GOVERNMENT auditors want the Digos City government to explain delays and procedural violations in a P30-million sanitary land fill project and a P12.26-million public market building.
The 2019 audit on the city released last May 15 noted that the landfill project has been discontinued due to the failure of the contractor to comply with the timetable, incurring negative slippage totaling 63.47 before the contract was eventually terminated.
The contract, funded from a long-term loan drawn from the Development Bank of the Philippines, was awarded on October 12, 2018 to AGRF Builders and Supply with the completion date pegged at September 3, 2019.
With an unfinished landfill on one hand and tons of rotting garbage on another, the city government was left with no recourse but to continue operating a dumpsite located in a six-hectare property in Purok Maligaya, Barangay Lungag.
The COA said the practice is contrary to the provisions and the implementing rules and regulations of RA 9003 or the Ecological Solid Waste Management Law.
During a site inspection, auditors reported that the dumpsite was poorly maintained, making it a potential health risk to communities and establishments nearby.
“Foul odor was widespread in the dumpsite thus posing hazards on the health of the employees in workplaces situated in the same location and to people coming to and from the area,” the audit team reported.
It said the dumpsite is infested by clouds of flies that are “potential carriers of contagious diseases.” Likewise noted was the absence of proper drainage and runoff control.
Acting community environment and natural resources officer Allen Melendrez informed the auditors that the local government has approved a “safe closure and rehabilitation plan” for the dumpsite but it would cost another P9.86 million.
Before that can happen, however, the LGU must first find another contractor that can continue the unfinished work on the landfill project. The CENRO gave assurances that the city will have a working landfill before the end of 2020.
“With due consideration on the City’s efforts in the eventual establishment of the facility, (it) should be reminded that the operation of an open dumpsite is nevertheless a clear violation of Republic Act 9003. Aside from violating the law …the controlled dumpsite poses inevitable serious impacts on the environment while exposing the constituents to health risks,” the COA pointed out.
The audit team recommended that the city impose liquidated damages totaling P476,855 against the contractor of the P12.26 million public market building (dry section phase 1) due to delays in the construction and delivery of the structure.
Auditors noted that the local government granted five extensions to the contractor but failed to protect the interest of the city by exercising its right under RA 9184 or the Government Procurement Reform Law.
They noted that the contract was awarded to Kriz Karlo Construction on February 9, 2018 with a completion target within 180 days or up to Aug. 18, 2018.
However, the target completion date was moved five times to Oct. 7, 2018 (50 days), Dec. 20, 2018 (75 days), Feb. 3, 2019 (45 days), Feb. 10, 2019 (7 days), and June 30, 2019 (140 days).
Among the grounds cited in the requests for extension were lack of skilled workers, scarcity of sand and gravel, inclement weather, and losing workers to bigger companies.
Auditors noted that even after the delivery of the structure, it remained unusable because it was only in the first phase and another contractor needs to work on plumbing, electrical installations, and other facilities.
The city government responded that it will implement the COA’s recommendation to impose liquidated damages which was already provided in the contract and may be deducted from the contractor’s collectible from the LGU.
