MANILA, Philippines — The Commission on Audit (COA) has flagged the Local Water Utilities Administration over deficiencies in the LWUA’s implementation of the P1.36-billion potable water supply project funded by the Department of Health (DOH) in 2010.
Based on the COA’s annual audit report, the project, which aimed to supply potable water to waterless municipalities, remains unfinished as end of last year even if the DOH had transferred the funds to the LWUA on Dec. 29, 2011.
The report showed that the uncompleted projects, with total allocation of P25 million were supposed to have been implemented in Jaro, Leyte; Claveria, Misamis Oriental; Tangub, Misamis Occidental; Jolo, Sulu, and Masbate.
The audit body said the LWUA has yet to return to DOH a total of P121.583 million representing unutilized fund of P23.306 million from 37 completed projects and P98.276 million from 14 canceled projects due to non-operational water districts that were included in the project listing.
State auditors said the LWUA’s failure to return the amount contravenes Circular No. 94-013 dated Dec. 13, 1994, which states that “the implementing agency should return to the source agency any unused amount upon completion of the project.”
“We advised the LWUA management to return the unutilized funds totaling P121.583 million to DOH or request for realignment to other projects if warranted,” the COA said.
The audit body said a majority of the water districts that are beneficiaries of the project have yet to submit their liquidation reports to the COA regional offices.
The COA directed the LWUA to “coordinate and require the concerned water districts to submit the final liquidation reports to the COA regional offices.”
In a reply letter, the LWUA admitted that 14 water districts have yet to submit liquidation reports on the completed projects while 20 submitted their liquidation reports. But the COA regional offices have yet to issue notices regarding the accuracy of the reports.