COA: Three-year delay sufficient basis to terminate P407M NAIA-CCTV project

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THE Commission on Audit (COA) has questioned the Manila International Airport Authority (MIAA) for its failure to terminate the P407.38 million closed-circuit television (CCTV) project at the Ninoy Aquino International Airport (NAIA) despite missing the completion target by more than three years.

In the 2023 audit of the MIAA, government auditors noted that the NAIA CCTV Project was awarded on September 19, 2019 and was supposed to be completed within three months or by January 16, 2020.

According to the plan, 1,682 security surveillance cameras would be installed and monitored at a Central Command Center at the NAIA Terminal 2 along with a data storage facility.

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Among the areas tagged as critical to the CCTV network were Terminals 1 to 4, the terminal parking areas, vehicle checkpoints at the approach to the terminals, the Airport Police Department Headquarters, and other vital facilities and areas.

As of yearend 2023 or more than four years after the execution of the contract, the COA revealed that the MIAA has not yet given it a copy, along with other supporting documents.

As January 16, 2020 drew closer, the contractor was granted a first extension of up to March 12, 2020.

Citing the COVID-19 pandemic, the completion date was reset a second time, this time by an additional five months or until August 18, 2020.

When that date also became unattainable, the target was moved again to October 31, 2020.

“Despite the approved extension, the Contractor was not able to complete the project. Thus, liquidated damages were imposed on the contractor starting November 1, 2020,” the audit team said.

A review of the transaction showed the MIAA has released payment on the six billings from the contractor totaling P306.26 million. The contract cost was reduced to P390.69 million in January 2021 after the Metropolitan Manila Development Authority (MMDA) refused to yield control of three signalized intersections at the NAIA to MIAA.

Liquidated damages imposed against the contractor stand at P12.5 million.

“Based on the foregoing information, the contract should have been rescinded/terminated by MIAA for failure to complete the remaining 21.61 percent of the project,” the COA said.

That option is supported by Clause No. 23.1(a) of the General Conditions of the Contract between the MIAA and the supplier as well as the Revised Implementing Rules and Regulations (RIRR) of the Government Procurement Reform Act (RA 9184).

 COA required the MIAA to submit its justification for failing to take steps to terminate the contract despite delays totaling three years and two months (as of 2023), and to submit a copy of the contract and all supporting documents for audit evaluation.In its reply to the audit findings, the MIAA management said the matter had been referred to its Legal Office for guidance as to how to undertake contract termination.

However, the contract documents were still not submitted.

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