COA reports

Coast guard has P2.56 billion in unfinished projects, delayed supplies – COA

Coast guard has P2.56 billion in unfinished projects, delayed supplies – COA
State auditors tell the Philippine Coast Guard to sue and blacklist the contractors involved

MANILA, Philippines – The Commission on Audit (COA) found the Philippine Coast Guard (PCG) to have had unfinished construction projects and undelivered supplies and equipment worth a combined P2.562 billion over several years. 

State auditors want the PCG to sue and blacklist the responsible contractors, whose delays have ranged from a few months to eight years, and to collect liquidated damages from them.   

The audit report on PCG for 2021, released recently, identified: 

  • 29 infrastructure projects worth P104.403 million – delayed by three to eight years
  • 39 projects, P463.116 million – two to three years
  • 19 projects, P510.178 million – one year to two years
  • 5 projects, P148.217 million – several months
  • 14 procurement contracts, P1.336 billion – defaulted by 38 days to almost two years

“The audit team is concerned that if the PCG management does not act with urgency in the completion/full implementation of the 92 infrastructure projects, it will result in loss and wastage of public funds,” the COA report said.

The biggest supply contract flagged by COA was worth P1.196 billion, involving 40 units of 11.5-meter-high speed response boat and a delivery date of January 2021. PCG has refused to give the supplier an extension for the delivery.  

PCG told auditors that their Maritime Safety Services Command had also recommended that cases be filed against the contractors, while their Contract Termination and Review Committee had recommended terminating 57 of the 92 unfinished projects, with a combined cost of P466.38 million. –

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