10.7 It is worth mentioning that the deficiency noted during the inspection was
incorporated into the final billing and has already been paid. As a result, the
Municipality incurred an overpayment amounting to ₱84,575.18.
10.8 The foregoing impairs the reliability of the completion reports submitted by the
implementing office and raises concerns about the effectiveness of project monitoring
and validation prior to payment. It also reflects lapses in internal controls, particularly
in the verification and inspection processes, which may expose public funds to the
risk of loss or misuse.
10.9 We recommended and the Municipal Mayor and the Municipal Engineer agreed
to inform the contractor of the deficiencies noted and require them to either
perform the needed remedy works or refund the amount corresponding to the
deficiency noted, totaling ₱84,575.18.
10.10 The Municipal Engineer explained that the observed longitudinal cracks were
evaluated and determined not to be critical, as they are unlikely to cause major
structural damage to the road, especially if addressed with appropriate engineering
interventions.
10.11 He also explained that more than a year had passed between the project's completion
and the technical inspection, which may have slightly affected the structural integrity
of the pavement compared to its original strength, given that the road is heavily used
by sugarcane-hauling trucks and subjected to constant, substantial load stress.
Nevertheless, they are willing to contact the concerned contractors for any necessary
immediate action.
Fabrication of Rescue Boat
11. The fabrication of a rescue boat costing ₱1,592,703.00 and funded through the
LDRRMF was awarded to a contractor whose license and business scope is limited
to building construction, contrary to the requirements of the 2016 Revised IRR of
R.A. No. 9184, thereby casting doubt on the contractor’s eligibility and
Management’s compliance with procurement laws.
11.1 Section 23.1.vi of the 2016 Revised IRR of Republic Act (R.A.) No. 9184 states that,
“In the case of procurement of Infrastructure Projects, a valid Philippine
Contractors Accreditation Board (PCAB) License, or Special PCAB License in
case of Joint Ventures, and registration for the type and cost of the contract to be
bid. (Emphasis ours.)
11.2 In CY 2024, the Municipality procured the Fabrication of Rescue Boat with a total
cost of ₱1,592,703.00, charged against the LDRRMF. Our review of the contractor’s
credentials revealed a potential mismatch between the nature of the project and the
contractor’s licensing and registration.
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