CEBU, PHILIPPINES — Cebu City’s ability to deliver critical infrastructure and socio-economic programs has been hampered by chronic project delays, inadequate documentation, and weak inter-office coordination, leaving billions of pesos in development funds largely unspent, the Commission on Audit (COA) pointed out in its 2025 annual audit report.
State auditors found that the city absorbed only P344.4 million, or 7.98 percent, of the P4.316 billion available under the Local Development Fund, a level of utilization that the state auditors said was “not optimally contributing to societal and economic development goals.”
The low absorption rate was primarily attributed to the non-implementation of 41 priority projects worth P2.112 billion, including flood control systems, road concreting projects, and health facilities, which remained stalled due to project readiness issues and incomplete documentary requirements.
The audit also showed that 266 projects dating back to 2012 remained in various stages of implementation as of the end of 2025, with only 44 recording any progress.
Seventeen projects were still at the document compliance stage because they lacked approved design plans, Programs of Work and Estimates (POWE), and Project Procurement Management Plans (PPMP). These included the rehabilitation of the Cebu City Health Building and the construction of evacuation centers in Barangays San Jose and Kamagayan.
The Department of Engineering and Public Works (DEPW) attributed the delays to limited manpower and the demands of simultaneously handling projects funded under continuing appropriations.
Another 18 projects were returned to the City Planning and Development Office (CPDO) after it was discovered that their proposed sites were privately owned and had no deeds of donation. Five other projects involving land acquisition also stalled because the Land Management Office needed to be reactivated.
COA noted that despite repeated recommendations to approve only procurement-ready projects, the city continued to include proposals with incomplete documentation, resulting in recurring unutilized balances that have been carried over from one fiscal year to the next.
The audit likewise flagged questionable budget realignments.
It found that projects already awarded, completed, or under implementation were still declared as savings and realigned despite actual work accomplishments.
Among these was the drainage project in Sitio Redrads, Barangay San Nicolas, which was reported as 100 percent complete but remained unpaid after the contractor failed to submit billing documents. A subsequent inspection also found substandard work that required corrective measures.
A perimeter fence project at the Pasil Fish Market, already 70 percent complete, was likewise included in the list of projects whose funds were realigned.
According to COA, these lapses in project validation and reporting increase the risk of duplicated funding, misallocation of resources, and further delays in projects that have yet to begin.
The audit also questioned the accuracy of public project information.
A project billboard along A. Tormis Street in Barangay Sambag I indicated a July 2025 start date and a January 2026 completion date even though the project had already been suspended and showed no visible signs of construction.
COA said the discrepancy “raised doubt and concern on the reliability of project monitoring and reporting” and misled the public on the actual status of government projects.
To address the deficiencies, the commission reiterated earlier recommendations for stricter screening of projects before approval, ensuring that only procurement-ready proposals are funded. It also urged the city to adopt unified monitoring tools across offices, outsource the preparation of POWEs to augment DEPW’s limited manpower, strengthen validation procedures before declaring project savings, and ensure that project billboards accurately reflect actual implementation status.
In response, the CPDO said it would establish an inter-office coordination mechanism with the DEPW that includes centralized monitoring, standardized reporting, joint inspections, and an issue-tracking system.
The DEPW, for its part, committed to withholding payments until contractors correct identified deficiencies and to updating project billboards to accurately reflect the status of ongoing works.
However, COA emphasized that similar deficiencies had already been identified in previous audits, indicating that long-standing problems involving project readiness, validation, and coordination remain unresolved.
Mayor Nestor Archival, who assumed office on June 30, 2025, acknowledged the backlog of unimplemented Local Development Fund projects and vowed to accelerate their implementation.
He admitted that many projects inherited from previous administrations remain pending and said the city intends to complete these while simultaneously pursuing new initiatives.
Archival also said the city plans to hire additional engineers to strengthen the DEPW’s workforce and, if necessary, outsource the preparation of Programs of Work and Estimates to speed up implementation. He noted, however, that documentary and procurement requirements could still take three to four months to complete.
“Mag-open pa ta og slots. Kinahanglan gyud ta og mga engineers, ug mag-hire ta. We will be hiring,” he declared, underscoring his administration’s commitment to break the cycle of delays.
Despite these commitments, COA maintained that Cebu City’s challenges extend beyond manpower shortages to broader governance concerns.
The commission said the city’s persistently low fund absorption, recurring planning deficiencies, and unreliable project monitoring have weakened its capacity to deliver essential infrastructure and socio-economic services.
COA warned that unless these reforms are implemented consistently, Cebu City risks repeating the same cycle of delayed projects, underutilized public funds, and missed opportunities to address pressing concerns such as flooding, deteriorating roads, and inadequate health facilities.
| Written by Caecent No-ot Magsumbol and Preciosa Bacalso /FPL
