FARM TO MARKET ROAD FOR THE PROVINCE OF PALAWAN · 2017. 9. 28. · 1.3.2. Araceli, Palawan Araceli...

Republic of the Philippines COMMISSION ON AUDIT

Commonwealth Avenue, Quezon City

FARM TO MARKET ROAD FOR THE PROVINCE OF PALAWAN

A CITIZEN PARTICIPATORY AUDIT REPORT

Republic of the Philippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City Concreting of Barangay Kamuning Farm to Market Road Phase II of Puerto Princesa City A Citizen Participatory Audit Report April 2015

TABLE OF CONTENTS ACRONYMS ……………………………………………………………………………………………………i 1.0 BACKGROUND ………………………….……………………………………………………………1 2.0 AUDIT FOCUS ……………………..………………………………………………………..…..5 3.0 AUDIT OBJECTIVES ……………………….…………………………………………………..…...18 4.0 AUDIT CRITERIA …………………………………………………….……………………...…19 5.0 AUDIT METHODOLOGY ……………………………...……………………………………...21 6.0 AUDIT PERIOD ………………..…..………………………………………………….…...…23 7.0 AUDIT RESULTS ………..…………..………………………………………………………....23 8.0 AUDIT CONCLUSION ……………….………………………………………….…………..89 9.0 RECOMMENDATIONS FOR EXECUTIVE ACTION ……………...…………..……...91 10.0 AUDITEE’S COMMENTS …………………..………………………………………………...96 11.0 AUDIT TEAM’S EVALUATION AND REJOINDER ………………..……………………..100

APPENDIX 1: TECHNICAL AUDIT REPORT ……………………….……...……...……..21

APPENDIX 2: ACKNOWLEDGMENTS ……………………………..…………………...199

APPENDIX 3: AUDIT TEAM COMPOSITION ……………………………..…………………...200

APPENDIX 4: RESULTS OF INTERVIEW ……………………………..…………………...204

APPENDIX 5: COMPUTATION OF LIQUIDATED DAMAGES …………..…………………...207

APPENDIX 6: SCHEDULE OF FUEL, OIL AND LUBRICANTS …………..…………………...208

GLOSSARY ……………….……………………….……………………….…………..………………..209

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ACRONYMS

ABC Approved Budget for the Contract

ANSA-AEP Affiliated Network for Social Accountability in East Asia and the Pacific

AUSAID Australian Agency for International Development

COA Commission on Audit

CPA Citizen Participatory Audit

CSO Civil Society Organizations

FMR Farm to Market Road

GPPB Government Procurement Policy Board

IRR Implementing Rules and Regulations

LGU Local Government Unit

NGO Non-Government Organization

PCCP Portland Cement Concrete Pavement

P.D. Presidential Decree

R.A. Republic Act

RCPC Reinforced Concrete Pipe Culvert

R-IRR Revised Implementing Rules and Regulations

UNESCO United Nations Educational, Scientific and Cultural Organization

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1.1. Province of Palawan

Palawan’s economy is basically agricultural. The three major crops are palay, corn and coconut. Mineral resources include nickel, copper, manganese and chromite. The province has one of the richest fishing grounds in the country. About 45% of Manila’s fish supply comes from here. It is also the only oil-producing province in the country. Pearl diving used to be a significant economic activity for Palawan. The Province of Palawan is subdivided into twenty-three (23) municipalities, one (1) highly urbanized city and four hundred thirty-three (433) barangays.

1.2. Puerto Princesa City, Palawan

The City of Puerto Princesa is located 306 nautical miles southwest of Manila,

205 nautical miles from Panay and about 250 nautical miles from Zamboanga. It is

bounded on the north by the Municipality of San Vicente and Roxas, Palawan and on

the south by Municipality of Aborlan. A chain of mountains runs through the entire

length of the city, dividing it into two distinct areas-the East and West Coast. The

eastern side, which faces the Sulu Sea, is bordered by swamplands, following a series

of flat plains to hilly terrain. The West Coast has fewer plains with mountain ranges

close to the West Philippine Sea, thus giving the city a unique yet fragile ecology. It is

strategically situated in the center portion of the island province of Palawan.

A significant portion of the city retains its indigenous vegetation, rainforest,

mangroves, and coastal ecosystem, all of which support an array of wildlife. In terms

of species biodiversity and its wide range of ecosystems, Puerto Princesa is of national

and international significance. The famous Puerto Princesa Subterranean River

National Park (formerly known as Saint Paul’s Subterranean River National Park)

covering a protected area of 22,202 hectares is haven to endemic flora and fauna. The

United Nations Educational, Scientific and Cultural Organization (UNESCO) have

designated the park as a World Heritage Site on December 4, 1999.

The City’s economy largely depends on agriculture, fisheries, trade and commerce and tourism. Guided by its vision and in collaboration with the different sectors of society, the City Government of Puerto Princesa is committed to pursue inclusive sustainable development with agriculture and tourism as the primary engines of economic growth and development.

1.3. Municipalities of the Province of Palawan

1.3.1. El Nido, Palawan

El Nido is a first class municipality located in the northernmost tip of

mainland Palawan, about six (6) hours land travel or 238 kilometers from Puerto

1.0 BACKGROUND

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Princesa City, Palawan’s capital. It covers a total land area of 465.1 square

kilometers and is politically subdivided into eighteen (18) barangays.

1.3.2. Araceli, Palawan

Araceli is a fourth class island municipality located in the northern part of

the Province of Palawan. It covers a total land area of 17,680 hectares and

occupies 1.19% of province’s total land area. It is politically subdivided into

thirteen (13) barangays.

1.3.3. Taytay, Palawan

The Municipality of Taytay, a 1st class municipality,is situated on the western

portion of the Philippines and is one of the northern towns of the Province of Palawan.

It is bounded on the north by the Municipality of El Nido, on the south by the

Municipalities of Roxas and Dumaran and on the southwest by the Municipality of San

Vicente.

As a thriving municipality, one of Taytay’s primary objectives in terms of economic

development is an increase of twenty percent (20%) in the income of its farmers and

fisher folks. The Municipality envisions that by the end of 2016, one hundred (100)

kilometers of Farm to Market Roads (FMRs) have been rehabilitated and maintained.

1.3.4. Roxas, Palawan

Roxas is a first class municipality geographically located 147 kilometers

north of Puerto Princesa City. It covers a total land area of 117,347 hectares and

is politically subdivided into thirty-one (31) barangays. Recent estimates indicate

that around 70 to 80 percent of the total households are engaged in farming

activities. Most of the arable land is being devoted in the production of vital

crops such as palay, corn and vegetables either for domestic consumption or for

trade to municipalities in the province. Other agricultural products include

permanent fruit crops such as coconut, cashew, mangoes, citrus and coffee.

1.3.5. Sofronio Española, Palawan

The Municipality of Sofronio Española is a first class municipality of the Province of Palawan, it is composed of nine (9) barangays and has a total land area of 47,391 hectares. The municipality has a total agricultural area of 11,367 hectares or 23.99% of the total land area, of which 7,292.865 hectares or 64.16% has been cultivated. The widest cultivated land is located in Barangay Panitian constituting 21% of the total agricultural land of the municipality. The major crops grown in the municipality are rice, coconut and corn.

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1.3.6. Brooke’s Point, Palawan

The Municipality of Brooke’s Point is situated in the south-eastern section

of Palawan Island, approximately 215 kilometres (134 mi) from Puerto Princesa

City. It has a total land area of 85,064.90 hectares (210,199.9 acres) stretching

about 20 kilometres (12 mi) along the length of Palawan. Brooke's Point is one

of Palawan's main economic centers outside Puerto Princesa, along with Narra,

Coron and Cuyo.

The Municipality's economy is primarily based on agriculture. It produces

great quantity of rice, copra and corn. And many fruits and vegetables grow in

abundance in the area. The Municipality also caters to the palm oil industry

which is headquartered in Brgy. Mainit in the south. Unlike most of Palawans'

municipalities, Brooke's Point does not have white and pristine beaches that

draws local and foreign tourist. But because of the abundant freshwater

resources, the Municipality is one of the most productive in the province in

terms of agriculture.

1.3.7. Bataraza, Palawan

The Municipality of Bataraza is located on the southernmost part

of Palawan Island, with a total land area of 72,622 hectares and approximately

225 kilometres (140 mi) from Puerto Princesa City or about five to six hours

travel by land. The main industries of Bataraza include farming, fishing, and

nickel mining and processing.

The agriculture and fishery industry contributes to the economy of the

Municipality. But the existing roads linking the agriculture and fisheries

production sites and post-harvest facilities to the market and arterial roads and

highways are still the concern of the Municipality particularly those which are

located in remote areas.

1.4. Farm to Market Road

Farm to Market Roads (FMRs) play a significant role in the livelihood and food

security of farmers and the entire country's rural economy. FMRs improve the mobility

of people, goods, and services. They provide access to employment opportunities and

basic social services such as schools and health centers.

https://en.wikipedia.org/wiki/Palawan_Island

https://en.wikipedia.org/wiki/Puerto_Princesa

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FMRs are the foundation of modern agriculture. FMRs provide market access to

farmers, which can then motivate the latter to plant more, ultimately increasing their

production and income. FMRs serve as catalysts in improving rural economy.

FMRs can increase local trade and productivity, reduce transportation costs of

farm input and output, and minimize post-harvest losses. They connect farms and

coastal areas to main roads, hence promoting agro-tourism.

Rural transport not only concerns the movement of farm produce, but also helps

in household tasks such as procuring food, water, and fuel wood. When deliveries are

delayed, the quality of crops drop, as well as their prices and sales – impacting the

income of farmers and the food security of their families.

Some farmers would just let their products rot than spend for transportation. This

impacts both producers and consumers.

Rural roads are also necessary for communication. In their absence, people

become isolated, less participative in information exchange, and more vulnerable to

deceptive market deals.

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For audits which adopt the “Citizen Participatory Audit” (CPA) approach, the

Commission on Audit selects projects/services of the government that are close to the heart of the people, since the audit is conducted with direct involvement of citizens.

The focus of the Citizen Participatory Audit was the Farm to Market Roads that

are locally funded by the Local Government Units of the Province of Palawan.

2.0 AUDIT FOCUS

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2.1. Concreting of Kamuning Road Phase II, Barangay Kamuning, Puerto Princesa

City, Palawan

The Barangay Kamuning Farm to Market road is 40 kilometers away from the City Proper and the last barangay at the southern portion of Puerto Princesa City. It is bounded on the north by the Sulu Sea, on the east by Barangay Inagawan, on the west by Barangay Isaub, Aborlan and on the south by Barangay Inagawan-Sub. Most of the areas are flat terrain suitable for rice, corn and coconut plantation.

Thus, the City Government recognized the need to improve the welfare of

its constituents by providing for the concreting of the farm to market roads that will help in the easy transport of their crops and products.

The Annual Investment Plan of the year 2012, the City Government started

the Kamuning Farm to Market Road Phase I through Appropriations Ordinance No. 430-2011 amounting to ₱11,908,803.06, which covered 1.28 kilometers in length representing the starting station of the project up to halfway of the total distance from the national highway. In General Appropriation Ordinance No. 1-2013 for 2014 Annual General Fund Budget of twenty percent development fund, another appropriation amounting to ₱7,895,000.00 was provided for the completion of the Kamuning Farm to Market Road Phase 2 of the same road which covered 739 meters in length, 5.0 meter width and 0.20 meter thick, reaching the national highway.

The Phase II of the FMR project was awarded to the contractor E.V. Villaos

Trading & Construction with contract cost amounting to ₱7,800,438.81. The contract time was 90 days effective March 16, 2014 and ending on June 14, 2014.

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GROUND TRUTHING

Island: Luzon Province: Palawan City: Puerto Princesa

Barangay: Kamuning Contract Amount: ₱ 7,800,438.81

Geographic Coordinates (Starting Point)

Latitude : 9°31'44.11"N

Longitude : 118°37'19.71"E

Length: 739 meters

Source of Fund: 20% Development Fund for CY 2014

Travel Description and Landmarks:

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2.2. Concreting of Inogbong Road, Bataraza, Palawan

The “Concreting of Ingobong Seashore Road, Bataraza, Palawan” is an

infrastructure project with an Approved Budget for the Contract (ABC) of

₱4,823,152.88 implemented by contract and funded under the 20%

Development Fund on CY 2013. The project was awarded to E.C. Timbancaya

Enterprise for its bid amount of ₱4,817,585.00. Although not specifically

identified as Farm-to-Market Road (FMR) in the Annual Investment Plan, the

project was determined and reported by the Municipal Engineer as FMR project.

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Bataraza

Barangay: Inogbong Contract Amount: ₱ 4,817,585.00


Latitude : 8°41'13.26"N

Longitude : 117°39'7.02"E

Length: 400 meters



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2.3. Rehabilitation of Malatgao-Culandanum-Panas-Linao Road, Bataraza, Palawan

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Bataraza

Barangays: Malatgao, Culandanum, Panas,

Linao

Contract Amount:

₱9,897,661.97


Latitude : 8°37'44.36"N


Length: 10.5 kilometers



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2.4. Graveling of Loblob - Calitang Road in Bgy. Bucana, El Nido, Palawan

This is a project funded from the 20% Development Fund of calendar year

2013 implemented “by administration”. Loblob-Calitang Road is a 4 kilometer

access road to Sitio Loblob of Barangay Pasadeña and Sitio Calitang of Barangay

Bucana from the national road. Sitio Loblob is an hour ride from the town

proper. Agricultural products in this area consist of rice, cashew, coconut and

mango.

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: El Nido

Barangay: Pasadeña and Bucana Project Cost: ₱170,479.82


Latitude : 11°17'47.75"N

Longitude : 119°25'40.25"E

Length: 4 kilometers



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2.5. Construction/Rehabilitation and Maintenance of Local Roads, Barangay

Poblacion to Mauringen, Araceli, Palawan

This project was funded out of the 20% Development Fund of calendar year

2014 implemented “by administration”. The project covers the 33 kilometer

main road of the island from the town proper of Barangay Poblacion up to Sitio

Baing of Barangay Mauringen. Agricultural products in this area include rice,

cashew, coconut and vegetables.

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Araceli

Barangay: Mauringen Project Cost: ₱898,539.56


Latitude : 10°33'2.25"N

Longitude : 119°59'10.87"E




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2.6. Construction of Nalbot-Old Guinlo Road Phase I and II, Bgy. Poblacion – Old

Guinlo, Taytay, Palawan

The FMR Sitio Nalbot to Barangay Old Guinlo Project was started in the

year 2010. It is the opening or piloting of roads from Palawan North Highway So.

Nalbot to Barangay Old Guinlo and is approximately sixteen (16) kilometers long.

The FMR project aims to shorten the route in transporting farm and marine

produce from Barangay Old Guinlo and its neighboring barangays to the

Poblacion. Barangay Old Guinlo is one of the barangays located in the

Malampaya, the Fishing Ground of the Philippines.

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Taytay

Barangay: Poblacion – Old Guinlo

Project Cost:

Phase I : ₱ 2,000,000.00

Phase II: ₱ 1,000,000.00


Latitude : 10°50'23.16"N

Longitude : 119°27'40.09"E


Source of Fund: 20% Development Fund for CYs 2012 and 2013


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2.7. Development of Marirong to Cayasan FMR in Bgy. Nicanor Zabala, Roxas,

Palawan

The Marirong to Cayasan farm-to-market road was a project funded out of

the 20% Development Fund of calendar year 2012 and implemented “by

administration” on January 2015. Sitio Marirong of Bgy. Nicanor Zabala, about

thirty (30) minutes travel from town proper, is an access road that connects the

National Road to Cayasan Falls.

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Roxas

Barangay: Nicanor Zabala Project Cost: ₱102,216.80


Latitude : 10°8'11.25"N

Longitude : 119°11'54.50"E




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2.8. Maintenance of Iniaran FMR, Bgy. Labog, Sofronio Española, Palawan

The municipality is also a good source of other marine products such as crabs and shrimps. It has 152 hectares of fishponds and 4 hectares of seaweed farms.

In CY 2002, The Asian Development Bank (ADB) assisted Agrarian Reform Community Program (ARCP) benefitted the Labog Iniaran Reform Community (Labog ARC) by granting the Iniaran Farm to Market Road project with the municipality providing its equity of P1,493,897.83 for its construction.

GROUND TRUTHING

Province: Palawan Municipality: Sofronio Española

Barangay: Labog Project Cost: ₱75,000.00


Latitude : 9°3'43.44"N





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2.9. Maintenance of Kanangkaan FMR, Bgy. Punang, Sofronio Espanola, Palawan

The Kanangkaan road at Barangay Punang was one of the projects of the

Department of Agrarian Reform under the Agrarian Reform Infrastructure

Support Project II (ARISP) wherein, as its share, the Municipality committed to

maintain the said road after its completion.

GROUND TRUTHING

Province: Palawan Municipality: Sofronio Española

Barangay: Punang Project Cost: ₱63,500.00







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2.10. Improvement and Rehabilitation of Bgy. Kalatagbak, Quezon, Palawan

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Quezon

Barangay: Kalatagbak Project Cost: ₱ 953,390.37


Latitude : 9°15'20.32"N





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2.11. Regravelling of Sitio Mati and Paratungon roads, Barangay Pangobilian,

Brooke’s Point, Palawan

The project covers re-graveling of 3,240 meter-roads in two (2) separate

locations at Barangay Pangobilian namely Sitio Paratungon and Sito Mati, both of

which were implemented by Administration. Although not specifically identified

as Farm-to-Market Road (FMR) in the Annual Investment Plan, the project was

determined and reported by the Municipal Engineer as FMR project in the list

submitted for purposes of CPA.

GROUND TRUTHING


Barangay: Pangobilian Project Cost: ₱ 200,000.00


Sitio Mati

Latitude : 8°48'24.93"N


Sitio Paratungon

Latitude : 8°47'41.83"N

Longitude : 117°49'59.28"E



Sitio Mati

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Sitio Paratungon

The citizen participatory audit was conducted to:

3.1. Validate the existence of the reported accomplishments;

3.2. Validate compliance of reported accomplishments with the approved plans and specifications; and

3.3. Validate if reported accomplishments are in accordance with the contract schedule.

3.4. Ascertain the existence of appropriations for the FMR projects and to determine whether the obligation did not exceed the allocations for the same.

3.5. Determine whether the LGU complied with the detailed engineering requirements of Annex A of the Revised IRR of RA No. 9184.

3.6. Determine whether the procurement of materials and labor is in accordance with the provisions of RA No. 9184 and its Revised IRR.

3.7. Determine the reasonableness of the expenditures for the FMR project.

3.8. Determine the existing condition of the project.

3.9. Determine whether the FMR project attained its main objective of providing a safe and convenient transport of agricultural and fishery products from production areas to the nearest existing roadway system that provides access to the nearest market center.

3.0 AUDIT OBJECTIVES

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The standards/benchmarks used as basis for the validation were: 4.1. Section 62.2.2.1 of the Revised Implementing Rules and Regulations (R-IRR) of

Republic Act (R.A.) No. 9184 The contractor shall undertake the repair works, at his own expense,

of any damage to the infrastructure on account of the use of materials or inferior quality, within ninety (90) days from the time the Head of the Procuring Entity has issued an order to undertake repair. In case of failure or refusal to comply with this mandate, the procuring entity shall undertake such repair and shall be entitled to full reimbursement of expenses incurred upon demand.

4.2. Section 2 of the Presidential Decree (P.D.) No. 1445

It is the declared policy of the state that all resources of the

government shall be managed, expended or utilized in accordance with laws and regulations and safeguarded against loss or wastage through illegal or improper disposition for the purpose of ensuring efficiency, economy and effectiveness in the operations of the government.

4.3. DPWH Order No. 29 series of 2011 dated May 16, 2011

Revised guidelines on the Preparation of Approved Budget for the Contract

provides for laboratory tests, the cost of which, is part of the indirect cost component of the ABC.

4.4. Procurement Manual for Local Government Units, Volume III, Infrastructure

Projects issued by the Government Procurement Policy Board (GPPB) Indicates the scope of the right of the Procuring Entity to inspect the

infrastructure project procured and conduct material tests, to ensure that all materials and workmanship are in accordance with the requirements of the contract.

It was further stated in the said Manual that in case the materials and

workmanship were found defective or not in accordance with the specifications, the Procuring Entity must notify the Contractor immediately of such rejection1.

4.5. Approved Budget for the Contract (ABC)

1 Page 64, Right of Inspection of the LGU, Procurement Manual for LGUs, Volume III

4.0 AUDIT CRITERIA

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Refers to the budget for the contract duly approved by the Sanggunian. The ABC shall be the upper limit or ceiling for acceptable bid prices.

4.6. Section 2.2.3 of COA Circular No. 2013-004 dated January 30, 2013

For infrastructure projects, a tarpaulin signboard must be suitable framed

for outdoor display at the project location, and shall be posted as soon as the award has been made. The design and format of the tarpaulin, as shown in Annex “A,” shall have the following specifications:

Tarpaulin, white, 8 ft x 8 ft Resolution: 70 dpi Font: Helvetica Font Size: Main Information – 3” Sub-Information – 1” Font Color: Black

4.7. Government Procurement Policy Board (GPPB) Resolution No. 018-2006: Approving and Adopting the Revised Guidelines for the Implementation of Infrastructure Projects by Administration.

4.8. Republic Act No. 8435 or the “Agriculture and Fisheries Modernization Act of 1997;

4.9. Republic Act No. 10601 or the “Agricultural and Fisheries Mechanization (AFMech) Law”;

4.10. Philippine Agricultural Engineering Standards for Farm to Market Roads (PAES 421:2009);

4.11. Republic Act No. 7160 or the “Local Government Code of 1991”;

4.12. Republic Act No. 9184 or the “Government Procurement Reform Act” and its Revised Implementing Rules and Regulation (RIRR);

4.13. Government Procurement Policy Board (GPPB) Resolution No. 018-2006: Approving and Adopting the Revised Guidelines for the Implementation of Infrastructure Projects by Administration;

4.14. COA Circular No. 2012-003 dated October 29, 2012 re: Updated Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive, Extravagant and Unconscionable Expenditures;

4.15. Generally accepted principles and practices of accounting, sound management and fiscal administration;

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4.16. Approved plans and specifications, detailed breakdown of project cost, and project implementation schedule of the particular projects subject to the audit.

The Audit Team went through the following activities:

Compliance Audit:

5.1. Identification of applicable design standards for FMR projects and understanding the following laws and rules and regulations:

a. DPWH Department Order No. 11 for FMR construction projects implemented from Calendar Year 2014 and onwards; or

b. PAES 421:2009 for FMR projects not covered by DPWH DO No. 11;

5.2. Obtaining the following relevant documents and information regarding the FMR:

a. Approved Plans and Specifications;

b. Approved and updated Program of Works and Detailed Estimates;

c. Approved Budget for the Contract;

d. Contract Agreement in case of straight contract;

e. As-Built Plan;

f. Latest Statement of Work Accomplished (SWA);

g. Previous Inspection Reports;

h. Disbursement Vouchers covering the expenditures incurred for the projects;

i. Annual Investment Program;

j. Annual Budget or Local Expenditure Program;

5.3. Communicating to the LGU the deficiencies through Audit Observation Memorandum (AOM), if any;

Technical Evaluation and Inspection:

5.4. Evaluation of the approved plans and specifications against applicable design standards;

5.5. Comparison of reported accomplishments against the approved plans and specifications;

5.0 AUDIT METHODOLOGY

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5.6. Ocular site inspection on the FMR project, which involve the following activities among others: a. Measurement and recording of road dimensions;

b. Taking of photographs;

c. Observation of the project’s current physical condition and the apparent irregularities, if any; and

d. Geo-tagging of the FMR project;

5.7. Computation of quantities of project accomplishments and their costs, aligned with the results of the Technical Evaluation of the projects;

5.8. Comparing the results of inspection against reported accomplishments and taking note of deviations;

5.9. Analysis of the effects of project deviations to the project cost;

5.10. Comparison of the actual time of completion against the project implementation schedule and taking note if there is delay in completion;

5.11. Analysis of the effects of delay on the project completion, and computation of liquidated damages, if any;

Performance Audit:

5.12. Interview with the residents in the area;

5.13. Analysis of the information gathered through interview;

Financial Audit:

5.14. Comparing the fund appropriations of the project against the obligations and actual expenditures incurred;

5.15. Checking of mathematical accuracy of the actual expenditures;

5.16. Verifying the correctness of accounting entries;

5.17. Tracing of accounting entries from Journal Entry Vouchers (JEV) to Accounting Journals and to the Ledgers;

5.18. Checking if all disbursements on FMR projects as of year-end were recorded in the books of that year;

5.19. Analyzing the effects of noted deficiencies on the presentation of financial statement.

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6.0 AUDIT PERIOD

The Citizen Participatory Audit planning and fieldwork were conducted from

December 2014 to January 2015. Data processing and analysis were conducted from January to June 2015.

Location Inspection Date Puerto Princesa City Jan. 20, 2015 Taytay, Palawan Feb. 4, 2015 Roxas, Palawan Feb. 4, 2015 El Nido, Palawan Feb. 6, 2015 Araceli, Palawan Feb. 10, 2015 Brooke’s Point, Palawan Feb. 2 - 3, 2015 Sofronio Española Jan. 22, 2015

7.1. Implementation of FMR by Contract

7.1.1. Concreting of Kamuning Road Phase II, Barangay Kamuning, Puerto Princesa

City, Palawan

The concreting of Kamuning Road - Phase II Farm to Market Road (FMR) amounting to ₱7,800,438.00 resulted to deficiencies of government funds totaling ₱2,082,277.23.

Section 62.2.2.1 of R-IRR of R.A. No. 9184 states that:

The contractor shall undertake the repair works, at his own

expense, of any damage to the infrastructure on account of the use of

materials or inferior quality, within ninety (90) days from the time the

Head of the Procuring Entity has issued an order to undertake repair.

In case of failure or refusal to comply with this mandate, the procuring

entity shall undertake such repair and shall be entitled to full

reimbursement of expenses incurred upon demand.

Section 2 of the Presidential Decree No. 1445 provides that

It is a declared policy of the state that all resources of the

government shall be managed, expended or utilized in accordance

with laws and regulations and safeguarded against loss or wastage

through illegal or improper disposition for the purpose of ensuring

efficiency, economy and effectiveness in the operations of the

government.

7.0 AUDIT RESULTS

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Inspection of the project conducted by the Citizen Participatory Audit

(CPA) Team that includes the COA engineers and members of the CSOs and a

representative from the City Engineering Office on January 20, 2015 disclosed

various defects/deficiencies (further details shown in Annex 1A), as follows:

7.1.1.1. Tarpaulin signboard did not comply with the prescribed format of Section 2.2.3 of COA Circular No. 2013-004 dated January 30, 2013 which resulted to a discrepancy amounting to ₱13,401.25 ;

7.1.1.2. The project was already declared 100% completed based on the Accomplishment Report of the City Engineering Department as of December 29, 2014 but not yet actually completed upon actual inspection of the CPA Team on January 20, 2015. The project should have been completed on June 14, 2014 but there were still laborers working on the pavement putting asphalt sealant on weakened joints and in between the cracks that were visible when the Team arrived, which resulted to a time delay of 220 calendar days or liquidated damages amounting to ₱326,058.31;

The construction time was beyond the construction period of

ninety (90) days as stipulated in the contract. Duly approved suspension and/or extension of work order were not submitted despite demands by the Audit Team.

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7.1.1.3. The contractor put up a makeshift storeroom only instead of constructing field office/bunkhouse to store the construction materials, which resulted to a discrepancy of ₱68,178.88;

7.1.1.4. The road shoulders on both sides of the concrete pavement

throughout the project were made up of river stones instead of the required Aggregate Surface Course (Item 300) as required in the Program of Work and detailed plan, which resulted to a deficiency of ₱1,052,209.24;

7.1.1.5. There was only one line barrel culvert constructed instead of two (2)-line RCPC cross drain with headwall as required on the submitted Program of Works, thus resulted to a deficiency of ₱80,081.62;

7.1.1.6. Serious transverse cracks, uneven brooming and absence of asphalt filler involving 2 concrete blocks at Sta. 0+089 (Latitude: 9°31'43.99"N, Longitude: 118°37'16.82"E), thus resulted to a deficiency of ₱37,403.33;

26

7.1.1.7. Side cracks about five (5) meter in length, uneven brooming, vehicle related concrete scratches and unsealed weakened joints at Sta. 0+123 (Latitude: 9°31'44.06"N, Longitude: 118°37'15.86"E), which calls for the removal of two (2) concrete blocks amounting to ₱37,403.33;

27

7.1.1.8. Settlement of about two (2) concrete blocks coupled with longitudinal cracks beginning at Sta. 0+156 (Latitude: 9°31'44.07"N, Longitude: 118°37'15.33"E), which resulted to a deficiency of ₱37,403.33;

7.1.1.9. Serious transversal cracks located within the middle third of two (2) concrete blocks, absence of asphalt filler, uneven brooming and scaling at Sta. 0+221 (Latitude: 9°31'44.27"N, Longitude: 118°37'12.40"E), which resulted to a deficiency of ₱37,403.33;

28

7.1.1.10. Multiple road defects such as serious scaling, poke marks, absence of asphalt filler, spalling, uneven brooming and serious longitudinal cracks running diagonally in a concrete block were observed from the beginning of Sta. 0+249 (Latitude: 9°31'44.35"N, Longitude: 118°37'11.24"E), which resulted to a deficiency of ₱18,701.66;

29

7.1.1.11. Spalling, serious scaling involving two (2) concrete blocks, longitudinal cracks in single concrete block, vehicle related road scratches, uneven brooming of concrete and unsealed weakened joints at Sta. 0+313 (Latitude: 9°31'44.50"N, Longitude: 118°37'8.58"E), which resulted to a deficiency of ₱56,104.98;

7.1.1.12. Major scaling, longitudinal and transverse cracks involving two (2) concrete blocks; poke marks, unsealed weakened joints, vehicle related scratches and spalling at Sta. 0+402 (Latitude: 9°31'44.69"N, Longitude: 118°37'6.41"E), which resulted to a deficiency of ₱224,419.98;

30

7.1.1.13. Serious transverse cracks located within the middle of third of two (2) concrete blocks, scaling, uneven brooming and absence of asphalt filler at Sta. 0+427 (Latitude: 9°31'44.76"N, Longitude: 118°37'5.61"E), which resulted to a deficiency of ₱37,403.33;

7.1.1.13. Transverse cracks located within the middle third of the concrete block, scaling and unsealed weakened joints at Sta. 0+600 (Latitude: 9°31'45.04"N, Longitude: 118°37'0.31"E), which resulted to a deficiency of ₱37,403.33;

7.1.1.14. One (1) concrete block with serious scaling, transversal cracks, spalling, uneven brooming and unsealed weakened joints at Sta. 0+703 (Latitude: 9°31'45.48"N, Longitude: 118°36'56.98"E), which resulted to a deficiency of ₱18,701.66;

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7.1.1.15. Stones of about four (4) inches in diameter were observed exposed on the pavement surfaces which indicate that the used of incorrect sizes of gravel as required in the construction of Item 311 – PCCP (Portland Cement Concrete Pavement) located at the beginning of Sta. 0 + 453/493;

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7.1.1.16. Major scaling, wide transverse/longitudinal cracks and vehicle related scratches running across and along the concrete pavement at intermittent sections of the road ;

Random Samplings were done to verify the thickness of Item 311-RCCP

by digging and removing portion of the road shoulders The project has

complied with the standard thickness of 0.20 meter.

33

As of this date, Management has not yet caused the rectification of these

defects, despite available remedies under R.A. No. 9184 and its R-IRR.

These remedies are summarized as follows:

62.2.2. One (1) year from project completion up to final acceptance or the

defects liability period.

62.2.2.1. The contractor shall undertake the repair works, at his own

expense, of any damage to the infrastructure on account of the use

of materials of inferior quality, within ninety (90) days from the

time the Head of the Procuring Entity has issued an order to

undertake repair. In case of failure or refusal to comply with this

mandate, the procuring entity shall undertake such repair works

and shall be entitled to full reimbursement of expenses incurred

therein upon demand.

62.2.2.2. The defects liability period shall be covered by the Performance

Security of the contractor required in Section 39.1 of this IRR, which

shall guarantee that the contractor performs his responsibilities

stated in the immediately preceding Section. If the contractor fails

to comply with its obligations under Section 62.2.2.1 of this IRR, the

procuring entity shall forfeit its performance security, subject its

property(ies) to attachment or garnishment proceedings, and

perpetually disqualify it from participating in any public bidding. All

payables of the GOP in his favor shall be offset to recover the costs.

With respect to the quality of materials and workmanship the following

guidelines were issued to ensure project quality:

DPWH Order No. 29 series of 2011 dated May 16, 2011, re: Revised Guidelines on the Preparation of Approved Budget for the Contract (ABC), provides for laboratory tests, the cost of which, is part of the indirect cost component of the ABC;

Procurement Manual for Local Government Units (Volume III), GPPB, indicates the scope of the right of the Procuring Entity to inspect the infrastructure project procured and conduct material tests, to ensure that all materials and workmanship are in accordance with the requirements of the contract.

It was further stated in the said Manual that in case the materials and

workmanship were found defective or not in accordance with the

34

specifications, the Procuring Entity must notify the Contractor immediately of

such rejection.

Based on the above guidelines, the agency is equipped/backed-up with

the necessary laws, rules and regulations to ensure the quality of work done

and/or the rectification of defects in the project by the contractors. Non-

availment of these remedies in due time will result in deprivation of the public

of the maximum use and full benefits of the project, and wastage of

government funds and property.

Based on the noted deficiencies, the submitted Field Density Test and

Compaction Test could not be relied upon by the Audit Team, thus, we

requested that coring test be conducted to assure that quality materials were

used. However, the Management had not yet arranged for the coring

equipment to be used and the schedule of testing.

7.1.2. Concreting of Inogbong Road, Bataraza, Palawan

7.1.2.1. The road concreting project minimized the difficulty of farmers within the

area in transporting their farm produce to the market.

The Inogbong Road links the National Highway to the seashore and

traverses for the most part a span of rice fields. The road has rough surface

covered mostly by loose gravel and as such, the transport of farm produce to

the market was difficult particularly during rainy season.

With the concreting of the Inogbong Road, the transport of farm

produce was somehow made easier. The two-lane concrete road provided

easy and comfortable movement of vehicles.

But the project has minimal or limited benefits in that the road

concreting extends only to 400 meters from the National Highway. As shown

in the illustration below, the concrete road (marked as red) takes up fourteen

35

percent (14%) of the entire length of the Inogbong road of approximately

2,774 meters. Thus, farmers with rice fields located in the interior still have

difficulty in mobilizing their products due to the existing road condition.

Ocular inspection likewise disclosed that there were only few farmers

and fisher folks within the area who have access to the road.

7.1.2.2. There were defects noted during the inspection of the Inogbong Road

concreting project which, if not corrected, may eventually compromise the

safety of the riding public and cause damage to the farm produce during

transport.

The concreting project of the road to Inogbong seashore was

completed on March 4, 2014 per certification of the Municipal Engineer

dated March 5, 2014. Almost a year after, the CPA Team conducted an

inspection of the project on February 4, 2015 and noted various defects as

follows:

e. The concrete surface showed light to severe scaling throughout the 400-meter road. Scaling is a local flaking or peeling of a finished surface of hardened concrete which generally starts as localized small patches which later may merge and extend to expose large areas. Light scaling does not expose the coarse aggregate. In contrast, moderate scaling exposes the aggregate and may involve loss of the surface mortar. In severe scaling, more surface has been lost and the aggregate has been clearly exposed and stands out.

36

Light scaling

Moderate scaling

Severe scaling Severe Scaling

f. Minor cracks are beginning to develop.

37

g. The scaling or patches on the pavement showed impurities or presence of objects such as wood in the concrete mixtures.

38

h. No concrete/asphalt sealant at construction joints.

i. Improper brooming affected the roughness of the surface.

The defects were noted or discovered within one (1) year from the date

of the completion, and thus, within the defects liability period and still

covered by the performance security posted by the contractor, E.C.

Timbancaya Enterprises. The Municipal Engineer was verbally instructed by

the COA TAS during inspection to inform the Contractor to address the noted

defects as they are still within the defects liability period.

7.1.2.3. Of the total project cost of ₱4,817,585.00, the funding source for the

amount of ₱2,408,792.50 paid during CY 2014 is doubtful due to lack of

continuing appropriations specifically allocated for the project.

The road concreting project was funded under the 20% Development

Fund for CY 2013. The project was started in CY 2013 but was completed only

in CY 2014. The total project cost of ₱4,817,585.00 was paid as follows :

Date of ObR Charges in ObR Obligation

Request (ObR) No.

Particulars (% of

Accomplishment) Date of OR Amount

Dec. 2, 2013 20% DF – 2013 300-2013-12-5050 First Billing (50%) Dec. 5, 2013 2,408,792.50

Feb. 11, 2014 20% DF – 2013

Continuing

appropriation

300-2014-02-0094 Second Billing

(75%)

Mar. 12, 2014 1,204,396.25

Mar. 20, 2014 20% DF – 2013

Continuing

appropriation

300-2014-03-0593 Final Billing (100%) Mar. 12, 2014 1,204,396.25

Total 4,817,585.00

39

As shown above, payments for the second and final billing in CY 2014

totaling ₱2,408,792.50 were charged to the “20% DF–2013 Continuing

Appropriation” and duly obligated during CY 2014. However, review of the

budget reports such as the Status of Appropriations, Allotments, Obligations

and Balances (SAAOB) disclosed that there were no continuing

appropriations allocated specifically for the concreting of Inogbong seashore

road for CY 2013. The Budget Officer neither reported any obligation in

SAAOB for continuing appropriations representing payment for the second

and final billing in CY 2014 totaling ₱2,408,792.50 although the Obligation

Requests (ObR) attached to the payments showed otherwise.

Section 305 of the Local Government Code of 1991 (RA 7160) states

that “No money shall be paid out of the local treasury or depository except in

pursuance of an appropriations ordinance or law.”

7.1.2.4. The Contractor failed to comply with the project implementation period,

thereby incurring a delay of 13 calendar days.

The contract for concreting of the 400-meter road to Inogbong

seashore was awarded on November 7, 2013 to E. C. Timbancaya Enterprises

declared by the BAC as the single calculated and responsive bidder with the

bid amount of ₱4,817,585.00. The contractor was given notice to commence

the work in 7 days after its receipt of the Notice to Proceed (NTP) on

November 12, 2013. Since the contract duration was for 90 days as indicated

in the Invitation to Bid, the contract time should have started on November

19, 2013 and expected to be completed on February 19, 2014. But as

certified by the Municipal Engineer, the project was completed only on

March 4, 2014, without any request for extension, thereby incurring 13

calendar days of delay.

Section 68 of RA 9184 requires that liquidated damages equivalent to

1/10 of one percent (0.1%) of the cost of unperformed portion shall be paid

by the contractor for every day of delay. Hence, the contractor is liable to

pay for the liquidated damages for such delay.

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7.1.2.5. The contract agreement does not contain a provision on liquidated

damages contrary to Section 68 of RA 9184.

Section 68 of RA 9184 states that “All contracts executed in accordance

with the Act and this IRR shall contain provision on liquidated damages which

shall be payable by the contractor in case of breach thereof”.

Contrary to the foregoing, the contract agreement executed by and

between the Municipal Government of Bataraza and E.C. Timbancaya

Enterprise does not contain any provision on the imposition of liquidated

damages in case of incurrence of delay. Said contract, however, deemed to

form, and be read and construed as part of the agreement the document

“General and Special Conditions of Contract” which include provisions on

liquidated damages, thus, the Contractor shall still be held liable for such

delay.

7.1.2.6. Non-submission of As-Built Plan and Clearance from the Provincial

Treasurer on payment of sand and gravel fees contrary to COA Circular No.

2012-001.

Item 9.1.1.4 of COA Circular No. 2012-001 dated June 14, 2012 requires

among others the following documents to support the claim for final

payment of infrastructure projects:

1. As-Built Plan 2. Clearance from the Provincial Treasurer that the corresponding sand and

gravel fees have been paid (DPWH Department Order No. 109 s. 1993 dated May 4, 1993 and DO No. 119 s. 1993 dated May 11, 1993)

However, the documents supporting the final payment for the project

do not include the As-Built Plan that should have been submitted by the

Contractor to validate the actual work accomplished and determine any

deviation or variation from the original plan/design. The required Clearance

from the Provincial Treasurer was neither submitted to support the

Contractor’s claim for final payment.

7.1.2.7. Non-observance of the “one-year period after the completion of the

project” in the issuance of the final acceptance of the project.

The LGU Procurement Manual, Volume 3, states that a warranty is

required to ensure that the contractor will correct structural defects and

failures. It should be noted that a one-year period after the completion of

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the project, called the defects liability period, is observed until final

acceptance by the LGU.

Contrary to the one-year period, the Municipal Mayor issued a

certificate of acceptance dated March 6, 2014, only two (2) days after the

concreting project was completed on March 4, 2014. It should be the

contractor, not the Municipality, who shall assume full responsibility for any

damage or destruction of the works except those occasioned by force

majeure, from the time the project construction was completed up to the

final acceptance of the Municipality.

7.1.2.8. The contract agreement erroneously indicated the Approved Budget for the

Contract (ABC) of ₱4,823,152.88 as the amount to be paid to the Contractor

for the project instead of the bid amount of ₱4,817,585.00.

Pertinent provision in the contract agreement states that:

“WHEREAS, the Entity is desirous that the Contractor execute

Road Concreting 400 mts. to Inogbong Seashore in the

Municipality of Bataraza, Palawan with PhilGEPS ITB Reference

No. 2403419, and the Entity has accepted the Bid for Four Million

Eight Hundred Twenty Three Thousand One Hundred Fifty Two

pesos & 88/100 (PHP 4,823,152.88) by the Contractor for the

execution and completion of such Works and the remedy of any

defects therein.”

The amount of ₱4,823,152.88 cited in the contract to be paid to the

Contractor for the project is the Approved Budget for the Contract (ABC). The

bid amount of the Contractor, E.C. Timbancaya, is actually for ₱4,817,585.00

only. Despite this error, the Municipality was able to pay the Contractor the

correct amount of ₱4,817,585.00.E

7.1.3. Improvement of Malatgao-Culandanum-Panas-Linao Road, Bataraza,

Palawan

7.1.3.1. The contractor failed to comply with the project implementation period

stated in the Contract Agreement, resulting to a delay of 200 calendar days.

Item No. 9 of the Contract Agreement between the Provincial

Government of Palawan and Kim Harrold Trading, Manufacturing &

Construction for the Improvement of Malatgao-Culandanum-Panas-Linao

Road, Bataraza, Palawan states that:

42

The Contractor further agrees to begin work on the Project

within seven (7) days following the date of the NOTICE TO

PROCEED, and to complete the same within 120 calendar days,

including Sundays and legal holidays. The contract time shall begin

on the seventh day following the date of the NOTICE TO PROCEED

unless additional time shall be allowed. (emphasis supplied)

The Notice to Proceed was dated February 15, 2013, hence the contract

time of 120 calendar days began on February 22, 2013 and expired on June

22, 2013. However, pertinent records and transaction documents disclosed

that the project was completed only on January 8, 2014, which was 200

calendar days beyond the contract time.

Review of transaction documents showed that no work suspension or

time extension orders were issued for the delay of project completion.

Accordingly, the project engineer prepared a report showing a computation

of liquidated damages amounting to ₱91,259.59 (see Appendix 5). The said

amount has been deducted from the payment of final billing.

7.1.3.2. Defects such as damaged box culverts, loose surfacing materials, undefined

earth side ditches and crowning of roadways have been observed during

inspection of the Farm-to-Market Road, contrary to the Detailed

Engineering Plans and Specifications of the project.

The submitted plans and specifications on the Improvement of

Malatgao-Culandanum-Panas-Linao Farm-to-Market Road, Bataraza, Palawan

disclosed the following data:

The project starts at Km. 237 + 500 and ends at Km. 248 + 000 with a

total length of 10.50 km., as per submitted Program of Work by the

Agency.

The said project is a Re-shaping and Re-gravelling of 10.5 kilometer road

and Construction of 4 barrels of Reinforce Concrete Box Culvert, with the

following programmed items:

Item No. Description Quantity Unit

SPCL-1 General Requirements

a. Project Sign Board 2.0 sets

b. Safety and Health 1.0 lot

c. Temporary Bunkhouse 1.0 lot

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SPCL -2 Re-Shaping & Ditching 10.50 Km.

200 Aggregate Sub-Base Course 500.00 cu.m.

201 Aggregate Base Course 2,674.00 cu.m.

SPCL -3 Const. of 4 Barrel RCBC 1.0 unit

The Audit Team conducted ocular inspection of the project on January

27, 2015 and performed actual measurement by using a digital type walking

measure and GPS-enabled android cellular phone for Geo-tagging. Project

Billboard was nowhere to be found at the beginning and end of the project.

According to the project engineer, it might have been dismantled by the local

residence.

The following were data collected during the inspection:

Post Kilometer

Reading Station REMARKS

Km 237+500 0+000 Start of the Project and beginning station of re-

shaping of road, Item 200 and Item 201 , Road

Width= 6.1 m

Km 237 + 580 0+180 Road defect: Intermittent Potholes located with

intervals of about 7m.

Km 237+ 966 0+466 Existing Box Culvert not included in the program of

work

Km 238 + 347 0+847 1st Road Intersection, road with 6.0 width

Km 238 + 780 1+280 Undefined earth side ditches and crowning of

roadway and loosed surfacing materials about 5

meters in road length

Km 239 + 101 1+601 Properly maintained and compacted section of

road, with 6.0m width

Km239 + 378 1+878 Loosed surfacing materials with oversized

aggregates about 5 meters in length, undefined

earth side ditches and crowning of roadway with

6.0m width

Km 239 + 490 1+990 Ascending road leading to mountain, properly

maintained with average width 5.5 meters

Km 240 + 377 2 +877 Surfacing materials Stock pile along the road

intended for maintenance of road

Km 240 + 592 3 + 092 2nd Road Intersection with average width 5.5m

Km 240 + 903 3 + 403 Potholes with impounded water , undefined earth

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Post Kilometer

Reading Station REMARKS

side ditches and crowning of roadway

Km 242 + 074 4 +574 Kulimbawang Village under Brgy. Kulandanum with

road width of 6.1 m, was properly maintained

with defined earth side ditches and crowing of

road

Km 242 + 349 4 + 849 Start of ascending road , start of road maintenance

with width of 6.0 m

Km242 + 735 5+ 235 Damage Reinforce Concrete Box Culvert with

detached front left wing wall

Km 242 + 749 5 +249 End of road maintenance

Km 243 + 445 5 + 945 Undefined earth side ditches and crowning of

roadway with vegetation on both side of the

road, with 5.5 m width

Km 243 + 780 6 +280 Panas Elementary School, Road were properly

maintained and compacted with 6.0 m width

Km 244 + 000 6 + 500 Undefined earth side ditches and crowning of

roadway with vegetation on both sides of the

road, with 5.5 m width

Km 245 + 512 8 +012 Site of Wooden Bridge

Km 246 + 500 9 +000 Properly maintained and compacted section of

road 6.0 m width

Km 247 + 205 9 +705 Loosed surfacing materials with oversized

aggregates

Km 247 + 500 10 +000 Properly maintained and compacted section of

road with 6.0 m width

Km. 247 + 748 10 + 248 Loosed surfacing materials with oversized

aggregates

Km 247 + 838 10 + 338 Existing Reinforce Concrete Box Culvert

Km 248 + 030 10 + 530 Properly maintained and compacted section of

road, with 6.0m width

Km 248 + 600 11 + 100 Site of Linao Elementary, properly maintained and

compacted section of road , 6.0 m width, End of

Project

The damaged four (4) barrel Reinforce Concrete Box Culverts (6 m x 12

m) at station Km 5+235 has a detached left wing wall from its major

structure and an eroded road approach of about 12.5 sq.m. This may be due

to the various debris that block the opening of RCBC waterways and forcing

45

the water to change course and damaged the said section of the RCBC

approached road.

As per gathered data, the 11,100 linear meters (11.1 Km.) actual length

measured by the team has exceeded the programmed length of 10,500

meters (10.5Km.) and the measured average width of 6 meters conformed

with the programmed width.

The defects noted during actual inspection ranging from loose surfacing

materials, undefined earth side ditches and crowning of roadways, are the

common defects that arise in road re-graveling.

7.1.3.3. The implementation of Malatgao-Culandanum-Panas-Linao Farm-to-Market

Road project greatly improved the travel condition of the riding public and

uplifted the living standards of the residents.

The Malatgao-Culandanum-Panas-Linao Road, Bataraza, Palawan

pertained to a secondary road traversing from the Bataraza-Rizal National

Road starting at Barangay Malatgao, Bataraza through Barangay

Culandanum, Sitio Panas, Linao to Barangay Candawaga, Rizal, Palawan.

The project aimed to be an all-weather road and improve the existing

10.5 kilometers road by re-gravelling, re-shaping and construction of 4

barrels reinforced concrete box culvert. It would shorten the travel distance

from southern municipalities of Brooke’s Point and Bataraza to Municipality

of Rizal, Palawan, making it passable to all types of vehicle and thus,

facilitating the transport of goods and services. It was likewise intended to

uplift the living standards of residents in the concerned Barangays and bring

them into the mainstream of economic development.

Upon inspection, the Audit Team found that the total project length

actually measured 11.1 kilometers.

As per interview, the barangay residents expressed appreciation on the project considering that they no longer have to travel very long distances between the southern municipalities due to road shortcut. All of the respondents found the location and design of the road project to be proper and beneficial to nearby residents and more importantly to farmers. Furthermore, most of them agreed that the road provided adequate space and smooth road surface for the safe and convenient transport of products and also for efficient internal circulation within the development area.

46

Overall, the respondents showed highly favorable observations toward the project.

7.2. Implementation of FMR by Administration

7.2.1. Graveling of Loblob to Calitang Road in Bgy. Bucana, El Nido, Palawan

7.2.1.1. The Gravelling of Loblob-Calitang Road project costing P170,479.82 under the 20% Development Fund of CY 2013 was implemented without detailed engineering plans specifying the portion/s of the road for gravelling or patching, equipment utilization and project implementation schedules, monitoring or accomplishment reports and photographs documenting the project accomplishment.

Annex A of the Revised IRR of RA No. 9184 provides, in part, that “No

program of work for any project shall be approved without detailed

engineering.”

Item 2 of the same Annex provides that detailed engineering activities

shall include, among others, the conduct of survey and site investigation and

preparation of design plans, technical specifications, quantity and cost

estimates, program of work and construction schedule.

Based on the submitted Program of Work and Cross-Section Plans, the

scope of works involved patching/grading of 4.0 km long x 4.0 meters wide

unpaved Loblob-Calitang road and repair of 14.0 meter timber footbridge

within it.

Estimated and actual costs incurred on the project are as follows:

Qty Amount Qty Amount

I. Road regravelling

Aggregate base course (in cubic meters) 40 45,000.00 60 45,000.00

Diesel (in liters) 1,000 53,000.00 1,000 53,000.00

Oil and lubricants 32,000.00 6,825.00

130,000.00 104,825.00

II. Repair of footbridge

50 pcs - 2" x 6" x 18" ipil stringer (in board feet) 900 24,300.00 900 24,300.00

61 pcs - 2" x 4" x 10" floor joist (in board feet) 406.66 10,979.82 406.66 10,979.82

55 pcs - 11/2" x 10" x 18" flooring (in board feet) 1,125 30,375.00 1,125 30,375.00

C.W. nail 5" (in kilos) 3 255.00



Materials 66,419.82 65,654.82

Labor 3,580.18

70,000.00 65,654.82

Total 200,000.00 170,479.82

Estimated Actual

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The program of work did not specify the period/ inclusive dates of

project implementation. There were no detailed plans identifying the

locations/stations to be patched within the 4 kilometers stretch of road.

There was also no supporting equipment utilization schedule.

The Office of the Municipal Engineer reported that the “Gravelling of

Loblob-Calitang Road” project was a farm-to-market road project

implemented in August to September 2013. However, there were no

monitoring or accomplishment reports on the project, documentation of

reference points where gravel patch was made and photographs taken

before, during and after project implementation. There were also no fuel

consumption report and equipment (road grader) utilization report

supporting the expenditures for fuel.

The actual accomplishments also were no longer fully visible at the time

of inspection conducted by the CPA team on February 5, 2015. Still, the

technical audit specialist in the team noted the following:

a. Repair of timber footbridge – Only the 12” running boards appeared to be new. Other visible wooden members of the footbridge like flooring and joists appeared to be old and were not replaced. At the time of inspection, the left end portion of the footbridge was noted to have already tilted or collapsed causing difficulty for vehicles to pass by the bridge. Estimated cost of installed flooring is P8,743.00. The estimated cost of repair per Program of Work is P70,000.00 or a discrepancy of P61,257.00. The actual length of timber footbridge is 13.0 meter.

Latitude: 11° 17’ 47.75” Longitude: 119° 25’ 40.25”

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b. Road Grading –There was a trough of about 30m long and 0.50m deep along the road sections of Km 0+2511, 0+3110, 0+3246, 0+3434 and 0+3745. More re-gravelling and road maintenance along these sections are needed.

Latitude: 11° 17’ 47.75” Longitude: 119° 25’ 40.25”

Km 0+2511

49

Km 0+2511

Lat: 11° 17’ 56”

Long: 119° 25’ 44.125”

Km 0+3110

Lat: 11° 18’ 12.7499”

Long: 119° 25’ 32.8749”

50

Km 0+3246

Lat: 11° 18’ 14.50”

Long: 119° 25’ 29.8749”

Km 0+3110

Lat: 11° 18’ 12.7499”

Long: 119° 25’ 32.8749”

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Interview with the residents disclosed the following:

a. Reshaping and leveling of road surface and spot re-gravelling in affected areas were undertaken in 2013. However, only thin layers of gravel and sand were placed in sections being patched and that these were not compacted by road rollers. Thus, the materials were easily washed-out by heavy rains or shoved by wheel motion to the outside as well as in-between travelled lanes leading again to rough road surface.

b. During the rainy season, the road turns muddy and slippery making it challenging if not impossible for even motorcycles to pass through.

c. The wooden footbridge cannot withstand heavy loads. Only the top portion or running surface of the footbridge was repaired.

d. The road does not provide adequate space for four-wheeled vehicles as it is only one-lane wide such that, if two vehicles are traveling in opposite directions, each vehicle shall deviate from the lane taking the shoulder in order to give way for the other vehicle to pass. This causes accidents and poses hazard to pedestrians.

e. Aggregates get washed-out to the rice plantations during heavy rains.

Accomplishment reports, reference points of road re-gravelling,

photographs, fuel and equipment utilization reports are necessary for the

Km 0+3246

Lat: 11° 18’ 14.50”

Long: 119° 25’ 29.8749”

52

validation of total project accomplishment and reasonableness of quantity

and cost of materials and fuel incurred on the project.

7.2.2. Construction/Rehabilitation and Maintenance of Local Roads, Barangay


7.2.2.1. The Barangay Poblacion to Mauringen road maintenance project costing P898,539.56 under the 20% Development Fund of CY 2014 was implemented without detailed engineering plans specifying the portions of the road to be repaired/maintained, equipment utilization and project implementation schedules, monitoring or accomplishment reports and photographs documenting the project accomplishment. Moreover, items totaling to P457,466.28 were charged to the project contrary to the approved Program of Works and Detailed Estimates.



engineering.”




estimates, program of work and construction schedule.

Based on the submitted Program of Works, the project involved

maintenance of a 33.0 km long x 8.0 meters wide road with total estimated

cost of P899,800.20. The program of works, however, did not specify the

period/ inclusive dates of project implementation. There were no road plans

and profile identifying the locations/stations to be repaired/ maintained

within the 33 kilometers stretch of road. There was also no supporting

equipment utilization schedule.

The approved Program of Works showed the following cost breakdown:

Labor Cost P117,000.00

Fuel, Oil and Spare-parts 743,400.00

VAT 39,400.20

Total P899,800.20

53

The Detailed Estimates are as follows:

Labor No. of

Person

No. of

Days

Daily

Rate Amount

a. Construction Foreman 1 60 350.00 P 21,000.00

b. Operators 2 60 300.00 36,000.00

c. Drivers 2 60 300.00 36,000.00

d. Laborers 2 60 200.00 24,000.00

Total P117,000.00

Equipment Fuel

Qty.

No. of

Days Rate/L Amount

a. 1 – Motorized Road

Grader

70 L 60 59 P247,800.00

b. 1 – Vibratory Roller 40 L 60 59 141,600.00

c. 1 – Loader 60 L 60 59 212,400.00

d. d. 1 – Dumptruck 40 L 60 59 141,600.00

Total P743,400.00

Appropriation for the Barangay Poblacion to Sitio Baing, Barangay

Mauringen road maintenance project amounted to P900,000.00 for calendar

year 2014. Based on the Registry of Appropriations, Allotments and

Obligations submitted by the OIC-Municipal Budget Officer, charges against

the appropriation for the project totaled to P898,539.56 from January to

October 2014. However, the Municipal Accountant was able to submit the

vouchers for transactions amounting to only P736,869.78, broken down as

follows:

Date Check

No. Payee Particulars Amount

Labor

03/07/14 883199 Jessie Paredes & Co. Wages Feb 18-25, 2014 Mason and

Laborer

3,000.00

05/12/14 883314-

315

Aldrin Dadaya &Co. Wages Apr 1-30, 2014 Job Order

MEO

6,900.00

04/10/14 883250 Rico Magbanua Wages Casual at the MEO Mar 1-

31, 2014

4,650.00

04/10/14 883269 Vicente Abalajon Sr. Wages Garbage Collector Mar 1-

31, 2014

4,650.00

05/15/14 883346 Joeben Paredes Wages Apr 14-24, 2014 Helper

widening of National-Provincial

road

1,400.00

54

Date Check


06/10/14 883397-

400

Aldrin Dadaya &Co. Wages May 1-31, 2014 Job Order

MEO

16,650.00

06/11/14 883428 Joeben Paredes Wages May 9-30, 2014 Helper

widening of National-Provincial

road

3,200.00

07/02/14 883451 Joeben Paredes Wages June 1-6, 2014 Laborer

clearing of barangay roads

1,000.00

08/13/14 883537-

539

Aldrin Dadaya &Co. Wages July 1-31, 2014 Job Order

MEO and Garbage Collector

10,500.00

09/10/14 883608 Aldrin Dadaya &Co. Wages Aug 1-31, 2014 Job Order

MEO

7,500.00

09/17/14 883630 Sixto Buyco Salary July 1-31, 2014 Heavy

Equipment Operator

5,500.00

09/17/14 883631 Sixto Buyco Salary Aug 1-31, 2014 Heavy

Equipment Operator

5,500.00

10/09/14 883664-

671

Aldrin Dadaya &Co. Wages Sep 1-30, 2014 Job Order

MEO

17,005.00

10/10/14 883674 Sixto Buyco Salary Sep 1-30, 2014 Heavy

Equipment Operator

5,500.00

92,955.00

Fuel

06/02/14 883392 Mark Gabriel and

Ghing Ghing Store

630 liters diesel for backhoe

loader and road grader

37,170.00

07/02/14 883465 FGP Commercial 630 liters diesel for backhoe


37,138.50


Ghing Ghing Store



37,170.00


Ghing Ghing Store


loader and dump truck

37,170.00

11/20/14 883714 FGP Commercial 630 liters diesel for backhoe

loader

37,800.00

186,448.50

Others


Ghing Ghing Store

Oil and lubricants for backhoe

loader

10,420.00

02/28/14 883181 Engr. Raul Valones Reimbursement for 2 pcs tube of

backhoe loader

1,900.00

03/03/14 883182 Kubo Beach Sing-

Along and

Restaurant

Meals and lodging of PEPO

personnel on 1/23/14 re: repair of

bulldozer

2,595.00

55

Date Check


03/03/14 883183 Western Motors

and Machine Shop

Parts & service in the repair of

differential gear of Mitsubishi

SG1B of motor grader

120,000.00

03/04/14 883184 New CBPP Palawan

Enterprises

Spareparts for dump truck 11,800.00

03/27/14 883234 Joseph Gabinete Freight of materials for MEO 1,900.00


Along and

Restaurant


personnel on Mar 19-27, 2014

8,605.00


Ghing Ghing Store

6 gallon oil #40 for road grader 3,960.00

04/30/14 883290 Danilo M. Mandal

Injection Pump

Service

Pump calibration and parts 8,700.00


Ghing Ghing Store

Oil for bulldozer used in widening

of National-Provincial road

15,700.00

06/30/14 Angelo Sabaybay Materials for repair of bulldozer 1,535.00

07/02/14 883464 FGP Commercial 1unit motolite battery for road

grader

10,000.00

07/16/14 883497 CAMEC JCB

Corporation

Spareparts for backhoe loader 97,381.47

07/16/14 883498 Lea Vulcanizing

Shop and Trading

Tires for backhoe loader 78,582.00

07/21/14 883501 Ernesto Pe Reboring and cutting of blade of

grader

4,300.00

07/22/14 883506 Wenceslao

Barrientos IV

Reimbursement for spareparts of

Mitsubishi Grader

35,399.81


Along and

Restaurant


personnel on 7/31/14

2,170.00

08/15/14 Mary Grace Beronio Reimbursement of fare for 2 tires

of backhoe loader

750.00

08/15/14 Angelo Villegas Reimbursement of battery clamp

and stainless wire for backhoe

loader and dump truck

277.00

08/15/14 Engr. Raul Valones Reimbursement of fuel filter for

bulldozer

774.00

09/17/14 883633 Joseph Gabinete Fare for tires of backhoe loader,

power sprayer etc.

2,000.00

09/17/14 883634 Engr. Raul Valones Reimbursement for labor for re-

fitting of hydraulic hose of

backhoe loader

5,206.00

09/18/14 883642 James Paredes Unspecified miscellaneous 2,100.00

56

Date Check


expenses in operation of heavy

equipment in diff. barangays

09/22/14 883647 Engr. Raul Valones Reimbursement of 1 set power

sprayer for MEO

6,426.00

10/20/14 883683 Engr. Raul Valones Reimbursement of 1 unit motolite

battery for backhoe loader

6,665.00

10/20/14 883685 DNT Sari-Sari Store 95 liters diesel and 12 liters regular

gasoline for the Office of the Mun.

Mayor

6,540.00

11/20/14 883715 DNT Sari-Sari Store Diesel, gasoline and oil for dump

truck used in the garbage

collection and in GSO

11,780.00

457,466.28

Total 736,869.78

Charges for labor were not supported by accomplishment reports while

fuel (diesel) expenses for heavy equipment were not supported by fuel and

equipment utilization reports showing that these expenditures were fully

utilized/ incurred in the project implementation.

Moreover, items totaling to P457,466.28 were charged to the project

even though these were not included in the approved Program of Works and

Detailed Estimates.

There were also no detailed plans/drawings; documentation of

reference points of road rehabilitation/maintenance and photographs taken

before, during and after project implementation evidencing project

accomplishments and justifying reasonableness of expenditures on the

project.

The Citizen Participatory Audit (CPA) team conducted project inspection

on February 10, 2015 together with Mr. Angelo R. Villegas, Meter Reader I,

staff in the Office of the Municipal Engineer. The municipal engineer was not

around despite prior commitment to be available in the project inspection.

The municipal mayor assigned Mr. Villegas to assist/guide the CPA team.

The actual length of the project measured 28 km only, short of 5 km as

compared to 33 km identified in the program of works. With the Parola as

reference Sta. 0+000, the following road conditions were noted by the

technical audit specialist in the team:

57

0.0 km – 2.0 km Existing concrete road

2.0 km – 7.85 km Existing damaged asphalt road

7.85 km – 8.46 km Concrete road with a width of 5.0m

9.0 km – 9.34 km Concrete road with a width of 5.0m, shoulder of 1.40m and 1.80m

9.34 km – 16.74 km Gravel road, graded with a width of 6.60m to 9.40m

16.74 km – 16.79 km Concrete road with shoulder of 2.20m and 2.70m

16.88 km – 16.95 km Concrete road with shoulder of 1.80m and 2.10m

17.0 km – 25.0 km Gravel road, graded, with a width from 5.40m to 7.84m

25.0 km – 26.0 km 6.30m damaged earth road with about 20.0 m long earth

displacement as deep as 1.0m

26.0 km – 28.0 km 5.40m to 6.0m earth road, no signs of improvement/rehabilitation

between 0 km – 2.0 km, existing concrete road

between 2.0 km – 7.85 km, existing damaged asphalt road

58

7.85 km – 9.34 km concrete road 9.34 km – 16.74 km gravel road

between 17.0 km – 25.0 km, gravel road

between 25.0 km – 26.0 km, damaged earth road

59

Between 26.0 km – 28.0 km, earth road

7.2.3. Construction of Nalbot-Old Guinlo Road Phase I and II, Bgy. Poblacion – Old


7.2.3.1. The FMR So. Nalbot to Barangay Old Guinlo has various defects, thus, requiring additional costs for repairs to the government.

During our ocular inspection the Team noted the various defects:

Bridge No. 3 was still incomplete and not yet passable at the time of inspection. As explained by the Municipal Engineer, the lumbers that were supposed to be in the construction were confiscated by Palawan Council for Sustainable Development (PCSD) allegedly illegally cut from the forest.

60

Figure No. 1. Bridge No. 3

Latitude 10°50'23.16"N

Longitude 119°27'40.09"E

Bridge No. 4, a one-span bridge were constructed outside the road location and not yet passable because they have no approaches and riprap protection.

Figure No. 2. Bridge No. 4



61

Road project has no more visible ditch due to siltation and uncontrolled growing of vegetation.

Figure No. 3. Uncontrolled Growing of Vegetation



Most of the Reinforced Concrete Pipe Culvert (RCPC) installed were in the wrong elevations and stations since the same were installed without road cross-section. The installed RCPC of various sizes could not perfectly serve the purpose of diverting the flood water from one side of the road to the other side.

Figure No. 4.Reinforced Concrete Pipe Culverts



62

Some sections of the road has damaged embankment including the headwalls of the RCPC which were already detached from the pipes.

Figure No. 5. Damaged Embankment



Sources of materials were obtained from quarry sites located near or along the road stretch and were not approved by the DPWH or Provincial Engineer’s Office of Palawan.

Figure 6



63

There were oversized stones on the road bed, loose materials, potholes and presence of muck and other unsuitable materials.

Figure No. 7. Visibly Oversized Stones



Cutting of slope is so steep that there is a tendency of possible landslides in some section of the road stretch.

7.2.3.2. The FMR project has no detailed engineering.

Annex “A” of the Revised IRR of RA 9184 provides that, “No program of

work for any project shall be approved without detailed engineering.”

As stated in Paragraph 2 of Annex “A” of the said IRR, a schedule of

detailed engineering activities shall include the following:

a) Survey b) Site investigation c) Soils and foundation investigation d) Construction materials investigation e) Preparation of design plans f) Preparation of technical specifications g) Preparation of quantity and cost estimates h) Preparation of program of work i) Preparation of proposed construction schedule (and estimated cash flow

for projects with schedule over six (6) months)

64

j) Preparation of site or Right-of-Way (ROW) Plans including schedule of acquisition

k) Preparation of utility relocation plan l) Preparation and submission of Design Report m) Environment Impact and Statement for critical project as defined by the

Department of Environment and Natural Resources (DENR) n) Preparation of minimum requirements for a Construction Safety and

health Program for the project being considered

Inquiry with the Municipal Engineer disclosed that the entire FMR

project has no detailed plans and specification, no survey plan, no soil

testing, no investigation as to the riverflow and the identification of flood-

prone and landslide-prone areas. They prepare program of work according

to the allotted fund of the particular year.

7.2.3.3. The reasonableness of the actual cost in the construction of the FMR project could not be validated.

Our audit covers works undertaken for Calendar Years (CY) 2012 and

2013 with corresponding appropriations of P2,000,000 and P1,000,000,

respectively. For CY 2012, it covers the construction of three (3) units one-

span timber bridge, installation/construction of 370 pcs. 10mm diameter x

.6meter RCPC and road grading, gravelling and re-shaping. For CY 2013, it

covers the construction of one (1) unit two-span timber bridge and road

grading, gravelling and re-shaping.

The construction of FMR project has an estimated length of 4.566 km.

and 1.522 km for the P2,000,000 and P1,000,000 programmed projects,

respectively, It has an average width of 6.50 to 7.00 meters as identified by

the Municipal Engineer.This project was undertaken by administration. All

the heavy and light equipment used in the project for quarrying and hauling

of construction materials are the property of the Municipality of Taytay and

free of rentals.

The Team conducted the actual measurement by using digital walking

measure and GEOTAGGING based on the pinpointed location as determined

by the Municipal Engineer. The Audit Team started about 100 meters away

from Palawan North National Highway as identified by the Municipal

Engineer. The Team, however, was unable to locate the exact location of the

beginning and the end of the project because there was no point of

reference or any identified station in the program of works. The results of the

65

Audit Team’s actual measurement using the walking measure were almost

the same as that of the results obtained from the geotagging technique.

Since there was no approved plan, road construction of the FMR

continued only up until the appropriated fund for that particular budgeted

period have been fully exhausted. The appropriated funds were utilized for

the procurement of timber for the construction of bridge and the fuel and

lubricants used by the equipment owned by the LGU.

7.2.3.4. The Team was unable to determine whether the actual work accomplishments are in accordance with the approved plans and specifications.

Our evaluation of the P2M andP1Mprojects lack the following

documents:

1. Approved Road plans, profile and cross section 2. Agency’s design standard 3. Approved bridge plans and all details 4. Sales invoice of all materials involved in the project 5. Delivery receipt of all materials in the project 6. Approved purchase order (PO) of all materials involved in the Bridge

project 7. Certificate of inspection and acceptance for roads and bridges 8. Approved materials source maps from the Provincial Engineering Office

and nearest DPWH District Office 9. Heavy and light equipment utilization report for CY 2012 – 2014 10. Municipal inventory report of existing light and heavy equipment 11. Construction schedule 12. Materials quality control test results 13. Photographs before, during and after construction per RA 6954

The whole FMR project is lacking the detailed engineering as

mentioned in Annex “A” of the Revised IRR of RA 9184.

In view of this, the Team was not able to validate the following:

1. The total work accomplishments of the subject project cannot be validated because there was no submitted statement of work accomplished (SWA)

2. The accomplishment made on the project cannot be validated as to compliance with plans and specifications because there is no approved plans and program of work.

66

3. The project cannot be validated whether the accomplishments was in accordance with the construction schedule because there is no PERT/CPM network diagram or construction schedule.

7.2.4. Reshaping/Road Embankment of Sitio Marirong-Cayasan in Bgy. Nicanor

Zabala, Roxas, Palawan

7.2.4.1. Sitio Marirong to Cayasan farm-to-market road (FMR) project was included in the Annual Investment Plan and Annual Budget of CY 2012. However, it was implemented only on January 08, 2015, thus incurring a three-year delay in the project.

Republic Act No. 7160, otherwise known as the Local Government Code

of 1991, provides that:

Section 18 - Power to Generate and Apply Resources. - Local

government units shall have the power and authority to establish

an organization that shall be responsible for the efficient and

effective implementation of their development plans, program

objectives and priorities; xxx

Section 444(b)(3) Duties of the Municipal Mayor: “Initiate

and maximize the generation of resources and revenues, and

apply the same to the implementation of development plans,

program objectives and priorities xxx

Section 476(b) Duties of the Planning and Development

Coordinator – (4) Monitor and evaluate the implementation of the

different development programs, projects, and activities in the

local government unit concerned in accordance with the approved

development plan.

Likewise, Item 5.0 of the Department of Interior and Local Government

(DILG)-Department of Budget and Management (DBM) Joint Memorandum

Circular (JMC) No. 2011-1 dated April 13, 2011 states that: “It is the

responsibility of every xxx Municipal Mayor xxx to ensure that the 20% of the

IRA is optimally utilized to help achieve desirable socio-economic

development and environmental outcomes. Xxx”

Included in the 2012 Annual Investment Plan of the Municipality of

Roxas is the Farm-to-Market Road (FMR) development of the Marirong road

to Cayasan falls of Barangay Nicanor Zabala, Roxas, Palawan. The said project

67

was also provided with an appropriation of P200,000.00 in the 2012 Annual

Budget under the 20% Development Fund (DF).

The Marirong road to Cayasan falls FMR project, being incorporated in

the AIP and Annual Budget, means that this was identified as one of the

priority projects which should have been implemented by the Municipality in

the budget year 2012. However, despite having available funds, the proposed

project remained unimplemented for three (3) years (2012-2014).

Further examination of the pertinent documents disclosed that the

Municipality already procured the needed fuel, oil and lubricants on January

20, 2014 but was not utilized until January 08, 2015, as per reports submitted

by the Municipal Engineer.

7.2.4.2. The program of works was not supported with detailed plans and specifications prior to implementation of the FMR project.



engineering.”




estimates, program of work (POW) and construction schedule.

On December 03, 2014, the Audit Team requested for the submission

of the copies of approved plans and specifications and POW with detailed

cost estimates. However, during that time, only the POW was made available

to the team since the detailed engineering plans and specifications were not

prepared prior to project implementation. Moreover, it was noted that the

POW did not specify the period/ inclusive dates of project implementation.

To support actual work done, the approved plans and specifications,

equipment utilization, and photographs of the project were only prepared

later on January 2015 and was submitted to the team on February 13, 2015.

68

7.2.4.3. Actual project implementation was not in accordance with the approved program of works.

Review of pertinent transaction documents revealed that the same

project has a previous different POW dated January 07, 2013 and the

description of works to be done are road reshaping, clearing and grubbing.

The project cost from the original POW amounted to P200,000.00, of

which P193,000.00 pertains to fuel, lubricants and spare parts and P7,000.00

is for other indirect costs. The entire P193,000.00 appropriations for the fuel,

oil and lubricants was not procured through public bidding as a single

transaction. Instead only the amount of P97,783.20 was procured on June

10, 2013 through small value procurement and this was utilized in road

reshaping and embankment of the 2.2 kms existing gravel road of Sitio

Marirong.

The remaining fuel requirement amounting to P 52,216.80 for the FMR

of Marirong-Cayasan project was included in the procurement of fuel and

lubricants through public bidding conducted on December 18, 2013. The

procured fuel and lubricants was delivered and accepted on January 20, 2014

and paid on February 25, 2014 yet the project was not immediately started.

Moreover, the description of works indicated in the POW of

P102,216.80 dated August 15, 2013 is road reshaping and embankment,

however ocular inspection conducted by the team revealed that the actual

work done was road opening.

69

7.2.4.4. The total work accomplished on the subject project cannot be validated because there was no submitted monitoring or accomplishment reports.

The following were noted from ocular inspection, actual measurement

and geotagging:

1. The road stretch is cleared from vegetations, excavated and uprooted

bamboos and trees of different varieties;

70

2. Backfilling materials as road embankment are visible along the road;

3. The road width measurement was recorded resulting in variable widths of 4.0m to 7.8m;

71

4. There was visible rock excavation at side slope for around 100 meters; and

72

5. Actual measurement of the length and geotagging was recorded to have a total length of 1.24km as against the submitted sketch showing a 1.00km length.

7.2.4.5. The results of interview and ocular inspection showed that the FMR project

was not strategically located near key production area of valuable crops and other agricultural products.

The subject FMR project started at a point along Marirong road going to

Cayasan Falls, a potential tourist destination in Barangay Nicanor Zabala,

Roxas which the local government plans to develop/improve.

Based on the location map submitted by the Municipal Planning and

Development Office (MPDO) and Municipal Engineering Office (MEO), the

development made to Marirong road and the opening of road to Cayasan

Falls is actually in connection with the proposed construction of Bgy. Nicanor

Zabala Tourism Road.

The beneficiaries interviewed, all local farmers, gave mostly negative

responses on the project since the FMR implemented in their barangay was

not located on a key production area of valuable crops such as rice, corn and

other high value commercial crops, livestocks and fisheries.

In addition, local farmers found that the location and design of the FMR

project was not safe and convenient to transport agricultural products

because the project was situated in a mountainous area with steep slopes.

73

7.2.5. Maintenance of Iniaran Farm to Market Road, Bgy. Labog, Sofronio Espanola,

Palawan

7.2.5.1. Maintenance of Labog – Iniaran FMR was included in the agency’s 2014 Annual Investment Plan (AIP) and was provided an appropriation of P75,000.00. Cost incurred in implementing the project totaling P56.822.65 is within the appropriated amount.

The Annual Investment Plan (AIP) of the Municipality of Sofronio, Espanola for C.Y. 2014 included the Maintenance of 4.8 kilometers Labog – Iniaran FMR under Reference Code Number 8000-5-153 with an estimated amount of ₱150,000. The project was incorporated in the Annual Budget for C.Y. 2014 and was provided with ₱75,000.00 appropriation under the 20% Development Fund.

Cost incurred on the project totaled ₱56,822.65 as follows:

Reference Payee Particulars Amount

Fuel, Oil and Lubricant

JEV No. 10-14-04-0912

Pulot Petron Station

Payment for fuel and lubricants used for Labog Iniaran FMR

6,331.90

JEV No. 10-14-04-1066

Herenzo Gasoline Station


6,532.00

JEV No. 10-14-05-1244



32,370.00

JEV No. 10-14-06-1615



3,014.75

JEV No. 10-15-01-0113-1

Uno Commercial Payment for fuel and lubricants used for Labog Iniaran FMR

2,574.00

Sub-total 50,822.65

Vegetation Control

JEV No. 10-14-06-1542

Gerry Ganusa, et al

Payment of vegetation control of Labog Iniaran FMR

6,000.00

Total: 56,822.65

The foregoing data show that disbursements made during the year did not exceed the amount of fund appropriation, in compliance with Section 305(a) of R.A. 7160 which states that: “No money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law”.

74

7.2.5.2. The program of work of Iniaran FMR was not supported by detailed engineering plans specifying the portion/s of the road for gravelling or patching, equipment utilization and project implementation schedules, thus reasonableness of the quantity and cost estimates and compliance of accomplishments with plans and specifications and schedule cannot be validated.


program of work for any project shall be approved without detailed engineering.”


shall include, among others, the conduct of survey and site investigation and preparation of design plans, technical specifications, quantity and cost estimates, program of work and construction schedule.


project implementation. There were no detailed plans identifying the locations/stations to be patched within the 4.8 kilometers (Iniaran) stretch of roads. There were also no supporting equipment utilization schedules. Thus, reasonableness of the quantity and cost estimates of materials and fuel as well as compliance of accomplishments with plans, specifications and project implementation schedule cannot be validated.

7.2.5.3. There was no monitoring or accomplishment reports, reference points and

photographs documenting the implementation of the road maintenance project, thus the total project accomplishment and the reasonableness of quantity and cost of materials based on actual accomplishment cannot be validated.

The submitted Program of Work for the maintenance of the 4.8

kilometers of Labog-Iniaran FMR did not specify the scope of works involved. As of year-end, the Office of the Municipal Engineer reported that the road maintenance project was 100% implemented. There were no monitoring or accomplishment reports on the project, documentation of reference points where gravel patch was made and photographs taken before, during and after project implementation. There were also no fuel consumption report and equipment utilization report supporting the expenditures for fuel.

The actual accomplishments were no longer fully visible at the time of

inspection conducted by the CPA team on January 22, 2015. Still, the technical audit specialist in the team noted the following:

75

1. The conditions of the graveled sections from Sta.0 + 110 to Sta. 5+000 were almost the same except for some potholes observed at Sta.0 + 801 and Sta. 0 + 867.

Taken at Sta.0+ 867. Latitude: 9° 3'31.00"N; Longitude : 118° 4'3.00"E

2. Road shoulders on both sides of the graveled road were already covered

with vegetation. There were no longer traces of cut/trimmed foliage found when the team arrived.

Latitude: 9° 3'36.00"N ; Longitude : 118° 4'26.00"E

3. There was impounding of water observed at Sta.0 + 801.

Latitude: 9° 3'31.00"N ; Longitude : 118° 4'1.00"E

Due to lack of accomplishment reports, reference points of road re-

gravelling, photographs, fuel and equipment utilization reports, the total

76

project accomplishment and the reasonableness of quantity and cost of materials based on actual accomplishment can no longer be validated.

7.2.5.4. Purchases of various items totaling to P 5,175.65 were charged to the

project contrary to its approved Program of Works:

The Approved Program of Work (POW) for the Maintenance of Labor Iniaran FMR showed the following cost breakdown:

1) Vegetation Control (5 laborers, 9 man days @ 200.00) ₱6,000.00 2) Fuel, Oil and Lubricants

a.) Fuel (1,118 liters @ P55) 61,490.00 b.) Oil and Lubricants (lump-sum) 5,010.00

3) Road Right of Way: 2,500.00

TOTAL ₱75,000.00

Verification of the submitted transaction documents showed that

various items totaling P5,175.65 that were not included in the POW and detailed estimates were procured and charged to the project. Details are as follows:

Check # Check Date

Payee Particulars Amount

408043 4/10/14 Pulot Petron Station

10 ltrs diesel, service to hotspring (owner) P579.50 8 ltrs diesel, service to LabogIniaran hotspring (owner) P458.40

₱1,037.90

408222 4/30/14 Herenzo Gas Station

2 ltrs unleaded Gasoline, motorpool Service for Iniaran Project, hotspring (motorcycle) P136.00 3 ltrs unleaded Gasoline, service to Hotspring (motocycle) 204.00 10 ltrs diesel, service to inspect Iniaran project (delica) 579.00 3 ltrs unleaded gasoline, Service to Iniaran (delica) 204.00

1,123.00

408707 6/27/14 Herenzo 45 ltrs diesel, hauling 3,014.75

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Check # Check Date

Payee Particulars Amount

Gas Station

Of gravel and sand for Iniaran Elementary School (10WDT) P3,014.75

Total P 5,175.65

7.2.6. Maintenance of Kanangkaan Farm to Market Road, Bgy. Punang, Sofronio

Espanola, Palawan

7.2.6.1. Maintenance of Kanangkaan – Punang FMR was included in the agency’s 2014 Annual Investment Plan (AIP) and was provided an appropriation of P75,000.00. Cost incurred in implementing the project totaling P68,483.00 was within the appropriated amount.

The Annual Investment Plan (AIP) of the Municipality of Sofronio,

Espanola for C.Y. 2014 included the Maintenance of 3.7 kilometers Punang-Kanangkaan FMR under Reference Code Number 8000-5-154 with an estimated amount of P300,000.00. The project was incorporated in the Annual Budget for C.Y. 2014 and was provided with P75,000.00 appropriation under the 20% Development Fund.

Cost incurred on the project totaled P 68,483.00 as follows:

Reference Payee Particulars Amount

Fuel, Oil and Lubricant

JEV No. 10-14-05-1244


Payment for fuel and lubricants used for Kanangkaan FMR

1,164.00

JEV No. 10-14-12-3455



7,175.64

JEV No. 10-15-01-0108



17,493.04

JEV No. 10-15-01-0108



33,650.32

Sub-total 59,483.00

Vegetation Control

JEV No. 10-15-01-0108

Tejada, et al Payment of vegetation control of Kanangkaan FMR

P9,000.00

Total: 68,483.00

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The foregoing data show that disbursements made during the year did not exceed the amount of fund appropriation, in compliance with Section 305(a) of R.A. 7160 which states that: “No money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law”.

7.2.6.2. There was no monitoring or accomplishment reports, reference points and

photographs documenting the implementation of the road maintenance project, thus the total project accomplishment and the reasonableness of quantity and cost of materials based on actual accomplishment cannot be validated.

The submitted Program of Work for the maintenance of the 3.7

kilometers Kanangkaan-Punang FMR did not specify the scope of works involved. As of year-end, the Office of the Municipal Engineer reported that the road maintenance project was 100% implemented. There were no monitoring or accomplishment reports on the project, documentation of reference points where gravel patch was made and photographs taken before, during and after project implementation. There were also no fuel consumption report and equipment utilization report supporting the expenditures for fuel.

The actual accomplishments were no longer fully visible at the time of

inspection conducted by the CPA Team on January 22, 2015. Still, the technical audit specialist in the Team noted the following:

1. There were newly re-shaped section of Kanangkaan road at Sta.2 + 230 2. Road shoulders on both sides of the graveled road were already covered

with vegetation. There were no longer traces of cut/trimmed foliage found when the team arrived.

3. There were potholes and impounding of water observed at various sections of the Kanangkaan FMR

Due to lack of accomplishment reports, reference points of road re-

gravelling, photographs, fuel and equipment utilization reports, the total project accomplishment and the reasonableness of quantity and cost of materials based on actual accomplishment can no longer be validated.

7.2.6.3. Purchases of various items totaling to P 5,175.65 were charged to the

project contrary to its approved Program of Works: The Approved Program of Work (POW) for the Maintenance of

Kanangkaan FMR showed the following cost breakdown:

1) Vegetation Control (5 laborers, 9 man days @ 200.00): P 9,000.00 2) Fuel, Oil and Lubricants 63,500.00 3) Road Right of Way: 2,500.00 TOTAL: P75,000.00

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Verification of the submitted transaction documents showed that

various items totaling P7,628.68 that were not included in the POW were procured and charged to the project. Details are as follows:

Check # Check Date Payee Particulars Amount


2 ltrs unleaded Gasoline, inspection of Project (motorcycle) P118.34 15 ltrs unleaded Gasoline, inspection of Kanangkaan and Hotsping (revo) 887.55 50 ltrs diesel, inspection of various roads and bridges (adventure) 2,401.00 15 ltrs diesel, inspection of Labog hotspring (revo) 887.55 30 ltrs diesel, inspection of Bgy roads at abo-abo (adventure) 1,440.60 30 ltrs diesel, clearing in Slaughterhouse road (grader) 1,440.60

P7,175.64


3 ltrs unleaded gasoline, Supervision of projects (motorcycle) 174.78 1 lt unleaded gasoline And ultron, supervision of Projects (motorcycle) 278.26

453.04

Total P 7,628.68

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7.2.6.4. The program of work of Kanangkaan FMR was not supported by detailed engineering plans specifying the portion/s of the road for gravelling or patching, equipment utilization and project implementation schedules, thus reasonableness of the quantity and cost estimates and compliance of accomplishments with plans and specifications and schedule cannot be validated.


program of work for any project shall be approved without detailed engineering.”


shall include, among others, the conduct of survey and site investigation and preparation of design plans, technical specifications, quantity and cost estimates, program of work and construction schedule.


project implementation. There are no detailed plans identifying the locations/stations to be patched within 3.7 kilometers (Kanangkaan) stretch of roads. There were also no supporting equipment utilization schedules. Thus, reasonableness of the quantity and cost estimates of materials and fuel as well as compliance of accomplishments with plans, specifications and project implementation schedule cannot be validated.

7.2.7. Improvement and Rehabilitation of Bgy. Kalatagbak, Quezon, Palawan

7.2.7.1. The Improvement and Rehabilitation of 5 Kilometers Brgy. Kalatagbak Farm

to Market Road (FMR) were not in accordance with the provisions of

Appendix I of Republic Act (RA) 9184 or GPPB Resolution No. 018-2006

dated December 6, 2006. Likewise, disbursements for Fuel, Oil and

Lubricants amounting to P146,594.50 had overlapping consumptions.

Review of the related documents on the implementation of 5

kilometers Brgy. Kalatagbak FMR revealed that the Agency did not prepare a

Detailed Engineering Plan and Specification. The Agency furnished the Audit

team with the Design and Specification of the KALAHI-CIDSS road

construction project that was not part of the FMR project. Confirmation with

the concerned Agency personnel revealed that the FMR project was

requested by the KALAHI-CIDSS as access road so that the heavy equipment

to be used in KALAHI-CIDSS project can easily reach the road construction

location.

The project, which is implemented “By Administration”, was not listed

among the projects to be undertaken in the Annual Procurement Plan (APP)

contrary to Section 3.1 of GPPB Resolution No. 018-2006 dated, December 6,

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2006 on the conditions and requirement for the use of “By Administration”

which provides that “Projects undertaken by Administration shall be included

in the approved Annual Procurement Plan (APP) of the procuring entity

concerned.”

7.2.7.2. Procurement of fuel, oil and lubricants by the Agency was done through

shopping. Although, the amount of each purchase orders does not exceed

the threshold limit of ₱100,000.00 for the 1st class Municipality, the Agency

still violates Section 54.1 of RA No. 9184 on Splitting of Contracts which

states that:

Splitting of Government Contracts is not allowed. Splitting of

Government Contracts means the division or breaking up of GOP

contracts into smaller quantities and amounts, or dividing contract

implementation into artificial phases or sub-contracts for the purpose

of evading or circumventing the requirements of law and this IRR,

especially the necessity of public bidding and the requirements for the

alternative methods of procurement.

7.2.7.3. The procurement of fuel, oil and lubricants should have been done thru

public bidding since its purpose was only for the Brgy. Kalatagbak FMR. The

Agency divided the procurement into different purchase orders which

resulted in the splitting of contract. This mode of procurement is

disadvantageous on the part of the Government in terms of bulk purchase

discount and lowest competitive price.

Further review of disbursement vouchers (DV) and its supporting

documents disclosed that there were deemed multiple fuel, oil and

lubricants charges made for certain heavy equipments that were used for the

same operating day. Based on the Fuel/Oil Withdrawal Slip and Billing

Statement, there were charges for the same heavy equipment that were

withdrawn the same operating day but charged to different Disbursement

Vouchers amounting to P146,594.50 (see Appendix 6). For instance, fuel, oil

and lubricants of Dump Truck 5 (DT5) withdrawn on May 28, 2014 were

charged separately to DV No. 20-127, 20-133, & 20-134. It was not likely for

DT5 to withdraw fuel and refuel for the same operating day from the project

location to Gasoline station and vice versa since the project location is 22kms

away where the gasoline station is located. Moreover, the billing statement

from the supplier were separately prepared, instead of including all fuel, oil

and lubricants withdrawn for a certain period, the supplier divided the billing

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statement per heavy equipment group which resulted to overlapping billing

periods. This raised doubts on excessive charging of fuel, oil, and lubricants.

The foregoing deficiencies showed that the Agency has not properly

managed and effectively controlled the use of fuel, resulting in possible

substantial losses due to misuse or abuse. In effect, the costs of fuel

consumption totaling P146,594.50 for this project were doubtful because of

the above-noted deficiencies.

7.2.7.4. Technical evaluation of work accomplishment and programmed work could

not be made due to the absence of the documentary requirements cited

under COA Memorandum No. 2005-027 and COA-Circular No. 2012-001

dated June 14, 2012.

COA Circular No. 2012-001 dated June 14, 2012 provides the list of

documentary requirements for common government transactions and COA

Memorandum 2005-027 provides the documentary requirements for the

evaluation of the technical aspect of all government contracts and inspection

of government projects.

Upon submission, the aforementioned documents it shall be reviewed

by the Auditor to evaluate compliance with the requirements of applicable

laws, rules and regulations and completeness of documentary requirements.

Such contracts shall then be forwarded to the assigned Technical Audit

Specialist for technical review whenever necessary.

Verification of records showed that the management has not submitted

the following documents which were essential to the technical evaluation of

work accomplishment and programmed work:

1. Approved Road plans with Typical road cross section;

2. Delivery Receipt and Sales Invoice of all materials involved in the

project;

3. Certificate of Inspection and Acceptance for the road;

4. Approved Materials Source Maps from the Provincial Engineering Office

and nearest DPWH District Office;

5. Heavy and Light Equipment Utilization Report for CY 2012-CY2014;

6. Municipal Inventory Report of Existing Light and Heavy Equipment;

7. Construction Schedule;

8. Material Quality Control Test Results;

9. Photographs before, during and after construction per RA 6954.

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7.2.8. Regravelling of Sitio Mati and Paratungon roads, Barangay Pangobilian,


Road Maintenance/Re-graveling in Barangay Pangobilian, Brooke’s Point, Palawan, with a project cost of ₱200,000.00 implemented by administration

There were deficiencies noted during the conduct of audit on the project

“road maintenance/re-graveling of 3.24 km farm-to-market road (FMR)”

implemented by administration at Barangay Pangobilian.

7.2.8.1. Road maintenance projects for farm-to-market roads such as re-

graveling offer short-term improvement on road conditions and

require routine upkeep/rehabilitation.

A Citizen Participatory Audit (CPA) was conducted on the road

maintenance/re-graveling of the 3.24 km farm-to-market road (FMR)

project implemented by administration at Barangay Pangobilian,

Brooke’s Point, Palawan. The Municipality appropriated the amount

of ₱200,000.00 for the said road maintenance under the 20%

Development Fund for CY 2013, wherein ₱60,300.00 was allocated for

equipment rental and ₱139,700.00 for fuel requirement in ditching,

crowning, hauling and spreading of 810m3 sub-base coarse

aggregates over the 3.24km stretch of road.

The re-graveling project was undertaken in March 2014 at two

(2) separate locations in Barangay Pangobilian – Sitio Paratungon and

Sito Mati. The total actual cost incurred in implementing the project

amounted only to ₱138,765.00 for the purchase of 2,523 liters of

diesel fuel because the equipment used such as road grader, pay

loader, dump truck are owned by the Municipality.

The CPA Team conducted an ocular inspection on the project

sites on February 2-3, 2015 and observed that spot re-graveling was

undertaken instead of re-graveling the entire road section. The team

further noted the following:

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While gravel materials were still visible in some areas, portions

have been displaced from the surface to the shoulder area

Gravel surface has started to erode

85

The roadbed gravel has no aggregate binder

86

Road shoulders and ditches were already covered by vegetation

Not all aggregates have undergone road grading/compacting

resulting in uneven and rough surface

87

Areas without gravel due to spot re-gravelling

88

The foregoing observations noted during the ocular inspection

conducted within a year after implementation only show that road re-

graveling projects provide short-term improvement on the road

condition. And compared to concrete, gravel roads require frequent

and routine maintenance or rehabilitation, especially after rainy

season. Thus, road maintenance projects may prove to be costly in

the long run and less beneficial to farmers and constituents alike.

89

7.2.8.2. The total project accomplishment and the reasonableness of the

actual quantity of fuel consumed could not be fully validated due to

the absence of monitoring or accomplishment reports, photographs

documenting the implementation of the road maintenance project

and the limited scope of the ocular inspection conducted.

The Municipality procured 2,523 liters of diesel fuel based on

the 810m3 sub-base coarse aggregates indicated in the Bill of

Materials and Cost Estimates. As reported in the fuel consumption

report, only 2,470 liters of fuel was actually used for re-graveling,

reshaping, ditching and hauling the aggregates from the quarry site to

the farm-to-market roads at Sitio Mati and Sitio Paratungon with

distances from the quarry site of 5.45 km and 5.98 km, respectively as

geotagged by the team.

However, given that the improvements on the project sites

were no longer fully visible almost a year after implementation which

limited the scope of the ocular inspection conducted, thus, it could

not be ascertained whether the Municipality actually used the entire

810m3 of sub-base coarse aggregates on the 3.24 km stretch of farm-

to-market roads as planned. The actual quantity of aggregates used is

relevant in validating the actual fuel consumption on hauling and re-

graveling. Moreover, there was no monitoring or accomplishment

report and photographs taken before, during and after the

implementation of the FMR project.

In the absence of such documents and the limited scope of the

inspection, the total project accomplishment and the reasonableness

of the quantity of fuel used could not be validated.


8.1.1. Concreting of Kamuning Kamuning Road Phase II, Barangay Kamuning,

Puerto Princesa City, Palawan

8.1.1.1. On the issue of the construction deficiencies noted during the actual

inspection conducted by the Audit Team, it was noted that the total

deficiency amounting to ₱2,082,277.23 based on the initial findings

gathered from geotagging that need to be rectified by the contractor.

The duration on the repair of the noted deficiencies resulted to

inconvenience in the use of the project.

8.0 AUDIT CONCLUSION

90

8.1.1.2. On the issue of extended construction period without necessary

documentation such as suspension/extension of work orders, the

Audit Team determined that there were no documents submitted to

the Team that may be proved that the proper authority for the

approval of the extension of construction period.


The Inogbong Seashore Road concreting project provided a convenient transport of agricultural and fishery products. However, the safety and service of the road could be compromised if the defects noted would not be addressed immediately.

The compliance of the actual/reported accomplishments with the

approved plans and specifications could not be fully validated due to the absence of as-built plan. Other deficiencies noted in the auditorial review likewise showed non-compliance with RA 9184 and RA 7160.


Palawan

Overall, the audited Farm-to-Market Road (FMR) projects have attained their objective of providing efficient and effective transport of agricultural and fishery products from within the production areas into the nearest existing roadway systems and thereby improved the living conditions and promoted economic activities in the vicinity of the project.





The maintenance projects failed to provide long-term improvement of

road conditions for safe and convenient transport of agricultural products.



The FMR project which is the opening of road from So. Nalbot to

Barangay Old Guinlowhichstarted in year 2010, is approximately 16 kilometers

long. This FMR is the most accessible and shortest route to the Malampaya,

thus, providing easier market access in transporting farm and marine products

from Barangay Old Guinlo and its neighboring barangays to Poblacion,Taytay.

The project, however, was found to be not in compliance with the

Revised IRR of R.A. 9184.

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The road failed to provide for safe and convenient transport of

agricultural products because the project has steep slopes and is not

strategically located near production areas.


Palawan


Espanola, Palawan


Overall, the audited Farm-to-Market Road (FMR) projects have attained their objective of providing efficient and effective transport of agricultural and fishery products from within the production areas into the nearest existing roadway systems and thereby improved the living conditions and promoted economic activities in the vicinity of the project.



Road re-graveling projects do not provide long-term improvement of

road conditions for safe and convenient transport of agricultural products.




9.1.1.1. Immediately determine the liabilities of the responsible party/person(s) for the defects and implement the necessary measures/corrections/remedies in accordance with laws, rules and regulations, to correct the defects;

9.1.1.2. Conduct tests of the materials and workmanship of the projects to

ensure that the works are done in accordance with the requirements of the contract or in accordance with specifications;

9.1.1.3. Exercise diligent monitoring and supervision of the implementation of the project to ensure that only those projects done in accordance with the requirements of the contract are accepted and paid;

9.0 RECOMMENDATIONS FOR EXECUTIVE ACTION

92

9.1.1.4. Conduct evaluation and monitoring on the performance and conditions of the structures constructed to ensure that corrective measures could immediately be taken for defective structures; and/or for consideration in the conduct of the detailed engineering, such as in the preparation of specifications, etc.

9.1.1.5. Conduct eight (8) random coring test of the concrete pavement together with the Audit Team.


9.1.2.1. The defects noted in the audit results be addressed immediately and require the contractor, E.C. Timbancaya Enterprises, to undertake the necessary actions to rectify defects. Otherwise, the performance security posted shall be forfeited, and the contractor shall be perpetually disqualified from participating in any public bidding.

9.1.2.2. The Municipal Budget Office be made to explain the discrepancy

between Obligation Requests attached to the disbursements and the reported Status of Appropriations, Allotments, Obligations and Balances pertaining to the Continuing Appropriations of the 20% Development Fund allocation for the subject project.

9.1.2.3. The contractor be required to pay the liquidated damages.

9.1.2.4. The contractor be required to submit the As-Built Plan and Clearance from the Provincial Treasurer that the corresponding sand and gravel fees have been paid.

9.1.2.5. Final acceptance of infrastructure projects shall be made one year after the project completion.

9.1.2.6. All contract agreements be meticulously reviewed or scrutinize as to

the correctness and completeness of contents, terms and conditions

prior to signing by contracting parties.


Palawan

We recommended that the contractor should strictly follow the provision on contract period in execution of the project. Henceforth, the management should monitor all project implementation schedules and ensure strict adherence to the provisions of the Revised Implementing Rules and Regulations of Republic Act No. 9184.

93

We also recommended that the management should cause the

contractor to make immediate rectification of the aforementioned defects to

avoid further damage to the road project. De-clogging of the opening of the

RCBC will help the free flow of water thru the RCBC and repair of the wing wall

and putting embankment on the damage road approached will lengthen its

years of usage. Henceforth, the management should monitor all infrastructure

projects to ensure conformance with their detailed engineering plans and

specifications.



9.2.1.1. Appropriate funds instead for the Concreting of Loblob-Calitang Road

seeing that the road is being used on a regular basis and that road

reshaping and re-gravelling offers no long term improvement on its

condition;

9.2.1.2. Ensure that no infrastructure projects shall be undertaken without

the required detailed engineering investigations, surveys and plans;

and

9.2.1.3. Monitor, prepare a report on and document project

accomplishments.



9.2.2.1. Appropriate funds for concreting of roads instead of road

rehabilitation since maintenance projects offer no long term

improvement on road conditions;



and

9.2.2.3. Monitor, prepare and submit a report on project accomplishments

duly supported by equipment and fuel utilization reports and

photographs taken before, during and after project implementation.



94

9.2.3.1. Since the FMR project is still on-going and opening of road only, the LGU should conduct detailed engineering before any construction should be made.

9.2.3.2. The LGU should look for an alternative lumber to finish the bridge No. 4. Total log ban was already imposed in the entire province it is difficult to purchase such kind of hardwood “Ipil” and sizes in any registered lumberyard.

9.2.3.3. Since the construction of the FMR project was undertaken on phase by phase, the program of work should indicate the work to be accomplished in the particular budgeted year.

9.2.3.4. The LGU should ensure the continuity of the fund provided to the project.



9.2.4.1. Appropriate funds for concreting of roads instead of road reshaping

and gravelling since maintenance projects offer no long term

improvement on road conditions;



and

9.2.4.3. Monitor and prepare a report on project accomplishments duly

supported by equipment and fuel utilization reports and photographs

taken before, during and after project implementation.


Palawan

9.2.5.1. Appropriate funds for the concreting of farm-to-market roads instead of road maintenance projects in accordance with DPWH Department Order No. 11 to provide long-term benefits to the constituents

9.2.5.2. Prior to implementation of projects by administration, the LGU should

prepare Program of Work duly supported by the Plans and Specification as required activities of the detailed engineering of Annex “A” of the Revised IRR of RA 9184.Moreover, submission of accomplishment reports, reference points of road re-gravelling, photographs, fuel and equipment utilization reports should be submitted to validate the total project accomplishment and the reasonableness of quantity and cost of materials of the projects.

95


Espanola, Palawan

9.2.6.1. Appropriate funds for the concreting of farm-to-market roads instead of road maintenance projects in accordance with DPWH Department Order No. 11 to provide long-term benefits to the constituents

9.2.6.2. Prior to implementation of projects by administration, the LGU should

prepare Program of Work duly supported by the Plans and Specification as required activities of the detailed engineering of Annex “A” of the Revised IRR of RA 9184.Moreover, submission of accomplishment reports, reference points of road re-gravelling, photographs, fuel and equipment utilization reports should be submitted to validate the total project accomplishment and the reasonableness of quantity and cost of materials of the projects.


9.2.7.1. Strictly adhere with the provisions set forth under GPPB Resolution No. 018-2006, dated December 6, 2006 in all projects to be undertaken By Administration;

9.2.7.2. Strictly comply with the provisions of R.A. No. 9184 in all government procurement; and

9.2.7.3. Instruct the ICO-Municipal Accountant to carefully review the vouchers’ supporting documents.

We recommended further that the management should cause immediate

submission of the documents identified herein and henceforth ensure strict

adherence with COA Memorandum No. 2005-027, COA-Circular No. 2009-001

and COA-Circular No. 2012-001.



9.2.8.1. Appropriate funds for the concreting of farm-to-market roads instead

of road maintenance projects in accordance with DPWH Department

Order No 11 s. 2014 dated February 03, 2014; and

9.2.8.2. Monitor and prepare a report on project accomplishments duly

supported by equipment and fuel utilization reports and photographs

taken before, during and after project implementation.

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The Local Chief Executive issued Memorandum Order No. 48 and 49 dated March 13, 2015 to the City Inspectorate Team of the City Engineering Office to strictly comply with the Audit Observation Memorandum No. 2015-005 (2014) dated February 18, 2015.

The City Engineering Office Inspectorate Team conducted site inspection

on April 7, 2015, upon the request of the contractor for the final billing and in compliance with the Memorandum Order No. 48 of the City Mayor with the following comments:

10.1.1.1. The program of works indicated two sets of 24” RCCP Drainage

when only one set was installed. The other set of unit was

converted to additional concrete pavement on the Y-intersection at

the entrance portion of the road project from the national highway;

10.1.1.2. Cracks along some blocks that are reported have already been

repaired with substantial material such as concrete epoxy and

asphalt sealant;

10.1.1.3. Pavement shoulder have already been replaced by the approved

aggregates with the required 1.00 meter width;

10.1.1.4. Visible rocks on the surface have been removed with the proper

procedure and replaced with concrete filling;

10.1.1.5. Peeling, scaling and other defects had been repaired accordingly;

10.1.1.6. Portions that are subjected to be “removed and replaced” had been

replaced, some of the remains are still on site; and

10.1.1.7. The bunk house was not visible (only portions remains) when the

COA Team visited the project site on January 2015, because the

project break camp on December 2014, and came back on January

to conduct the sealing of joints and other repairs instructed by the

City Inspectorate Team.

10.0 AUDITEE’S COMMENTS

97


The management has not yet commented on the audit observations.


Palawan

In response to the audit observations on the Improvement of Malatgao-

Culandanum-Panas-Linao Road, Bataraza, the Provincial Government of

Palawan provided the following comments:

It is indeed unfortunate that the contractor incurred

substantial delay in the implementation of the project. For such reason, please be advised that the proper liquidated damages has been imposed and the same was deducted and/or withheld from the claim for the 10% retention as per Disbursement Voucher No. 14-03-00316.

Furthermore, as per your advice, we have made it the policy of

our office to strictly monitor all project implementation to avoid any unnecessary or unreasonable delay in the completion of the project ant that repeated delay should warrant the blacklisting of the contractor involved.

The project was declared completed and accepted by the

barangay LGU and Municipal Mayor of Bataraza last January 8, 2014. Unfortunately, at the time of inspection last January 27, 2015, the project was already beyond the responsibility of the contractor.

Moreover, as much as we wanted to do repairs based on your

findings, we could no longer do it since DPWH 2nd District already took over the maintenance of the said road as part of the circumferential road they are constructing in the area.

Rest assured that the said concern will be coordinated with

DPWH office to ensure that necessary repairs will be executed.




98






Management remarked that the observations and recommendations are

highly appreciated and assured that proper diligence will be exercised in truly

putting into practice the audit recommendations.




10.2.5. Maintenance of Iniaran Farm to Market Road, Bgy. Labog, Sofronio

Espanola, Palawan



Espanola, Palawan



For the Improvement and Rehabilitation of FMR in Brgy. Kalatagbak, the

Municipal Government of Quezon provided the following comments:

The FMR project was some sort of an intervening activity

resulting from the need to rehabilitate to enable the passage of

heavy equipment to the KALAHI-CIDSS project in Brgy. Kalatagbak

which has long been delayed due to the non-passable condition

since it is the only route going to the KALAHI-CIDSS project’s site.

Due to LGU’s haste to address the project so as not to further delay

the implementation of the KALAHI-CIDSS project, the rehabilitation

of the FMR was undertaken by the LGU due to its commitment to

support the implementation of the KALAHI-CIDSS program in this

LGU. The undertaking of the said FMR was admittedly an

inadvertent neglect of the part of LGU to consider strict compliance

to existing laws/policies on the matter, and has committed said

error out of the pressing need to help the start of implementation

of the KALAHI-CIDSS project in the aforesaid barangay. The

rehabilitation of the FMR was likewise thought to be just part of

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the routinary road improvement/maintenance activities of the LGU,

thus, no detailed engineering plan and specifications was prepared,

and its inclusion in the Annual Procurement Plan was not given due

consideration to be a hindering factor in its implementation, which

was not so, as you have pointed out in the AOM, and we concur

with your observation.

The supplier of fuel, oil and lubricants (FOL) used in the

implementation of FMR project is the LGU’s regular supplier

through a credit scheme, and withdrawal of fuel and oil to be used

for the subject project was on a per need basis. This is the reason

why the supply of FOL for the project was not bidded-out, and as

earlier mentioned, the project was deemed to be just a road

improvement/maintenance activity.

The billings for the withdrawal of FOL from the supplier were

just submitted to us on a monthly basis, after which processing for

payment is effected. During the processing of payments for the FOL

withdrawal, the date of the billings from the supplier went

unnoticed by the concerned staff reviewing and processing the

documents. We have also discussed with the suppler, the dates of

FOL withdrawals as stated in its billings, as it appears that multiple

withdrawals were made on the same day for a single heavy

equipment, and the supplier’s staff concerned admitted that she

inadvertently forgot to change the dates of each billing when she

generated the billings from her computer using the “copy and

paste” method. Nevertheless, we admit the neglect on our

concerned staff’s part to carefully review the documents being

processed, wherein the deficiencies/errors observed by COA could

have been avoided, and it would not appear that there has been a

splitting of contract to circumvent the requirement of the law.

Again, as mentioned, earlier, the withdrawal of FOL from the

supplier was on a per need basis during the implementation of the

FMR project, and billings for payment were just submitted by the

supplier to the LGU.



The required volume of 810m3 of sub-base coarse aggregates has been served in the noted areas. The program was designed for critical road portions

100

and sections requiring urgent rehabilitation, hence, the spot-regraveling. The LGU is however amenable to and will comply with the recommendations.




The audit team were not satisfied on the submitted comments of the

City Engineering Inspectorate Team.

The approved Change Order and Request for Change Order with

justification were not submitted to the Audit Team. Based on the presented

pictures, the pavement shoulder aggregates on the same areas still needs

rectification based on the findings of the audit team.



Palawan

All the audit observations were well-taken by the concerned Auditee

Agencies. The Audit Team shall continue monitoring the actions taken by

management to ensure their compliance with the given recommendations.









11.2.5. Maintenance of Iniaran Farm to Market Road, Bgy. Labog, Sofronio

Espanola, Palawan


Espanola, Palawan


11.0 AUDIT TEAM’S EVALUATION AND REJOINDER

101

All the audit observations were well-taken by the concerned Auditee

Agencies. The Audit Team shall continue monitoring the actions taken by

management to ensure their compliance with the given recommendations.



The approved plan or Bill of Materials and Cost Estimates’ project description was the re-graveling of 3,240 meters of roads in Barangay Pangobilian. Nowhere in the document was it indicated that re-graveling shall apply only to critical road portions or sections. Since improvements on the two (2) sites are no longer fully visible during ocular inspection, we could not verify whether the 810m3 of sub-base coarse aggregates has been actually served in the noted areas.

102

Appendix 1 A - Concreting of Kamuning Road Phase II, Barangay Kamuning, Puerto

Princesa City, Palawan

Republic of the Philippines

Commission on Audit

Special Services Sector

TECHNICAL SERVICES OFFICE

Quezon City

INSPECTION REPORT FOR INFRASTRUCTURE PROJECT

Date of Report: 10 April 2015

Reference No.

Project Description Concreting of Kamuning Farm to Market Road Phase II

Location (as shown in the

approved location plan) Barangay Kamuning, Puerto Princesa City

Contracting Parties City Government of Puerto Princesa & E.V Villaos Trading

and Construction

Contract Date 20 February 2014 Contract Time 90 calendar days

Effectivity Date 16 March 2014 Expiry Date 14 June 2014

Subject of Inspection 100% Work Accomplishment

Objectives of

Inspection

1. To validate the existence of the reported accomplishments

2. To validate compliance of reported accomplishments with the approved plans and specifications

3. To validate if reported accomplishments are in accordance with the contract schedule

Date of Inspection 20 January 2015

Persons/Personnel

present during

Inspection

Name Position/Designation

/Office Signature

Juanito A. Nostratis ATL – Puerto

Princesa City

APPENDIX 1 – TECHNICAL AUDIT REPORT

103

Neomi O. Teope

Audit Team

Member –

Puerto Princesa

City

Nelda P. Gomez

Audit Team

Member –

Puerto Princesa

City

Persons/Personnel

present during

Inspection

John Jester L.

Cabulao

PSU – CSO

Member

Sheila B. Rallos PSU – CSO

Member

Anthony A. Badilla PSU – CSO

Member

Nena C. Zara PSU - CSO

Member

Kimberly Jam de la

Cruz PNNI – Member

Abigail L. Baisa PNNI – Member

Jomar V. Cua PNNI – Member

John Vincent M.

Recio

TAS II, Technical

Services, COA

Region IV-B

Amado M. Dador Project

Engineer, PPC

GROUND TRUTHING

Island: Luzon Province: Palawan City: Puerto Princesa

Barangay: Kamuning Contract Amount: P 7,800,438.00

Geographic Coordinates

(Starting Point)

Latitude : 9°31'44.11"N

Longitude :

118°37'19.71"E

104

A. Travel Description and Landmarks:

The inspected Farm-to-Market Road is located along Puerto Princesa South Road and

approximately 40 km away from Puerto Princesa City proper. The above mentioned

project has a pavement dimension of 5.0m width, 0.20m thick and 739m in length.

111

B. Inspection Results:

Latitude: 9°31'43.75"N

Longitude :

118°37'19.67"E

The project is not yet

complete at the time of

inspection as there were

still workers sealing

asphalt filler on the

concrete weakened joints

and in between visible

cracks when the team

arrived.

112


Longitude :

118°37'19.75"E


Longitude :

118°37'19.75"E

113


Longitude :

118°37'19.75"E

Digging of road side was

requested to verify the

thickness of item 311-PCCP

and found to be okay as

required in the approved

plans.

Latitude:

9°31'43.90"N

Longitude :

118°37'18.47"E

Road shoulders on both

sides of the concrete

pavement were made up of

river stones instead of

required Aggregate Surface

Course (Item-300) as

required in the Program of

Work.

114

Latitude:

9°31'43.90"N

Longitude :

118°37'18.47"E

Latitude:

9°31'43.98"N

Longitude :

118°37'17.28"E

Scaling and uneven

brooming of concrete were

observed at Sta. 0+ 070.*

115

Latitude:

9°31'44.00"N

Longitude :

118°37'17.04"E

Vehicle related scratches,

scaling, uneven brooming

and absence of asphalt

filler at sta. 0+ 080.

Latitude:

9°31'44.00"N

Longitude :

118°37'17.04"E

116

Latitude:

9°31'43.99"N

Longitude :

118°37'16.82"E

Spalling, uneven brooming


filler at Sta. 0+089.

Latitude:

9°31'43.99"N

Longitude :

118°37'16.82"E

Serious transverse cracks,

uneven brooming and

absence of asphalt filler at

sta.0 + 089.

117

Latitude:

9°31'44.01"N

Longitude :

118°37'16.43"E

Scaling, poke marks,

chipping, uneven brooming


filler at Sta. 0+ 098

Latitude:

9°31'44.01"N

Longitude :

118°37'16.43"E

118

Latitude:

9°31'44.15"N

Longitude :

118°37'16.35"E

Latitude:

9°31'44.06"N

Longitude :

118°37'15.86"E

Side cracks about 5m in

length, uneven brooming,

vehicle related concrete

scratches and unsealed

weakened joints at Sta.

0+ 123

119


Longitude :

118°37'15.86"E

Latitude:

9°31'44.09"N

Longitude :

118°37'15.64"E

120

Latitude:

9°31'44.06"N

Longitude :

118°37'15.64"E

Latitude:

9°31'44.07"N

Longitude :

118°37'15.33"E

Scaling, poke marks,

spillage of concrete were

not removed, unsealed

weakened joints and

uneven brooming were

observed at Sta. 0+130

121


Longitude:

118°37'15.33"E*


Longitude: 118°37'15.33"E

122



Settlement of about 2

concrete blocks coupled

with longitudinal cracks

beginning at Sta. 0+156



123



Spalling of weakened joint,

uneven broomimg,

transverse cracks, scaling,

side cracks about 2.5m in

length and poke marks at

Sta. 0+ 180.

124



Scaling, spalling of

unsealed weakened joints

and uneven brooming were

observed at Sta. 0+199

125





Serious transversal cracks

located within the middle

third of two concrete

blocks, absence of asphalt

filler, uneven brooming and

scaling at Sta. 0+ 221

126





Multiple road defects such

as serious scaling, poke

marks ,absence of asphalt

filler, spalling, uneven

brooming and serious

transverse cracks were

observed from the

beginning of Sta.0 + 249

127




Longitude:

118°37'11.02"E*

128



Scaling, spalling, uneven

brooming and spillage of

concrete that were not

remove and unsealed


0+284


Longitude:

118°37'10.39"E



129



Transverse cracks, scaling,

spalling, vehicle related

concrete scratches, uneven

brooming and unsealed

weakened joints at Sta. 0+

295





130







131



Spalling, serious scaling,

longitudinal cracks, vehicle

related road scratches,

uneven brooming of

concrete and unsealed


0+313


Longitude:

118°37'9.24"E



132

Latitude:

9°31'44.58"N*


Scaling, spalling, vehicle

related road scratches,

concrete spillage which

were not removed/clean,

uneven brooming and


at Sta. 0+362





133

Latitude:9°31'44.64"N

Longitude:118°37'7.18"E

Poke marks, vehicle related

road scratches, uneven


weakened joints between

concrete blocks at Sta.

0+384

9°31'44.64"N

118°37'7.18"E


Longitude: 118°37'6.41"E*

Scaling, longitudinal and

transverse cracks, poke

marks, unsealed weakened

joints, vehicle related

scratches and spalling at

Sta. 0+402.

134





Latitude: 9°31'44.71"N*


135





Transverse cracks, scaling,

uneven brooming and

absence of asphalt filler at

Sta. 0+ 427. Also, captured

in one of the photos taken

is a laborer preparing

asphalt filler as the team

conducts inspection.



136


Longitude; 118°37'5.61"E



Scaling of concrete

pavement and stones of

about 4 inches in dia. were

observed exposed on

pavement surfaces which

indicate that incorrect sizes

of gravel were used in the

construction of Item 311 -

Portland Cement Concrete

Pavement located at the

beginning of Sta. 0+ 453.

Latitude:

9°31'44.75"N*


137


Longitude:

118°37'3.39"E*

Scaling of concrete

pavement and transverse

cracks were observed at

the beginning of Sta.

0+493. Likewise, stones of

about 4 inches were

exposed on concrete

pavement which indicate

that incorrect sizes of

gravel were used in the

construction of Item 311-

PCCP.

Latitude:

9°31'44.83"N




138



Spalling, scaling,

transversal cracks and


were observed at Sta.

0+519

Latitude:

9°31'44.90"N*


139





Concrete spillage were not

removed, spalling of

concrete, unsealed

weakened joints, uneven

brooming and the use of

river stones for road

shouldering among others

were observed at Sta. 0+

548.



140





Transverse cracks located

within the middle third of

the concrete block, scaling

and unsealed weakened

joints at Sta. 0+600.



141



Transversal cracks,

spalling, uneven brooming

and unsealed weakened

joints at Sta. 0+ 703




Longitude:118°36'56.91"

Serious scaling, uneven


weakened joints were

observed at the end of the

project.

142





Scaling, chipping of

concrete, uneven

brooming, and unsealed

weakened joints were

observed at the end of the

road project.

Narrative Findings:

The undersigned together with the COA Audit Team and Members of Civil

Society Organization (CSO) mentioned above proceeded to Barangay Kamuning,

Puerto Princesa City on January 20, 2015 to conduct inspection of the infrastructure

project “Concreting of Kamuning Road – Phase II”.

With reference to the submitted documents provided by the agency and

geotagged photos taken at the project site, hereunder are our noted observations:

1. Project Billboard was not found when the team arrived at the project site

which resulted to a discrepancy amounting of - ₱13,401.25;

2. The contractor put up only makeshift store room instead of constructing

field office/bunkhouse to store the construction materials as shown in the

submitted pictures with discrepancy amounting to - ₱68,178.88;

143

3. The concreting of Kamuning Road – Phase II should have been expired on

June 14, 2014 as stated in the documents provided. However, the project

was still on-going as laborers can be seen working at the project site when

the inspectorate team arrived which resulted to a time delay of 220

calendar days, calculated from the time the project expired to the time of

inspection on 20 January 2015 which resulted to Liquidated Damages

amounting to - ₱326,058.31;

4. Road shoulders were made of small river rocks/boulder instead of using

Item 300 – Aggregate Surface Course, as required in the plans, which

resulted to a discrepancy of - ₱1,052,209.24;

5. Only one line RCPC culvert was constructed instead of two with headwall,

with a discrepancy of - ₱80,081.62;

6. Data gathered from geotagging revealed various defects along the sections

of the road as shown in table below:

Station Description Location Deficiencies

Sta.

0+089

Serious

transverse cracks

involving 2

concrete blocks.

Latitude:

9°31'43.99"N

Longitude

118°37'16.82"E

₱37,403.33

Sta.

0+123

Side Cracks about

5m in length

which calls for

the removal of

two (2) concrete

blocks

Latitude:

9°31'44.06"N

Longitude

118°37'15.86"E

₱37,403.33

Sta.

0+156

Settlement of

about 2 concrete

blocks with

longitudinal

cracks.

Latitude:

9°31'44.07"N

Longitude:

118°37'15.33"E

₱37,403.33

Sta.

0+221

Serious

transversal

cracks located

within the middle

third of two

concrete blocks.

Latitude:

9°31'44.27"N

Longitude:

118°37'12.40"E

₱37,403.33

144


Sta.

0+249

Longitudinal

Cracks running

diagonally in a

concrete block.

Latitude:

9°31'44.35"N

Longitude:

118°37'11.24"E

₱18,701.66

Sta.

0+313

Serious scaling

involving two (2)

concrete blocks;

Longitudinal

cracks in single

concrete block.

Latitude:

9°31'44.48"N

Longitude:

118°37'9.24"E

Latitude:

9°31'44.50"N

Longitude:

118°37'8.58"E

₱56,104.98

Sta.

0+402

Longitudinal

Cracks covering

Two (2) concrete

blocks. Major

scaling involving

Two (2) concrete

blocks and

two(2) blocks

with serious

transverse cracks

Latitude:

9°31'44.69"N

Longitude:

118°37'6.41"E

Latitude:

9°31'44.69"N

Longitude:

118°37'6.41"E

Latitude:

9°31'44.71"N

Longitude:

118°37'6.00"E

₱224,419.98

Sta.

0+427

Serious

transverse cracks

located within

the middle third

of two concrete

blocks.

Latitude:

9°31'44.76"N

Longitude:

118°37'5.61"E

₱37,403.33

Sta.

0+600

Serious

transverse cracks

located within

the middle third

of two concrete

blocks.

Latitude:

9°31'45.04"N

Longitude:

118°37'0.31"E

₱37,403.33

Sta. 0+ One (1) Concrete Latitude: 9°31'45.79"N ₱18,701.66

145


703 Blocks with

serious scaling

Longitude:118°36'56.91"

Total Amount

₱542,347.93

TOTAL DEFICIENCY = 13,401.25 + 68,178.88 + 326,058.31 +1,052,209.24

+ 80,081.62 +542,347.93

= ₱2,082,277.23

In view of the above, the undersigned in a meeting with the members of CSO

last 05 February 2015 at the office of the City Auditor, PPC, recommends that core

samples shall be taken from various sections of the concrete pavement where the

locations will be specified by members of CSO using coring test to determine further

the extent of additional sections of the concrete pavement which will be subjected for

removal and replacement.

Sections along the road with defects as shown in the gathered geotagged photos

should be rectified by the contractor.

The reported 61.16% complete as reflected in the submitted Statement of Work

Accomplished for the period ending 23 May 2014 cannot be fully validated due to

various discrepancies mentioned above.

The above mentioned deficiencies were based on the initial findings gathered

from geotagging which excludes the deficiencies that may arise from the results of

coring test being requested to the agency.

Inspection conducted by:

SGD.

JOHN VINCENT M. RECIO

TAS II, Technical Services, COA Region IV-B

Date: April 10, 2015

Reviewed by:

SGD.

ROLANDO D. LORENZO

OIC-Service Chief, Technical Services, COA Region IV-B


146

Appendix 1B - Concreting of Inogbong Road, Bataraza, Palawan

156

Appendix 1C – Rehabilitation of Malatgao-Culandanum-Panas-Linao Road, Bataraza,

Palawan

TECHNICAL INSPECTION REPORT MALATGAO-CULANDANUM-PANAS-LINAO ROAD

Date of Report: April 20, 2015

Project Description Improvement of Malatgao - Culandanum - Panas - Linao Road

Location (as shown in the

approved location plan) Bataraza, Palawan

Contracting Parties Provincial Government of Palawan & Kim Harold Trading

Manufacturing & Construction , PPC

Contract Date 15 January 2013 Contract Time 120 calendar

days

Effectivity Date 22 March 2013 Expiry Date 19 July 2013


Objectives of

Inspection


2. To validate compliance of reported accomplishments with

the approved plans and specifications

3. To validate if reported accomplishments are in accordance

with the contract schedule

Date of Inspection January 27, 2015

Persons/Personnel

present during

Inspection

Name Position/Designation/Office

Edencio R. Berba State Auditor IV / Team Leader

Irish Jay Q. Pasamonte State Auditor II / Team

Member

Elvys Kenneth E. Miguel State Auditor I / Team

Member

Helen Q. Diaz State Auditor III / Team Member

Timothy Siebo T. Boeheme

Isaac E. Saniban

Jerald B. Bagnate

Albert Q. Meorom

Representative of Western

Philippines University, Palawan

157

Erlinda R.J. Goh Private Citizen of Puerto

Princesa City, Palawan

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality:Bataraza

Barangays: Malatgao,

Culandanum, Panas, Linao Others:


(Starting Point)

Latitude :

8°37'44.36"N

Longitude :

117°28'7.70"E


The Malatgao-Culandanum-Panas-Linao Farm to Market Road is located in Southern

part of Bataraza, Palawan

158


Narrative



Start of the Project and beginning

station of re-shaping of road, Item

200 and Item 201, with 6.1m road

width, Station 0 + 000

Photo

Narrative



Intermittent Potholes Located with

intervals of about 7 meters. Geo-tag

at Station 0 + 180

Photo

Narrative

Latitude: : 8°38'18.24"N

Longitude : 117°27'59.48"E

Undefined earth side ditches and

crowning of Roadway and loosed

surfacing materials with 6.0 meters

width. Geo-tag at station 1 + 280

Photo

159

Narrative


Longitude : 117°27'56.56"E

Loosed surfacing materials with

oversized aggregates about 5 meters

in length, undefined earth side ditches

and crowing of roadways with 6.0

meters in road width. Geo-tag at

Station 1 + 878

Photo

Narrative


Longitude : 117°26'54.49"E

2nd Road Intersection with ave. width

5.5 meters. Geo-tag at Station 3 + 092

Photo

Narrative



Potholes with impounded water,

undefined earth side ditches and

crowning of roadway. Geo-tagged at

Station 3 + 403

Photo

160

Narrative



Damaged Reinforced Concrete Box

Culvert with detached front left wing

wall and eroded road approach of

about 12.5 sq.m. Geo-tagged at

Station 5 + 235

Photo

Narrative:



Photo shows the clogged upstream

section of RCBC with various debris

that block the opening of its

waterways

Photo

161

Narrative


Longitude : 117°26'57.06"E

Muddy Pothole with Loosed

Surfacing Materials. Geo-tagged at

Station 10 + 248

Photo

Narrative


Longitude : 117°26'52.75"E

Properly Maintained Road leading to

end of project. Geo-tagged at Station

11 + 095

Photo

Narrative


Longitude : 117°26'52.82"E

End of the Project in front of Linao

Elementary School with 6.0m road

width .Geo-tagged at Station 11 +

100

Photo

162

The undersigned proceeded to Puerto Princesa City, Province of Palawan on

January 25, 2015 and coordinated with the Team member. The following day, January

26, 2015, the Team travelled to Bataraza, Palawan. The next day, on January 27, the

Team met with Engr. Regino B. Grande – CE II of PEO, Palawan and discuss with him

the procedures and manner on which the inspection should be done. Review of the

submitted documents revealed the following:

The said project is a Re-shaping and Re-gravelling of 10.5 kilometer road and

Construction of 4 barrels of Reinforce Concrete Box Culvert, with the following

programmed Items.


SPCL-1 General Requirements d. Project Sign Board 2.0 sets

e. Safety and Health 1.0 lot

f. Temporary Bunkhouse 1.0 lot

SPCL -2 Re-Shaping & Ditching 10.50 Km. 200 Aggregate Sub-Base Course 500.00 cu.m.

201 Aggregate Base Course 2,674.00 cu.m.

SPCL -3 Const. of 4 Barrel RCBC 1.0 unit

The project starts at Km. 237 + 500 and ends at Km. 248 + 000 with a total

length of 10.50 km., as per submitted Program of Work by the Agency.

The project duration expired last June 21, 2013, but it was only completed on

January 08, 2014, or 202 days after its expiration. Certification submitted by

the agency dated 10 January 2014 disclosed that the said project was

completed beyond project duration and impost Liquidated Damages.

The Team proceeded in the project site on January 27, 2015 and conducted

actual measurement by using of a digital type walking measure and GPS

android cellphone for Geo-tagging.

Project Billboard for the project was nowhere to find at the beginning and end

of the project. According to Engr. Grande it might have been dismantled by the

local residence.

Engr. Grande pinpointed to the team the start of the project with the following

data collected and shown in the geo-tagging:

163

Post Kilometer Reading

Station REMARKS

Km 237+500 0+000 Start of the Project and beginning station of re-shaping of road, Item 200 and Item 201 , Road Width= 6.1 m

Km 237 + 580 0+180 Road defect: Intermittent Potholes located with intervals of about 7m.

Km 238 + 780 1+280 Undefined earth side ditches and crowning of roadway and loosed surfacing materials about 5 meters in road length

Km239 + 378 1+878 Loosed surfacing materials with oversized aggregates about 5 meters in length, undefined earth side ditches and crowning of roadway with 6.0m width

Km 240 + 592 3 + 092 2nd Road Intersection with ave. width 5.5m

Km 240 + 903 3 + 403 Potholes with impounded water , undefined earth side ditches and crowning of roadway

Km242 + 735 5+ 235 Damage Reinforce Concrete Box Culvert with detached front left wing wall

Km. 247 + 748 10 + 248 Loosed surfacing materials with muddy pothole

Km 248 + 600 11 + 100 Site of Linao Elementary, properly maintained and compacted section of road , 6.0 m width, End of Project

The aforementioned collected data were based on measurement thru walking

measure instrument which were not exactly coincided but almost near with the data

collected in the geo-tagging.

The damaged four (4) barrel Reinforce Concrete Box Culverts ( 6 m x 12 m) at

station Km 5+235 has a detached left wing wall from its major structure and an

eroded road approach of about 12. 5sq.m. This may be due to the various debris that

block the opening of RCBC waterways and forcing the water to change course and

damaged the said section of the RCBC approached road. De-clogging of the opening of

the RCBC will help the free flow of water thru the RCBC and repair of the wing wall

and putting embankment on the damage road approached will lengthen its years of

usage.

As per gathered data, the 11,100 linear meters (11.1 Km.) actual length

measured by the undersigned has exceed the programmed length of 10,500 meters

(10.5Km.) and the measured average width of 6 meters conformed with the

programmed width.

The defects noted during actual inspection ranging from loose surfacing

materials, undefined earth side ditches and crowning of roadways, are the common

164

defect that arises in the road re-graveling. Rectification of the said defects should be

done immediately by the contractor to avoid further damage to the road project.


EDWIN G. IGLESIA

SA II, Technical Services

Reviewed by:

ROLANDO D. LORENZO

OIC- Service Chief, Technical Services

165

Appendix 1 D – Maintenance of Iniaran FMR, Bgy. Labog, Sofronio Española,

Palawan


Commission on Audit



Quezon City



Reference No.

Project Description Repair and Maintenance of Labog – Iniaran Farm to

Market Road

Location(as shown in

the approved location

plan)

Barangay Labog, Sofronio Espanola, Palawan

Contracting Parties

Municipal Government of Sofronio Espanola, Palawan and

Pulot Petron Service Station and Herenzo Gasoline Station

for the supply of Fuels and Lubricants ( Project by

Administration)

Contract Date

No Submitted

Contract

Agreement

Contract Time N/A

Effectivity Date N/A Expiry Date N/A

Subject of

Inspection 100% Work Accomplishment

Objectives of

Inspection

4. To validate the existence of the reported accomplishments 5. To validate compliance of reported accomplishments with

the approved plans and specifications 6. To validate if reported accomplishments are in accordance

with the contract schedule


166

Persons/Personnel

present during

Inspection

Persons/Personnel

present during

Inspection

Name Position/Designation

/Office Signature

Engr. Sagani P.

Virrey

Munincipal

Engineer

Corsennie A.

Yan

Audit Team Leader

– Sofronio Espanola

Ma. Aceili V.

Paduga

Audit Team

Member – Sofronio

Espanola

John Vincent

Recio

TAS-II, Technical

Services, COA

Region IV - B

Judith M.

Hilario CSO – Member

Reniel Z.

Rocaberte CSO – Member

Hilda M.

Gabuco CSO – Member

Cecilia C. Castro CSO – Member

Karen D. Banda CSO – Member

Antonio E.

Francisco CSO – Member

Danny P.

Cabiguen CSO – Member

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Sofronio

Española

Barangay: Labog Project Cost: P75,000.00


(Starting Point)

Latitude : 9° 3'43.44"N

Longitude :118°

3'38.86"E

167


The inspected Farm-to-Market Road is located along Puerto Princesa South Road,

Sofronio Espanola, Palawan and approximately 21km away from Pulot Center

Quarry Site where aggregates are sourced according to the Municipal Engineer.

168


Latitude: 9° 3'43.44"N

Longitude : 118° 3'38.86"E

Labog-Iniaran FMR begins with the

exception of an old concrete

pavement from sta.0+000 – sta. 0+110.

169


Longitude : 118° 3'52.00"E

Road shoulders were already covered

with vegetation - geotag at Sta.0+505


Longitude : 118° 4'1.00"E

Impounding of water at Sta.0+801

170



Potholes taken at Sta.0+ 867



171



Interview with Mr.Hadium Nassad,

local resident thereat, attested that the

Municipal Engineering Office

conducted maintenance work on the

subject road once only last year.

Geotag Photos taken at Sta.0+ 950


Longitude : 118° 4'26.00"E

Road Shoulders on both sides of the

graveled road were already covered

with vegetation.

172

Narrative Findings:

The Audit Team III proceeded to the Municipality of Sofronio Espanola on

January 22, 2015 to make courtesy call to Hon. Marsito Acoy, Municipal Mayor,

Sofronio Espanola, Palawan, and discuss the purpose of Team’s visit which pertains to

the issued COA Office Order No. 2014-081 dated December 22, 2014. After some

discussions with Mayor Acoy, the Municipal Accountant brought the Team to the

Office of the Municipal Engineer Headed by Engr. Isagani P. Virrey to interview him

with regards to the contents of the Office Order and requested him for relevant

documents needed in the Team’s Audit Activities only to find out the following:


Longitude : 118° 5'41.00"E

Sta. 5+000 end of the road project.

The conditions of the graveled sections

from Sta.0+110 to Sta.5+000 were

almost the same except for some

potholes observed at sta. 0+801 and

sta. 0+867.

The undersigned cannot fully

determine the total consumption of the

various equipment used in the project

due to absence of Program of Works,

Approved Plans and Contract

Agreement.

In an interview by the Audit Team to

Mr. Hadium Nassad a Lupon

Tagapamayapa in the area allegedly

claimed that maintenance work along

Iniaran Road was carried out by the

agency only once last year. As to

alleged vegetation control, there were

no longer traces of cut/trimmed foliage

found when the team arrived.

173

The maintenance of Labog – Iniaran FMR was allegedly implemented in the absence of approved plans, profile and cross-section which were the basic requirements in the preparation of review and inspection;

The only documents provided by the ATL that were gathered from the Municipal Accountant were various Obligation Requests, Journal Entry Voucher, unnumbered Job Order, Withdrawal Slips, Statement of Account and Incomplete OR from Pulot Petron Service Station, Purchase Requests, Collection Receipt from Herenzo Gasoline Station and Program of Works with all items of works expressed in lumpsum;

The alleged work items accomplished in the project can only be identified by the Municipal Engineer thru pinpointing without any documentary reference;

The Team has no recourse but to gather geotag data based on the pinpointed location of the Municipal Engineer. The data collected were shown in the prepared Inspection Report. Evaluation of work accomplished and technical evaluation of the project could

not be made due to the absence of documentary requirements as stated under COA

Memorandum No. 2005-027 and COA Circular No. 2009-001 dated February 12, 2009

and COA-Circular No. 2012-001 dated June 14, 2012, to wit:

1. Approved plans, profile and cross section 2. Agency’s design standard 3. Sales invoice of all materials involved in the project 4. Contract Agreement between the Agency and Suppliers 5. Approved Purchase Order 6. Certificate of Completion 7. Approved Material Source Maps from the Provincial Engineering Office and

Nearest DPWH District Office 8. Heavy and Light Equipment Utilization Report for CY 2014 9. Municipal Inventory Report of existing Light and Heavy Equipment 10. Construction Schedule 11. Materials Quality Control Test Results 12. Photographs before, during and after construction per RA 6954

With reference to Obligation Requests # 20031400749 and 20031400750

provided by the ATL, the amount of items procured for the maintenance of Labog -

Iniaran FMR has reached

P 51,233.909

174

Appendix 1 E – Maintenance of Kanangkaan FMR, Bgy. Punang, Sofronio Española,

Palawan


Commission on Audit



Quezon City



Reference No.

Project Description Repair and Maintenance of Kanangkaan FMR

Location (as shown in

the approved location

plan)

Barangay Punang, Sofronio Española, Palawan

Contracting Parties “Project by Administration”

Contract Date

No Submitted

Contract

Agreement

Contract Time N/A

Effectivity Date N/A Expiry Date N/A


Objectives of

Inspection

1. To validate the existence of the reported accomplishments 2. To validate compliance of reported accomplishments

with the approved plans and specifications 3. To validate if reported accomplishments are in

accordance with the contract schedule


Name Position/Designation/Office Signature

Engr. Sagani P.

Virrey

Municipal Engineer,

Sofronio Espanola

175

Persons/Personnel

present during

Inspection

Corsennie A. Yan Audit Team Leader –

Sofronio Espanola

Ma. Aceili V. Paduga Audit Team Member

– Sofronio Espanola

John Vincent Recio

TAS II, Technical

Services, COA Region

IV - B

Judith M. Hilario WPU, Palawan

Reniel Z. Rocaberte WPU, Palawan

Hilda M. Gabuco WPU, Palawan

Cecilia C. Castro Pulot Center Farmers

Association

Karen D. Banda Pulot 2 Farmers

Association

Antonio E. Francisco

Piatan Irrigators

Community

Association

Danny P. Cabiguen Palawan NGO

Network

GROUND TRUTHING

Island: Luzon Province: Palawan Municipality: Sofronio

Española

Barangay: Kanangkaan Project Cost: P63,500.00 (per submitted Obligation

Request)


(Starting Point)

Latitude : 9° 0'56.80"N

Longitude :118°

3'17.72"E

C. Travel Description and Landmarks:

176

The Kanangkaan Farm-to-Market Road is located along Puerto Princesa South Road,

Sofronio Espanola, Palawan and approximately 220 lm away from Punang Quarry

Site where aggregates are sourced according to the Municipal Engineer.

177


Longitude : 118° 3'17.72"E

to


Longitude : 118° 3'17.72"E

Geotagging from the beginning of

Kanangkaan road to sta.0+421(marker 2)

did not pushed through due to presence of

heavy equipment doing maintenance work

when the Team Arrived.


Longitude : 118° 2'52.00"

Road intersection between

Kanangkaan road and road leading to

Punang quarry site which is about

220m away. Geotag at Sta 1+208

178


Longitude : 118° 2'55.00"E

Punang quarry site, place where the

aggregates used in the maintenance of

Kanangkaan road were extracted and

is just about 220m away from the

intersection of Kanangkaan road.


Longitude : 118° 2'29.00"E

Newly re-shaped section of

Kanangkaan road - Geotag at

sta.2+230

179



The road project ends at

sta.3+160.

The undersigned cannot fully

determine the total consumption of the

various equipment used in the project

since there were already maintenance

activities taking place on various

sections of the subject FMR and due to

absence of Program of Works,

Approved Plans, Contract

Agreementand equipment utilization

report for the project.

In an interview by the Audit Team

to Mr. Zacarias Abid, Punong Barangay

at Barangay Punang allegedly claimed

that maintenance work along

KanangkaanRoad was carried out by

the agency only once last year and

there were 20 truckloads of aggregates

contributed by CERI a nearby mining

firm in the maintenance of

Kanangkaan road.

Narrative Findings:


The Audit Team III proceeded to the Municipality of Sofronio Espanola on

January 22, 2015 to make courtesy call with Hon. Marsito Acoy, Municipal Mayor,

Sofronio Espanola, Palawan, and discuss the purpose of Team’s visit which pertains

to the issued COA Office Order No. 2014-081 dated December 22, 2014. After

some discussions with Mayor Acoy, the Municipal Accountant brought the Team to

the Office of the Municipal Engineer Headed by Engr. Isagani P. Virrey to interview

him with regard to the contents of the Office Order and requested him for relevant

documents needed in the Team’s Audit Activities only to find out the following:

180

The maintenance of Kanangkaan FMR was allegedly implemented in the absence of approved plans, profile and cross-section which were the basic requirements in the preparation of review and inspection;

The only documents provided by the ATL that were gathered from the Municipal Accountant were Obligation Requests, Withdrawal Slips and Purchase Request;

The alleged work items accomplished in the project can only be identified by the Municipal Engineer thru pinpointing without any documentary reference;

The Team has no recourse but to gather geotag data based on the pinpointed location of the Municipal Engineer. The data collected were shown in the prepared Inspection Report.

Evaluation of work accomplished and technical evaluation of the project

could not be made due to the absence of documentary requirements as stated

under COA Memorandum No. 2005-027 and COA Circular No. 2009-001 dated

February 12, 2009 and COA-Circular No. 2012-001 dated June 14, 2012, to wit:

1. Approved plans, profile and cross section 2. Agency’s design standard 3. Sales invoice of all materials involved in the project 4. Contract Agreement between the Agency and Suppliers 5. Approved Purchase Order 6. Certificate of Completion 7. Approved Material Source Maps from the Provincial Engineering Office and

Nearest DPWH District Office 8. Heavy and Light Equipment Utilization Report for CY 2014 9. Municipal Inventory Report of existing Light and Heavy Equipment 10. Construction Schedule 11. Materials Quality Control Test Results 12. Photographs before, during and after construction per RA 6954

With reference to Obligation Request # 200031400744 provided by the ATL,

the amount of items procured for the maintenance of Kanangkaan FMR was only

P 5,301.00


JOHN VINCENT M. RECIO

TAS II, Technical Services, COA Region IV-B


Reviewed by:

ROLANDO D. LORENZO

OIC-Service Chief, Technical Services, COA Region IV-B


181

Appendix 1F – Improvement and Rehabilitation of Bgy. Kalatagbak, Quezon,

Palawan

TECHNICAL INSPECTION REPORT BARANGAY KALATAGBAK FARM-TO-MARKET ROAD

Date of Report: April 20, 2015

Project Description Improvement & Rehabilitation of Barangay Kalatagbak Farm to

Market Road (FMR)

Location(as shown in the

approved location plan) Quezon, Palawan

Contracting Party Municipal Government of Quezon, Palawan

Mode of Procurment By Administration Contract Time Not Stated in POW

Effectivity Date Upon Released of

Fund Expiry Date Not Applicable


Objectives of

Inspection


8. To validate compliance of reported accomplishments with the

approved plans and specifications

9. To validate if reported accomplishments are in accordance with

the contract schedule


Persons/Personnel

present during

Inspection

Name Position/Designation/Office

Edencio R. Berba State Auditor IV / Team Leader

Irish Jay Q. Pasamonte State Auditor II / Team Member

Elvys Kenneth E. Miguel State Auditor I / Team Member

Helen Q. Diaz State Auditor III / Team Member

Timothy Siebo T. Boehme

Isaac E. Saniban

Jerald B. Bagnate

Albert Q. Meorom

Representatives of Western Philippines

University, Palawan

Erlinda R.J. Goh Private Citizen of Puerto Princesa

City, Palawan

182

GROUND TRUTHING


Barangay: Kalatagbak Others:


(Starting Point)

Latitude :

9°15'20.32"N

Longitude :

118°5'59.19"E


Road starts near the Iwahig River at Sitio Maslog and ends at the Barangay Hall.

Photo of Iwahig River:

183


Narrative



Start of the Project and beginning

station of Improvement &

Rehabilitation of Brgy. Kalatagbak

FMR, with 5.0m road width. Geo-

tagged at Station 0 + 000

Photo

Narrative


Longitude : 118°6’18.12"E

Intermittent Pot holes; Muddy and

loose top material with 5m road

width. Geo-tag at Station 0 + 740

Photo

184

Narrative

Latitude: : 9°15'18.54"N



crowning of road way, Insufficient

binding materials and oversize

aggregates, with 5.5 m width. Geo-

tag at station 1 + 500

Photo

Narrative



Loosed surfacing materials with

oversized aggregates, undefined

earth side ditches and crowing of

roadways with 5.0 meters in road

width. Geo-tag at Station 2 + 000

Photo

185

Narrative




crowning of road way , half of the

road is muddy and with loose top

material which resort to water

ponding on road side with 4.5m

road width

Photo

Narrative

Latitude : 9°15'11.63"N


Potholes with impounded water,

undefined earth side ditches and

crowning of roadway; Muddy and

loose top material with 5m road

width. Geo-tagged at Station 2 +

530

Photo

186

Narrative

Latitude: 9°14 ' 58.94"N


Deteriorated section of the road,

insufficient surfacing materials with

boulder on middle and side of the

road, with 4.5m width. Geo-tagged

at Station 3 + 000

Photo

Narrative:



Intermittent Pot holes with

waterponding; Muddy and loose top

material with 5.0m road width.

Geo-tagged at Station 3 + 400

Photo

187

Narrative


Longitude : 117°26'57.06"E

Loose surfacing materials and

oversize aggregates with 5m road


600

Photo

Narrative



Intermittent Pot holes; Muddy and

loose top material with 4.5m road


900

Photo

188

Narrative



End of the project, landmark:

Kalatagbak Barangay Hall,

Properly maintained and compacted

section of road with 5m width. Geo-

tagged at Station 4 + 100

Photo

The aforementioned gathered data were based on measurement thru walking

measure which did not exactly coincide but almost the same with the data gathered in

the geo-tagging.

The actual length of 4,211.50 linear meters (4.2115 Km.) measured by

the undersigned has exceeded the programmed length of 3,520 linear

meters (3.520 Km.). The actual measured average width was recorded

to be five (5) meters which conformed with the programmed width.

The aforementioned defects noted during actual inspection should be

immediately rectified to avoid further damage to the project.

Evaluation of work accomplishment and technical evaluation of programmed

work could not be made due to the absence of the documentary requirements cited

under COA- Memorandum No. 2005-027 and COA-Circular No. 2009-001 dated

February 12, 2009 and COA-Circular No. 2012-001 dated June 14, 2012, to wit:

1. Approved Road plans with Typical road cross section;

189

2. Delivery Receipt and Sales Invoice of all materials involved in the

project;

3. Certificate of Inspection and Acceptance for the road;

4. Approved Materials Source Maps from the Provincial Engineering Office

and nearest DPWH District Office;

5. Heavy and Light Equipment Utilization Report for CY 2012-CY2014;

6. Municipal Inventory Report of Existing Light and Heavy Equipment;

7. Construction Schedule;

8. Material Quality Control Test Results;

9. Photographs before, during and after construction per RA 6954.


EDWIN G. IGLESIA

SA II, Technical Services

Reviewed by:

ROLANDO D. LORENZO

OIC- Service Chief, Technical Services

190

Appendix 1G – Regravelling of Sitio Mati and Paratungon roads, Barangay

Pangobilian, Brooke’s Point, Palawan

199

We acknowledge the following officials and employees of the Commission on

Audit for their contributions to the various activities of the CPA Project and this audit:

Former Chairperson Maria Gracia M. Pulido-Tan who answered the call of President Benigno Simeon Aquino III for transparency and enhanced citizen participation in government operations through the CPA Project;

Commissioner Heidi L. Mendoza who provided the impetus for the modality adopted in this citizen participatory audit;

The CPA Project Management Team;

The CPA Audit Teams

We acknowledge the following for their valuable contributions to the CPA

Project and this audit:

The Australian Agency for International Development (AusAID) for the resource support and facilitation of various activities of the CPA Project;

The Affiliated Network for Social Accountability in East Asia and the Pacific (ANSA-EAP) for providing assistance in all phases of the project and engaging the CSO partners.

Our Civil Society Organization partners for providing technical support and participation:

The Local Government Units of the Province of Palawan through their Governor and

City/Municipal Mayors, together with their Officials and Employees.

APPENDIX 2 - ACKNOWLEDGMENTS

200

Pursuant to Office Order No. 2014-081 dated December 22, 2014 and unnumbered Office Order dated December 17, 2014.

CPA Team 1

Project: Location

a. Malatgao-Culandanum-Panas-Linao Road Bataraza, Palawan

b. Kalatagbak Road Quezon, Palawan

Team Composition

COA Personnel

Name Position Designation

Melchor P. Borja Supervising Auditor Team Supervisor

Edencio R. Berba State Auditor IV Audit Team Leader

Helen Q. Diaz State Auditor III Audit Team Member

Irish Jay Q. Pasamonte State Auditor II Audit Team Member

Elvys Kenneth E. Miguel State Auditor I Audit Team Member

Engr. Edwin G. Iglesia State Auditor II Audit Team Member

Civil Society Organization (CSO) - Citizen Partners

Timothy Siebo T.

Boehme

Western Philippines

University

Audit Team Member

Isaac E. Saniban WPU Audit Team Member

Jerald B. Bagnate WPU Audit Team Member

Albert Q. Meorom WPU Audit Team Member

Erlinda R.J. Goh PICE/Senior Citizens Audit Team Member

CPA Team 2

Project: Location

Kamuning Road Phase II Puerto Princesa City, Palawan

Team Composition

COA Personnel



Juanito A. Nostratis State Auditor IV Audit Team Leader

Nelda P. Gomez State Auditor III Audit Team Member

APPENDIX 3 – AUDIT TEAM COMPOSITION

201


Noemi O. Teope State Auditor III Audit Team Member

Ronald C. Mendoza State Auditing Examiner II Audit Team Member

John Vincent Ambrose

Recio

Technical Audit Specialist II Audit Team Member


Engr. Nena C. Zara,

Dean

PSU College of Engineering

Architecture and

Technology

Audit Team Member

Mr. Anthony A. Badilla PSU College of Arts and

Humanities

Audit Team Member

Sheila B. Rallos PSU Philippine Institute of Civil Engineers Student Organization

Audit Team Member

John Jester L. Cabulao PSU Audit Team Member

Abigail L. Baisa Palawan NGO Network Inc. (PNNI)

Audit Team Member

Kimberly Jam de la Cruz PNNI Audit Team Member

Jomar V. Cua PNNI Audit Team Member

CPA Team 3

Project: Location

a. Iniaran Road Sofronio Española, Palawan

b. Kanangkaan Road Sofronio Española, Palawan

Team Composition

COA Personnel



Corsennie A. Yan State Auditor III OIC - Audit Team Leader

Ma. Aceili V. Paduga State Auditing Examiner II Audit Team Member

John Vincent Ambrose

Recio

Technical Audit Specialist II Audit Team Member


Judith M. Hilario Western Philippines

University

Audit Team Member

Reniel Z. Rocaberte WPU Audit Team Member

Hilda M. Gabuco WPU Audit Team Member

Cecilia C. Castro Pulot Center Farmers Audit Team Member

202

Association

Karen D. Banda Pulot 2 Farmers

Association

Audit Team Member

Antonio E. Francisco Piatan Irrigators

Community Association

Audit Team Member

Danny P. Cabiguen Palawan NGO Network Inc.

(PNNI)

Audit Team Member

CPA Team 4

Project: Location

a. Inogbong Road Bataraza, Palawan

b. Sitio Mati and Sitio Paratungon Road Brooke’s Point, Palawan

Team Composition

COA Personnel



Ruth C. Garcellano State Auditor III OIC - Audit Team Leader

Monique R. Baniega State Auditor III Audit Team Member

Jimmy S. Renia TAS II Audit Team Member


Ryan A. Limco Western Philippines

University

Audit Team Member

Jaymark A. Julaton Western Philippines

University

Audit Team Member

Donna May S. Castor Western Philippines

University

Audit Team Member

Glenn A. Besis

Bataraza Municipal

Farmers Irrigators &

Fisherfolks Association

Audit Team Member

Romeo T. Bontoyan Culandanum Farmers

Irrigators Association

Audit Team Member

CPA Team 5

Project: Location

a. Bgy. Poblacion to Mauringen Road Araceli, Palawan

b. Loblob-Calitang Road El Nido, Palawan

c. Marirong to Cayasan Road Roxas, Palawan

203

Team Composition

COA Personnel



Elisa T. Chan State Auditor III OIC - Audit Team Leader

Floriza Faunaliza B.

Lucero

State Auditor II Audit Team Member

Marjorie Ann R.

Pasamonte

State Auditor I Audit Team Member

Reymundo R. Manalo Senior Technical Audit

Specialist

Audit Team Member


Douglas M. Evio Roxas Seed Growers

Association

Audit Team Member

Shigemi Muramatsu ANSA – EAP Audit Team Member

Arnel Culala ANSA – EAP Audit Team Member

CPA Team 6

Project: Location

Sitio Nalbot to Barangay Old Guinlo Road Taytay, Palawan

Team Composition

COA Personnel



Rudolph M. Garraez State Auditor III OIC - Audit Team Leader

Marco Antonio T.

Asuncion

State Auditor I Audit Team Member

Alex M. Lapidante Senior Technical Audit

Specialist

Audit Team Member


Michael Maquiling Butil Marketing

Corporation

Audit Team Member

Danilo J. Java Maliliit na Magsasaka sa

Candayog

Audit Team Member

Inoncion M. Samaniego Malampaya – Pancol

Multipurpose Cooperative

Audit Team Member

204

The Audit Team prepared a survey questionnaire based on the provisions of

Philippine Agricultural Engineering Standards (PAES 421:2009) regarding the typical

location (Section 5) and design considerations (Section 6) for Farm to Market Roads.

The questionnaire was composed of ten questions. Positive responses are attained if

questions 1 to 6 were answered “Yes”, while questions 7 to 10 were answered “No”

by the interviewees.

For the Improvement of Malatgao-Culandanum-Panas-Linao Road, Bataraza, Palawan, the Audit Team found nine (9) individuals who willingly responded to the questionnaire. The respondents were composed of eight (8) farmers and one (1) housewife, all of which have been residing within the vicinity of the project for many years. A sample of the accomplished questionnaires was provided on Page 22. The results of which are as follows:

Name of Respondent: Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10

(Favors “Yes” answers) (Favors “No” answers)

● Christopher

Caboteja Yes Yes Yes Yes Yes Yes Yes No Yes No

● Elmer Macabeo Yes Yes Yes No Yes Yes Yes No Yes Yes

● Myrna Aldea Yes Yes Yes Yes Yes Yes Yes No Yes No

● Rocelyn Edlap Yes Yes Yes No Yes Yes Yes No No No

● Mercy Valdez Yes Yes Yes No Yes Yes Yes No Yes No

● Hilario Casiano Yes Yes Yes No Yes Yes No No Yes No

● Rando Lakbay Yes Yes No Yes No Yes Yes No Yes No

● Charles Torres Yes Yes Yes Yes Yes Yes Yes No Yes No

● Antonio Carmaran Yes Yes Yes No Yes Yes Yes No Yes Yes

Favorable Responses: 100% 100% 89% 44% 89% 100% 11% 100% 11% 78%

Based on the foregoing data, questions 4, 7 & 9 got low favorable response rates

due to the following reasons:

1. Only 44% of the respondents found that the road is strong enough to withstand loads without excessive deformation.

APPENDIX 4 – RESULTS OF INTERVIEW

205

2. Most respondents have observed that the road passes through swampy or flooded areas. Such areas have a lower weight bearing capacity and therefore may cause problems in the future.

3. Most respondents also have observed that some parts of the road have steep slopes; hence there is risk of erosion, landslide or vehicular accidents on those areas.

On the other hand, the rest of the questions mostly got favorable responses. All of the respondents found the location and design of the road project to be proper and beneficial to nearby residents and more importantly to farmers. Furthermore, most of them agreed that the road provided adequate space and smooth road surface for the safe and convenient transport of products and also for efficient internal circulation within the development area. Overall, the respondents showed highly favorable observations toward the project.

For the Improvement and Rehabilitation of FMR in Barangay Kalatagbak, Quezon, the Audit Team found twelve (12) individuals who willingly responded to the questionnaire. The respondents were composed of eleven (11) farmers and one (1) heavy equipment operator, all of which have been residing within the vicinity of the project for many years. The results of the interview are as follows:

Name of Respondent: Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10

(Favors “Yes” answers) (Favors “No” answers)

● Nelson Cabudac Yes No No No Yes Yes Yes No Yes Yes

● Ethbert Alvarado No No No No Yes No Yes No Yes Yes

● Erlinda Parenas Yes No No Yes Yes Yes Yes No Yes Yes

● Anthony Mosil Yes Yes No Yes Yes Yes No No Yes No

● Orly Busa Yes Yes No Yes Yes Yes No No Yes No

● Jaydee Abong Yes Yes No No Yes Yes Yes No Yes No

● Belanio Tecklasan Yes No Yes Yes Yes Yes Yes No Yes Yes

● Eme Mosil No No Yes Yes Yes Yes Yes No Yes Yes

● Romy Diong No Yes Yes Yes Yes Yes Yes No Yes Yes

● Pablo Laksian No Yes Yes Yes Yes Yes Yes No Yes Yes

● Bebeth Ingcad Yes No No No Yes No Yes No Yes No

● Julieta Sotes Yes Yes Yes Yes Yes Yes

No Yes Yes

Favorable Responses: 67% 50% 42% 67% 100% 83% 18% 100% 0% 33%

Based on the foregoing data, questions 3, 7, 9 & 10 got low favorable response

rates due to the following reasons:

1. Only 42% of the respondents found that the road provides adequate space and smooth road surface for the safe and convenient transport of produce.

2. Most respondents have observed that the road passes through swampy or flooded areas. Such areas have a lower weight bearing capacity and therefore may cause problems in the future.

206

3. All of the respondents have observed that some parts of the road have steep slopes; hence there is risk of erosion, landslide or vehicular accidents on those areas.

4. Most respondents have observed occurrences of environmental problems such as landslides or forest denudation near the FMR.

Even so, most of the respondents agreed that the FMR benefits local residents and that it provides adequate and efficient internal circulation within the development area. The high favorable scores in questions 1, 4, 5, 6, & 8 show that the respondents appreciated the benefits brought about by the FMR to them.

Sample Questionnaire:

207

APPENDIX 5 – COMPUTATION OF LIQUIDATED DAMAGES

208

Date of Fuel/Oil

Withdrawal

Disb.

Voucher

JEV No. Heavy

Equipment

Billing

Statement

Deemed

Excessive

Billing Statement per

Charge Invoice (CI)

Billing Statement

Period Covered

28-May-2014 20-127 2014-06-02-128 DT5 9,434.00 9,434.00 No Billing Statement

28-May-2014 20-133 2014-06-02-130 DT5 11,236.00 per CI No. 00286 May 28-29,2014

28-May-2014 20-134 2014-06-02-133 DT5 10,038.00 10,038.00 per CI No. 00308 May 28-29,2014




28-May-2014 20-127 2014-06-02-128 Payloader 9,276.00 No Billing Statement

28-May-2014 20-133 2014-06-02-130 Payloader 9,276.00 9,276.00 per CI No. 00286 May 28-29,2014





29-May-2014 20-134 2014-06-02-133 Payloader 6,787.00 per CI No. 00308 May 28-29,2014

29-May-2014 20-133 2014-06-02-130 Road Grader 5,758.50 5,758.50 per CI No. 00286 May 28-29,2014

29-May-2014 20-134 2014-06-02-133 Road Grader 5,769.00 per CI No. 00308 May 28-29,2014


30-May-2014 20-135 2014-06-02-132 DT6 8,815.00 per CI No. 00309 May 30-June 2, 2014

30-May-2014 20-135 2014-06-02-132 Payloader 9,276.00 per CI No. 00309 May 30-June 2, 2014

30-May-2014 20-127 2014-06-02-128 Payloader 5,618.00 5,618.00 No Billing Statement

2-Jun-2014 20-135 2014-06-02-132 Payloader 6,787.00 6,787.00 per CI No. 00309 May 30-June 2, 2014

2-Jun-2014 20-135 2014-06-02-132 DT6 8,315.00 8,315.00 per CI No. 00309 May 30-June 2, 2014

2-Jun-2014 20-136 2014-06-02-134 DT6 9,440.00 per CI No. 00315 June 2-3, 2014

2-Jun-2014 20-136 2014-06-02-134 Payloader 9,276.00 per CI No. 00315 June 2-3, 2014

3-Jun-2014 20-137 2014-06-02-127 DT6 9,440.00 per CI No. 00316 June 3-4,2014

3-Jun-2014 20-136 2014-06-02-134 DT6 8,290.00 8,290.00 per CI No. 00315 June 2-3, 2014

3-Jun-2014 20-137 2014-06-02-127 Payloader 8,434.00 per CI No. 00316 June 3-4,2014

3-Jun-2014 20-136 2014-06-02-134 Payloader 6,787.00 6,787.00 per CI No. 00315 June 2-3, 2014

6-Jun-2014 20-138 2014-06-02-131 Payloader 5,695.00 5,695.00 per CI No. 010397 June 5-6, 2014

6-Jun-2014 20-142 2014-06-02-152 Payloader 8,815.00 per CI No. 00318 June 6-7, 2014

6-Jun-2014 20-138 2014-06-02-131 DT6 8,190.00 8,190.00 per CI No. 010397 June 5-6, 2014

6-Jun-2014 20-142 2014-06-02-152 DT6 9,744.50 per CI No. 00318 June 6-7, 2014

15-Jul-2014 20-187 2014-08-01-205 Payloader 10,149.00 10,149.00 per CI No. 011262 July 14-15, 2014

15-Jul-2014 20-187 2014-08-01-205 DT6 3,276.00 3,276.00 per CI No. 011262 July 14-15, 2014

15-Jul-2014 20-188 2014-08-01-208 DT6 10,037.50 per CI No. 011263 July 15-16,2014

15-Jul-2014 20-188 2014-08-01-208 Payloader 11,701.00 per CI No. 011263 July 15-16,2014

TOTAL ₱ 146,594.50

For the period May to August 2014

20% DF - Improvement and Rehabilitation of Bgy. Kalatagbak Farm to Market Road

Schedule of Fuel, Oil, and Lubricant w/ Multiple Charges

APPENDIX 6 – SCHEDULE OF FUEL, OIL AND LUBRICANTS

209

Item 300/Aggregate Surface Course - consist of a wearing or top course composed of

gravel or crushed aggregate and binder materials.

Item 311/Portland Cement Concrete Pavement – consist of pavement of Portland

Cement Concrete, with or without reinforcement, constructed on the prepared

base.

Geographic Coordinates - either of the two lines of latitude and longitude whose

intersection determines the geographical point of a place.

Latitude - the angular distance of a place north or south of the earth's equator, or of a

celestial object north or south of the celestial equator, usually expressed in degrees

and minutes.

Longitude - the angular distance of a place east or west of the meridian at Greenwich,

England, or west of the standard meridian of a celestial object, usually expressed in

degrees and minutes.

Longitudinal cracks - are non-load-associated cracks. Longitudinal cracks are single

cracks approximately parallel to the centerline. These cracks are primarily due to

the contraction and shrinkage of the surface course, reflection from underlying

pavement joints, poorly constructed paving joints, or roadbed settlement.

Scaling - general loss of surface mortar or mortar surrounding the coarse aggregate

particles on a concrete surface.

Settlement - noticeable or abrupt vertical distortion from the original pavement

profile or cross-slope. Settlement is often associated with fill areas. This condition

may also have associated cracking, Settlement Cracking.

Spalling concrete - is concrete that has broken up, flaked, or become pitted. This is

usually the result of a combination of poor installation and environmental factors

that stress the concrete, causing it to become damaged.

Transverse Cracks - are non-load-associated cracks. Transverse cracks appear

approximately at right angles to the centerline. These cracks are primarily due to

the contraction and shrinkage or the surface course or reflection from underlying

pavement joints.

GLOSSARY

FARM TO MARKET ROAD FOR THE PROVINCE OF PALAWAN · 2017. 9. 28. · 1.3.2. Araceli, Palawan Araceli...

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