State auditors raised concerns about alleged irregularities in the city government’s use of funds in the implementation of a P50-million project funded by the Department of Public Works and Highways (DPWH).
BAGUIO, Philippines – State auditors raised concerns about alleged irregularities in the city government’s use of funds in the implementation of a P50-million project funded by the Department of Public Works and Highways ., the Commission on Audit stated the city hall used funds originally designated for a multipurpose building in the Athletic Bowl for the ongoing construction of the Youth Convergence Center and Sports Complex.
One of the two contracts between the city government and the project contractor, M.E. Sicat Construction, also caught the attention of state auditors. The auditors also revealed that the 50.36% project accomplishment for which city hall made a payment after the first progress billing for the DPWH project was “actually the 6.7 percent project accomplishment” of the entire Youth Convergence Center and Sports Complex.
COA concluded that the initial amount downloaded by DPWH to the city, amounting to P25 million, “was disbursed to the Contractor of a City Government Project as a loan.”In a video released by the Baguio City Public Information Office on Tuesday, July 18, city administrator Bonifacio Dela Peña maintained that the local government used the DPWH fund for its intended purpose.
“We needed P391 million to complete it, and so we requested funding from the congressman… but the DPWH project title for the P50 million was different,” Dela Peña said. He further explained that city hall clustered the project for the bidding process since “it was one and the same.”
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