CEBU, PHILIPPINES — The Commission on Audit (COA) has flagged more than P432 million worth of infrastructure projects in Cebu City after the city government failed to submit key technical documents needed to assess whether the projects complied with procurement rules and whether public funds were properly spent.
In its latest annual audit report, COA cited P432,995,270.64 worth of infrastructure projects for lapses in complying with audit requirements, warning that the deficiencies delayed technical evaluation and weakened accountability in the use of public funds.
State Auditors said they were unable to fully evaluate 47 infrastructure projects because the city failed to submit critical documents required under COA Circular No. 2009-001. The report did not identify the specific projects involved.
Among the missing documents were the Detailed Unit Price Analysis (DUPA), Bill of Quantities, Breakdown of Contract Costs, Variation Orders, Program Evaluation and Review Technique/Critical Path Method (PERT/CPM) network diagrams, and complete sets of approved plans and drawings.
Without these records, auditors said they could not determine whether contract costs were reasonable, project schedules were realistic, or procurement procedures had been properly observed.
To complete the technical evaluation, the audit team sought assistance from the Technical Audit Personnel of the COA Regional Office VII pursuant to COA Resolution No. 2020-014.
However, despite formal requests sent to the Department of Engineering and Public Works (DEPW) in August 2025 and again in March 2026, the required documents had not been submitted by the time the audit report was finalized.
COA stressed that the lapses went beyond procedural deficiencies, noting that the absence of supporting documents prevented auditors from promptly communicating findings to city officials and delayed corrective action.
The audit also highlighted what it described as a recurring concern in Cebu City’s infrastructure governance, with previous COA reports likewise citing deficiencies in documentation, contract management, and project monitoring.
In a letter dated April 7, 2026, the chairperson of the Bids and Awards Committee (BAC) for Infrastructure and Consulting Services acknowledged that the contracts covered by the audit had been processed under the previous BAC composition.
The BAC chairperson, however, committed to retrieving the missing documents for submission to COA.
While auditors acknowledged the commitment, they noted that the documents had yet to be submitted as of the completion of the audit.
COA recommended that the officer-in-charge of the City Engineer’s Office, in coordination with the BAC and its Secretariat, explain the lapses, submit the missing documents, and ensure strict compliance with COA Circular No. 2009-001 by furnishing all contracts and supporting documents within five working days after their execution.
The latest findings add to a series of audit observations involving Cebu City’s infrastructure projects in recent years. Previous COA reports have also cited delayed project implementation, questionable contract variations, and incomplete documentation, raising concerns over the city’s procurement and project management systems.
COA said the latest findings underscore the need to strengthen compliance and institutional reforms in the city’s procurement and engineering offices, stressing that the timely submission of technical documents is essential to ensuring transparency, accountability, and value for public funds.
Written by Caecent No-ot Magsumbol/FPL
