COA to Digos City LGU: Penalize contractor for project delays

MANILA, Philippines – The Commission on Audit (COA) urged the local government of Digos City, Davao del Sur, to impose penalties against a contractor over delays in the construction of a P12.26-million public market building.

In its 2019 audit report, COA recommended seeking liquidated damages amounting to P476,855 after Kriz Karlo Construction moved the target completion date 5 times.

The project was awarded on February 9, 2018, and was supposed to be completed within 180 days or until August 18, 2018. 

But the contractor requested extensions, citing lack of skilled workers, materials, and weather changes, among others.  

According to COA, the local government unit (LGU) failed to protect the interest of the city, as stated under Republic Act No. 9184 or the Government Procurement Reform Act, by granting 5 extensions.

State auditors also took note of the building’s current state, as contractors only finished the first phase of the project. Plumbing, electricity, and other necessary features have yet to be installed.

The LGU, meanwhile, said the liquidated damages may be deducted from the remaining collectible of the contractor from the city.

Problems over landfill 

State auditors also raised questions over an unfinished P30-million landfill project, which was supposed to have been completed by September 2019.

The contract, according to the report, was terminated after the contractor failed to comply with the timetable.

Because of the lack of a landfill, the existing dumpsite continues to operate, even if it is in violation of Republic Act No. 9003 or the Ecological Solid Waste Management Act.

“Aside from violating the law…the controlled dumpsite poses inevitable serious impacts on the environment while exposing the constituents to health risks,” COA said.

The LGU said it already approved a rehabilitation plan for the dumpsite, which will cost another P9.86 million. – Rappler.com