COA asks Ombudsman to look into Albay flood control project

MANILA, Philippines – The Commission on Audit asked the Office of Ombudsman to look into a P9.97-million flood control project in Ligao City, Albay.

In a 15-page decision dated July 28, state auditors upheld a 2022 ruling by the COA Region V on the notice of disallowance it had issued against the regional Department of Public Works and Highways’ (DPWH) payment, worth P5.77 million, to construction firm BDL Construction and Supply.

The notice of disallowance held liable BDL Construction and Supply, as well as then-DPWH regional director Danilo Dequito and chief engineer Efren Manalo.

In 2012, the DPWH regional office had awarded a contract worth P9.97 million to the company for the repair and reconstruction of a consolidation dam and a scoured riverbank at Pinit Foot Bridge in Ligao City, both of which were damaged by 2011’s Typhoon Bebeng (Aere).

In 2013, the COA Regional Technical Services Office conducted a site inspection and found that the consolidation dam had not been rebuilt, even after the contractor said it had finished the project. The COA regional office then disallowed P5.49 million — the budget assigned to the consolidation dam — plus miscellaneous expenses, totaling P5.77 million.

Manalo had appealed the notice of disallowance since a concrete revetment was built near where the original consolidation dam was supposed to be repaired and reconstructed. The agency had argued it would be unjust enrichment on the part of the government if the contractor was not paid for this replacement project.

The COA en banc, however, said using the consolidation dam project fund for the concrete revetment violated the provisions of Republic Act No. 9184 or the Government Procurement Reform Act, and the project’s funding source, the 2010 General Appropriations Act, and was “tantamount to disbursing government funds without a valid appropriation.”

State auditors said it could have also violated Article 220 of the Revised Penal Code, and that there could be basis to investigate for possible indictment for technical malversation. – Rappler.com