The Commission on Audit (COA) has flaged the Metropolitan Manila Development Authority (MMDA) for delaying the completion of 33 projects worth P825.382 million that are intended to mitigate the city's recurring floods.
In its 2022 annual audit report, COA reported that the MMDA that 29.79 percent only, or 14 projects under the Metro Manila Flood Management Project Phase 1 (MMFMPP1) planned to be executed from 2018 to 2022, had been finished as of Dec. 31, 2022, with 33 still outstanding.
It was also reported that only four of the 33 pending projects are now underway, while the remaining 29 have yet to begin or are still "under consideration" as of the end of 2022.
Based on the data from COA, five of the outstanding flood control projects involve infrastructure, 19 require the procurement of products and other services, and nine involve consultation services.
The audit body attributed the project delays to suppliers' requests for delivery extensions; changes in procurement specifications; delays in procurement activities; revision of contract cost or contract duration; non-compliance of consultants with documentary requirements; and relocation of site or project re-design.
Further examination of MMFMPP1 indicated that procurements "cannot be effectively conducted because there is no breakdown of projects or procurements that will tie up to the total allocation per GAA (General Appropriations Act)," according to COA.
Worse, the audit board stated that as a result of the projects' delayed completion, the government had already incurred P27.426 million in commitment costs related to the loan component of MMFMPP1.
In exchange for the agreement to give the loan at a later date, a bank or lender charges a commitment fee.
It compensates the lender for laying aside the loan amount rather than using it for other purposes to earn interest.
The COA advised MMDA to use loan resources more efficiently and expedite project implementation by implementing "efficient and remedial measures.
It further stated that the MMDA must "immediately address all perceived project procurement and implementation issues and hindrances in order to avoid non-accomplishment of the planned activities.
According to the audit committee, the MMDA must also direct its PMO to closely monitor the status and development of the projects, as well as ensure that the techniques used are responsive, in order to expedite project implementation and completion.
In response, the MMDA informed the audit panel that it has already developed "strategies" to improve the pace of project implementation beginning in 2023 and continuing in subsequent years.
The MMDA stated that it is certain that it will be able to "maximize loan drawdowns and fast-track deliveries of procured services, goods, machinery, and equipment" in collaboration with the Department of Public Works and Highways.
