COA: P181 M worth of smoke emission equipment bought by DPWH road board unused

MANILA, Philippines - The Commission on Audit (COA) reported that P181-million worth of smoke emission testing equipment purchased by the Road Board of the Department of Public Works and Highways (DPWH) in 2008 and 2009 have never been used.

In its 2010 report, COA said that the government has been deprived of “the opportunity to earn much needed income from testing fees that could have been used for more productive activities to improve government service.”

State auditors said that except for the testing device installed at Land Transportation Office (LTO) in Region VII that is already operational, all Motor Vehicle Inspection Systems (MVIS) equipment procured in 2008 and 2009 valued at P181.06 million and distributed to regional offices were still not being used as of 2010.

COA said the MVIS was intended to provide a systematic, reliable, and effective emission testing of motor vehicles nationwide in accordance with the Land Transportation and Traffic Code of the Philippines and the Clean Air Act of 1999.

One of the requirements of the LTO for motor vehicle registration in the country is the smoke emission test.

The goal was to ensure that registered vehicles are safe and compliant with road safety rules as well as air pollution control standards.

The MVIS project also involves the establishment of a Motor Vehicle Inspection Center (MVIC) in LTO offices nationwide.

Records show that in May 2008, 11 sets of MVIS equipment were procured and paid for by the LTO Central Office, followed by six sets and another five sets in November 2009 for a total cost of P181,061,296.96.

The equipment, delivered to the different regional offices, were inspected and accepted by the end users and P31.952 million was set aside for installation.

COA said its evaluation of the implementation of the project in the regional offices revealed that five sets of MVIS were already installed in Regions III, IV-A, VII and NCR North MVIS and South MVIS with installation cost amounting to P10,707,557.58.

However, the one installed in Region VII was the only one operational while those installed in Region III and the National Capital Region (NCR) were not used due to interconnectivity issues.

The MVIS equipment in Region IV-A was already installed but could not be operated because officials there are still waiting for the release of funds to be used as advance payment to the Manila Electric Co. for the approval of its application for single metering.

COA said that in the case of LTO Regions I, X, and XII, the equipment were not yet installed because of the delayed construction of Phase II of the MVIS building allegedly due to budget constraints.

“We also gathered from the LTO Project Monitoring Committee that those delivered to Regions II and VI are likewise not yet installed,” state auditors reported.

“Our audit teams in the regions reported that the MVIS equipment not yet installed were exposed to bad elements and therefore unnecessarily subjected to deterioration and possible theft,” they added.

COA said the continued delay in the full implementation of the MVIS project and the non-utilization of the procured MVIC equipment deprived the government of much needed income that could be used to improve its services to the people.