COA: DSWD center in Talisay overpriced

CEBU, Philippines - A Commission on Audit report describes the cost of the construction of the Department of Social Welfare and Development (DSWD) detention center at barangay Maghaway and the asphalting in barangay Pooc by the Talisay City government as excessive expenditures. 

“This is prejudicial to the interest of the government and in contrary to Section 3.3 of COA circular 85-55A,” the report read.

Under Section 3.3 of COA circular 85-55A, it states that, “the term excessive expenditure signifies unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price.” 

An audit observation report, as of June 30, 2013, said the contract price of P2.874 million for the construction exceeded COA’s estimate by P176,977 or 22.33 percent above the COA cost evaluation. 

Per contract review rendered by the Technical and Information technology Services, the COA discovered that the construction of the detention center, perimeter fence, entrance gate and guard house was found to be P125, 139.33 or 19.19-percent, which is above the COA cost evaluation.

“It is considered an excessive expenditure,” the report read.

The COA report was signed by State auditor Ma. Daisy Bercede and supervising auditor Delia Monte De Ramos. 

The COA’s inspection report on the asphalt overlay at Pooc also showed a deficiency of 3.14-percent with an equivalent amount of P51,838.54 since during the inspection and coring conducted, the actual asphalt quantity is lesser than the programmed quantity. 

The COA has instructed the city government to collect the amount of P176,977.87 representing the excessive contract costs of the projects from the construction firm. 

If there will be failure to collect the amount of the excessive contract costs, the amount will be disallowed in the audit. 

State auditors said the city government should require concerned officials to exercise prudence to come up with a reasonable contract cost. (FREEMAN)