DPWH: Remaining ‘unobligated’ allotment can still be used

This refers to the article titled “P13-B infra projects messy–COA” by Marlon Ramos (Second Front Page, 12/25/15).

While we recognize the Commission on Audit report as the basis of Ramos’ article, we wish to clarify the issue on the “more than P13.2 billion worth of infrastructure implemented by the Department of Public Works and Highways (DPWH) in 2014 violated the procurement law”—lest readers have been misled on the facts surrounding it.

In the article, Ramos cited, as an example, the failure of a certain contractor to put up the project billboard as noncompliance to the provisions of Republic Act No. 9184 or Government Procurement Reform Act and its revised implementing rules and regulations (RIRR). This clearly shows that lapse in the procurement process, as aforecited, is merely a procedural and not a corruption-related issue. This deficiency is one of the 18 noted “deficiencies” or procedural lapses contained in the COA report in projects with a total amount of P13.2 billion.

In this connection, we have already called the attention of the concerned regional directors and district engineers to strictly adhere to the applicable provisions of the RIRR for RA 9184 in all stages of the procurement process to ensure transparency, efficiency and economy.

Please allow us, too, to clarify the reported “P34 billion ‘unobligated’ due to the failure of Public Works Secretary Rogelio L. Singson to make use of the funds.”

As of end of December 2014, there was indeed an unobligated balance of P33.9 billion whose use can be extended up to 2016 or up to two years, as provided for under the GAA (General Appropriations Act) budget for capital outlays.

However, may we point out that out of the P33.9 billion unobligated balances, P16.7 billion has been submitted to the Department of Budget and Management for withdrawal for the following reasons: savings from completed projects in the amount of P196 million; savings from bidding/cost variance with P4.5 billion, and P12 billion worth of discontinued projects. The discontinued projects include the Edsa improvement project which could not get the approval of the Metropolitan Manila Development Authority; the Bonifacio Global-Pasig and Edsa/Taft flyovers; and the widening of C-5/Bagong Ilog which also needs the approval of local government units. It must be noted as well that right-of-way issues have delayed the implementation of projects in Metro Manila.

The remaining P17.2 billion is covered by the extension allowed by GAA provisions for the implementation of projects in 2015-2016.

May we also cite the Supreme Court ruling on the DAP (Disbursement Acceleration Program) projects which dampened the ability of the DPWH to realign/use the savings for continuing projects.

—ROGELIO L. SINGSON, secretary, Department of Public Works and Highways