In Talisay City: P40 million market losses flagged

CEBU, Philippines — The Commission on Audit (COA) has flagged the continued operation of the Talisay City Public Market, which incurred nearly P40 million in accumulated losses over the past five years.

State auditors found that the city’s public market incurred annual losses ranging from P5.91 million to P9.01 million from 2021 to 2025. COA said operating at a loss was inconsistent with the market’s mandate to generate revenue as a local economic enterprise.

Based on the financial statements, the market posted a loss of P8.46 million in 2025, P5.91 million in 2024, P8.18 million in 2023, P7.84 million in 2022 and P9.01 million in 2021 or a whopping P39.4 million within the five-year period.

The market generated total revenues of P48.96 million against operating expenses of P88.36 million during the said period.

COA noted that a significant portion of the market’s 2025 expenses went to personnel costs. Of the 30 filled regular positions assigned to the market, only 13 were actually performing market-related functions, while the others were assigned to different city offices.

Although four personnel from other offices were also assigned to the market, COA said market operations still absorbed the costs of all 30 regular personnel, resulting in an estimated excess personnel cost of P3.46 million.

The market also had 50 approved job order (JO) positions, while the Human Resource Department reported that as many as 92 JOs were actually deployed to the market, subject to validation. Payroll records showed P4.47 million in JO wages in 2025.

COA said the manpower complement appeared excessive given the nature and size of the market and should be reassessed for possible work redundancy and inefficiency.

The audit team also questioned the market’s electricity expenses, which ranged from P1.9 million to nearly P2.5 million annually over the past five years.

Under the existing arrangement, tenants are responsible for electricity costs attributable to their stalls, while the city shoulders expenses for common lights and industrial fans. COA said the high electricity costs suggested possible gaps in the metering or monitoring of actual consumption.

The audit further found 64 vacant stalls out of the market’s 974 stalls, while 60 stalls had inactive tenants.

COA said the vacant and inactive stalls represented potential revenues that the city was unable to collect.

The City Treasurer’s Office reported P8.18 million in receivables from tenants, consisting of P5.65 million in regular accounts, P880,186.60 in compromise accounts and P1.65 million involving abandoned or unoccupied stalls.

The CTO attributed part of the unmet revenue target to actual stall occupancy. It said notices of award had been issued to prospective occupants, but many did not proceed with occupying the stalls.

The market supervisor also said the location of some stalls discouraged prospective occupants.

COA noted that there were no contract agreements between the city and the occupants, making collection more difficult.

The CTO said demand letters had already been sent to delinquent occupants based on the notices of award.

COA recommended that the city correct the attribution and charging of personnel services expenses and strengthen measures to attract tenants, including occupants of vacant and inactive stalls.

During the exit conference, the city government assured COA that it would review the hiring of JO personnel, reassess market operations, identify vacant stalls and validate the electricity expenses, which management also considered excessive.

COA acknowledged the commitments but stressed that sustained corrective measures were needed to address the market’s recurring deficits, particularly in personnel costs, manpower utilization, stall occupancy and collection efficiency. — /FPL (FREEMAN)