397 city vehicles declared scrap

CEBU, Philippines —  Nearly 400 service vehicles owned by the Cebu City Government, ranging from units acquired in the late 1980s to heavy equipment worth millions of pesos, have been recommended for disposal after the Department of General Services (DGS) submitted its official inventory of unserviceable assets to the City Council.

The endorsement, signed by DGS Officer-in-Charge Atty. June Maratas and transmitted to the council earlier this month, came in response to a directive requiring a comprehensive accounting of government vehicles that are already considered beyond repair.

The submission complied with Resolution No. 17-3411A-2026, approved during the City Council’s April 21, 2026 session, which directed the DGS to provide photographs of the unserviceable vehicles together with their corresponding programs of work and cost estimates. The resolution emphasized transparency and accountability in the disposal process.

According to the inventory, a total of 397 vehicles have been classified as unserviceable.

The list includes units acquired over nearly three decades, from a 1989 Toyota Hilux to more recently purchased government vehicles. A significant concentration of the unusable fleet consists of vehicles procured during the last two decades, including 45 units from 2009, 34 from 2010, 37 from 2011, and 39 from 2012.

The inventory highlights the extent of Cebu City’s growing asset backlog, reflecting years of accumulated service units that have since deteriorated beyond practical repair.

The vehicles slated for disposal span a broad range of categories, including SUVs, vans, ambulances, fire trucks, pickups, minibuses, tourist buses, mobile patrol units, dump trucks, garbage compactors, transporters, and heavy equipment.

Among the listed vehicles are Kaohsiung and Yokoma tourist buses, as well as numerous units previously used for public safety, health, sanitation, and transportation services.

Many of the vehicles are reportedly stored at the city junkyard, while others have been left abandoned in various barangays across the city.

The inventory also includes several high-value assets. Among the most expensive are bulldozers valued between P4 million and P4.8 million, as well as a dredging machine worth P4.6 million, although acquisition dates for these units were not indicated in the report.

Other notable vehicles identified in the inventory include a 2012 Kia Sorento 4x4 SUV acquired for P2.095 million, a 2016 Mitsubishi Adventure GLX purchased for P1.025 million, a 1999 Suzuki Vitara valued at P700,000, and a 2010 Toyota Hi-Ace van acquired for P540,000.

Also listed were Hyundai factory-reconditioned ambulances and patrol transporters purchased between 2010 and 2012 at costs ranging from P485,000 to P690,000 each, a 2012 Foton view ambulance worth P999,000, a 2013 Foton MPX van valued at P1.3 million, and a 2002 Hino FS dump truck acquired for P1,011,909.

The inventory further includes heavy-duty buses and minibuses purchased between 2009 and 2010 with acquisition costs ranging from P878,000 to P1.59 million, as well as a 2015 Isuzu garbage compactor valued at P873,210.83.

Adding to concerns over asset management, the report notes that approximately 130 vehicles have no recorded acquisition dates, while several others lack purchase price information, making documentation and valuation more difficult.

Inspection reports classified all 397 vehicles as beyond economic repair, with a combined estimated scrap weight of 1,493,140 kilograms.

Based on prevailing junkshop prices surveyed in March 2026, scrap metal was valued at P8 to P13 per kilogram. Using the lowest rate of P8 per kilo for computation, the city estimated the fleet’s scrap value at P11.95 million.

However, a subsequent reappraisal conducted by the Cebu City disposal committee under COA-DBM joint circular no. 2024-1 placed the value at P10.75 million.

Under the circular, government properties that remain unsold after public auction may be disposed of through negotiated sale, provided they are reappraised and sold at no less than 90 percent of their reappraised value.

The reappraisal report was endorsed to the Commission on Audit Regional Office VII on March 23, 2026 for approval. The endorsement was signed by disposal committee chairperson Albert L. Tan, who also serves as city administrator, and was received by COA.

City officials said the process is intended to ensure compliance with government auditing regulations, prevent unauthorized disposal of public property, and maximize the recovery of value from assets that can no longer be utilized. — (FREEMAN)