COA tells PCG to blacklist, sue supplier-contractors over delays

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THE Commission on Audit has recommended that the Philippine Coast Guard (PCG) slap a battery of sanctions against erring suppliers and contractors that failed to meet completion deadlines for 92 construction projects worth P1.226 billion and delayed delivery of equipment and supplies amounting to P1.336 billion.

In the 2021 audit of PCG released last July 15, 2022, state auditors said 29 infrastructure projects worth P104.403 million were already delayed by three to eight years; 39 projects worth P463.116 million by two to three years; 19 projects worth P510.178 million by one to two years; and five projects worth P148.217 million by several months.

On the other hand, suppliers in 14 procurement contracts totaling P1,336,197,288.96 have defaulted on the agreed delivery date by 38 to 669 days.

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The audit team recommended that the PCG initiate blacklisting of erring contractors, collection of liquidated damages, and haul to court those who can no longer implement the construction projects.

Responding to the audit observations, the PCG said its Maritime Safety Services Command (MSSC) had made similar recommendations to initiate legal actions against contractors.

It added that the Contract Termination and Review Committee (CTRC) had recommended the termination of 57 out of 92 delayed projects with a total cost of P466.38 million, to be followed by blacklisting them from participating in future government contracts.

On the undelivered procurement, the PCG said it has turned down the request of a supplier for a time extension on the delivery of forty 11.5-meter high speed response boats, which is the agency’s biggest procurement transaction still pending at P1.196 billion. Records showed the contract was awarded in January 2019 and was supposed to have been completed as of January 2021.

The COA clarified that based on the review of the Agency Action Plan and Status of Implementation on top of interviews of PCG personnel, the delays were attributable to the contractor’s default.

“The audit team is concerned that if the PCG management does not act with urgency in the completion/full implementation of the 92 infrastructure projects, it will result in loss and wastage of public funds,” the COA said.

Also among the delayed procurement transactions of the PCG were the P63.48 million supply and installation of surveillance cameras on Pasig River; the P21.876 million rash guards and other operational equipment; and the P17.06 million purchase of office equipment for different PCG units.

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