Summary of Significant Audit Findings

No. Audit Findings

1. A total of one hundred eighty-eight (188) infrastructure projects of the Regional Office
and the Cavite 1st and 2nd District Engineering Offices (DEOs) with a total contract cost
of ₱10,285,809,080.86 were not completed within contract time due to Road Right of
Way (RROW) issues between establishments, commercial buildings, lot owners and
informal settlers, obstruction of trees, delayed removal of utilities such as MERALCO,
NAWASA line, PLDT, FLECO and GLOBE posts, delay in the issuance of clearances
and cutting permits, and intermittent weather condition, thus immediate benefits to the
project beneficiaries and the public was not realized and fully maximized.
2. The Laguna 1st and 2nd DEOs and Quezon 2nd DEO did not impose liquidated damages of
at least ₱287,841,083.76 nor forfeit the performance bond in favor of the government on
20 infrastructure contracts costing ₱572,406,724.65 that incurred delays without valid
cause, contrary to Item 8, Annex “E” of the Revised Implementing Rules and Regulation
(RIRR) of Republic Act (RA) No. 9184, which gives undue advantage to contractors, it
puts the government in a disadvantageous position and deprives the public of the benefits
that could have been derived from the immediate and maximum use of the subject project.

3. Contract reviewed on 23 infrastructure projects of the Laguna 1st and 2nd DEO disclosed
the inclusion of rental of service vehicle for the Engineer with an aggregate cost of
₱9,008,155.70 without the approval from the Secretary of Department of Budget and
Management (DBM), contrary to item 3.3 of Department of Budget and Management
(DBM) National Budget Circular (NBC) No. 446, series of 1995 and item 11.2 of
Department of Public Works and Highways (DPWH) Department Order No. 36 dated
March 12, 2004, thus, contract amount was excessive by the same amount