SUMMARY
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The Commission on Audit called on the Philippine Health Insurance Corporation (PhilHealth) to hasten the construction of its building in Quezon City after already spending P1.602 billion for rental fees from 2009 to 2020.
State auditors urged PhilHealth to work on its new headquarters 17 years after it purchased the 1.72 hectare lot located along East Avenue from the Bangko Sentral ng Pilipinas.
“This sizeable amount could have been utilized to fund other important projects had the construction of PhilHealth’s own building materialized,” COA said.
It is projected that the agency will have to spend P1.874 billion in rental fees – with P100 million alone for its headquarters – from 2021 to 2025.
The Quezon City lot was acquired by PhilHealth for P439.38 million in April 2003, but the construction of what should’ve been the PhilHealth Corporate Center (PPC) was delayed by issues, including contractor disputes, right-of-way, and budget.
In 2011, the Physical Resource and Infrastructure Department told the PhilHealth officials asked to double the to P2.67 billion for the construction of the PPC.
The original allocation of P1.2 billion, it said, was “no longer realistic” given the increase labor and material expenses.
COA also said that the mode of procurement could not be finalized because of the recurring changes of leadership.
In 2015, PhilHealth sought help from the Department of Public Works and Highways (DPWH) for the project completion, but nothing came out of the discussions. – Rappler.com
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