the unserviceable properties within 2026. — (FREEMAN)