GOVERNMENT auditors have slammed the three-year delay in the completion of the P106.405 million Real Fish Port-Phase 2 project in Quezon province that was supposed to have been turned over by the contractor to the Philippine Fisheries Development Authority (PFDA) way back in 2019.
The Commission on Audit pinned the blame squarely on the PFDA’s “non-issuance of a notice of decision on termination of contract” as mandated under the Revised Implementing Rules and Regulations (RIRR) of RA 9184 or the Government Procurement Reform Act.
The audit team noted that construction of the port project broke ground on January 29, 2018 and the contract set a target completion date on April 19, 2019 but the Department of Labor and Employment (DOLE) issued a work stoppage order dated November 26, 2019 following the death of a laborer.
The DOLE directive cited unsafe practices in violation of the Occupational Safety and Health Standards.
A notice to terminate (the) contract was issued by the PFDA on January 27, 2020 after negative slippage reached 58.22 percent, citing shortage of construction materials, manpower, and equipment of the contractor.
The contractor pleaded for an extension with a commitment that it will submit a verified position paper and expressed its intention to see the project to its completion.
But as of December 31, 2021, the PFDA still has not made any significant action whether to terminate the contract or to collect liquidated damages.
The division head of the Project Planning and Engineering Division (PPED) and the engineer of the Construction Management Division (CMD) explained that the PFDA is wedged tight in a corner.
Both officials explained that it is to the advantage of PFDA to allow the contractor to continue working and finish the project.
Citing the sudden spike in the cost of materials, however, the PPED and CMD engineer noted that the cost estimate to complete the project is “already impossible,” while rebidding the project to other contractors would require increasing the budget.
“Further delay in the completion of the Construction of Real Fish Port-Phase 2 due to the indecisiveness if the PFDA management …exposes the idle project to deterioration due to wear and tear, or wastage of government funds and deprives the intended users of the early benefits,” the COA said.
