State auditors have again flagged a road project in Davao City, adding to a series of infrastructure deals linked to the same contractor that the Commission on Audit (COA) has questioned for possible irregularities.
In a 16-page decision released on March 11, the COA en banc upheld a 2018 Notice of Disallowance against the P19.14-million rehabilitation and improvement project along the old circumferential road leading to the El Rio junction of the Davao City diversion road.
Auditors found that the project, implemented in 2010, far exceeded the allowable cost set by the Department of Public Works and Highways (DPWH).
COA said the project cost surpassed the P7.14-million allowable estimate by 167.95%, resulting in an overprice of nearly P12 million.
The project contractor, E. Gardiola Construction, is registered to the brother of Construction Workers Solidarity (CWS) Representative Edwin Gardiola.
COA has already flagged six other infrastructure projects involving the same contractor and has transmitted all seven cases to the Office of the Ombudsman for possible criminal investigation, raising concerns over project oversight and the handling of public funds in Davao City.
The audit commission held several officials and personnel of the DPWH Davao district office liable for the questioned project.
These include District Engineer Lorna Ricardo, Assistant District Engineer Milagros delos Reyes, engineers Dwight Vincent Fernandez, Eduardo Villar, and Lilibeth Sarmiento, estimating committee head Emilio Sucaldito, construction and maintenance foreman William Paglinawan, laboratory technician Rolly Tulayba, and contractor E. Gardiola Construction.
An audit team that reviewed the project uncovered major lapses in planning and construction. Auditors said the approved and as-built plans ignored DPWH standards and lacked key measurements and reference landmarks.
Inspectors also found substandard materials during site inspections, including rusted rails, bolts, nuts, and washers. They also noted that road signs and pavement studs failed to meet minimum quality requirements.
Those named in the audit findings asked COA to review the case, arguing that auditors denied them due process because the special audit report came out only after the Notice of Disallowance and auditors did not conduct an exit conference.
However, the COA en banc rejected the argument, saying the concerned parties received copies of the audit report and had the opportunity to challenge the notice and the COA-Region XI ruling through a petition for review.
“This Commission sustains the audit finding of price excessiveness, as this was supported by actual canvass sheets or price quotations,” COA said in its ruling.
The commission maintained the disallowance in the reduced amount of P10,803,148.50.*
Reymund Titong is a Filipino journalist steadily building his voice in the field of news reporting, driven by a commitment to tell meaningful and relevant stories.
He serves as a correspondent for Rappler, maintains a personal blog on Medium, and is the communications officer of Hope Builders Organization Negros Island.