COA affirms cost-padding charge vs DPWH-Laguna engineers
THE Commission on Audit (COA) has affirmed with finality its January 16, 2020 decision sustaining the finding of cost-padding against the Department of Public Works and Highways (DPWH) – Laguna First District Engineering Office (LFDEO) regarding three infrastructure projects awarded to private contractors in 2011 and 2012.
COA chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana denied the motion for reconsideration filed by DPWH-LFDEO Planning and Design Section chief Loreta Sotomayor that sought reversal of the 2020 ruling.
Auditors found excessive payments to contractors of the P45.08 million concreting/widening of the Calamba-Sta. Cruz-Famy Junction into four lanes; the P35.31 million rehabilitation and upgrading of the national arterial road along the Rizal Boundary-Famy-Quezon Road; and the P24.8 million rehabilitation/reconstruction/upgrading of the damaged portions of the national secondary roads along Paete-Famy Poblacion Road, Lumban-Caliraya Road, and Cavinti-Caliraya Road.
The audit team said the cost-padding happened by overstating the number of days covered by the utilization of equipment used, higher prices of ready-mix concrete and thermos plastic materials compared to the program of work of other DPWH-LFDEO projects during the year, and listing longer labor times than what was actually rendered.
“The amount paid by DPWH-LFDEO for the infrastructure projects was excessive, being above the COA Allowable Estimated Cost. Wherefore, the Motion for Reconsideration… is hereby denied,” the COA en Banc declared.
Based on two Notices of Disallowance issued by auditors, the excess payments to the contractors were P8.85 million for the first project, P8.83 million for the second one, and P2.46 million for the third one.
The Commission pointed out that the COA Technical and information Technology Services evaluated the plans, specifications, programs of work, and detailed estimates submitted by the DPWH-LFDEO.
In addition, it also conducted onsite technical inspection of the three projects which led to the issuance of the Audit Observation Memorandum No. 12-009 on May 15, 2012 calling attention to the excess payments.
