BY GEROME DALIPE IV
ILOILO City – The Commission on Audit (COA) has flagged the Iloilo Provincial Government for its failure to complete 68 development projects funded under the Local Government Support Fund – Support to Barangay Development Program (LGSF-SBDP).
These projects are part of the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) initiative.
As of December 31, 2023, the total remaining cost for these projects stood at P130.418 million, with 42 of them, worth P97.884 million, yet to receive funding.
COA raised concerns over these delays, which it said could hinder the intended benefits for local communities, particularly in areas targeted for development under the NTF-ELCAC program.
In its annual audit report, COA noted that such a situation is inconsistent with Item 5.2.1.b of DILG MC No. 2023-063, which mandates proper execution and funding for such programs.
As a result, the objectives and benefits of the program were not fully attained, leaving idle or non-operating projects vulnerable to deterioration and further delay.
As of Dec. 31, 2022, a total of P214.520 million was utilized or disbursed for 68 partially completed projects with a combined contract cost of P344.938 million.
This left a balance of P130.418 million needed to complete the projects, assuming there are no price increases.
According to the previous year’s audit report, the percentage of completion of these projects varied significantly, ranging from 0.35 percent to 99.6 percent.
The projects that were classified included the 38 fully operating projects, costing P162.562 million, seven partly operating projects, with a value of P13.568 million, and 23 non-operating projects, totaling P38.390 million.
Executive Order No. 70, issued on December 4, 2018, institutionalized the whole-of-nation approach to achieve inclusive and sustainable peace.
Section 1 of the order mandates that the government prioritize and coordinate the delivery of basic services and social development packages in conflict-affected areas and vulnerable communities.
The order also seeks to foster societal inclusivity and ensure active participation from all sectors of society in the country’s peace efforts.
In line with this, the Department of Interior and Local Government (DILG) issued a revised omnibus guideline on the monitoring and evaluation of projects funded under the Assistance to Local Government Units – Local Government Support Fund (ALGU-LGSF).
The guideline is outlined in DILG Memorandum Circular No. 2023-063, dated April 18, 2023. This circular includes specific provisions for the LGSF-Support to Barangay Development Program (LGSF-SBDP) under Item 4.4.6.
Particularly, Item 5.2.1.b of the circular emphasizes that local government units (LGUs) must commit to completing any remaining works using their own funds and issue a letter of commitment for ongoing projects that have not yet been completed.
In 2021, the Provincial Government received P720.000 million from the LGSF-SBDP of the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC).
This funding was allocated for the implementation of 165 projects in selected municipalities and barangays in Iloilo.
The projects included a variety of development initiatives such as farm-to-market roads, construction of school buildings, health stations, evacuation centers, water and sanitation systems, rural electrification, COVID-19-related projects, and agricultural and livelihood-related projects.
However, the fund was only valid for disbursement until December 31, 2022. By this date, a total of P523.098 million had been utilized and disbursed for 92 fully completed projects and 68 partially completed projects. The remaining unutilized funds were fully remitted to the Bureau of the Treasury (BTr) in CY 2023.
The focal person for Rural and Water Sanitation Projects reported that a significant number of water systems installed were not operational due to several challenges.
These included delayed procurement activities, the terrain of the location, changing weather conditions, and contractor delays.
Similarly, the focal person for Agri-Livelihood Projects mentioned that the livelihood facility (a building constructed for livelihood purposes) remained idle because the procurement of sewing machines — a key part of the program — was unsuccessful.
Despite being an approved program by the Department of the Interior and Local Government (DILG), the building was not repurposed for any other use.
Regarding rural electrification, health and evacuation centers, and other infrastructure projects, the focal person acknowledged the delays and explained that local funds were allocated to prioritize the completion of some of these projects.
Replying to the audit memorandum, Gov. Arthur Defensor Jr. assured the audit team that the Iloilo Provincial Government (IPG) would take the following actions to address the uncompleted projects.
Defensor vowed to fast-track the implementation of 42 uncompleted and funded projects from SB No.1 for CY 2023, with a focus on tracking procurement, project implementation, and completion.
He also assured that close project monitoring will be conducted by the Provincial Planning and Development Office (PPDO), with monthly reports from implementing offices like the Provincial Engineer’s Office (PEO) and Provincial Agriculture Office (PAO) to ensure progress.
The governor said that an engineering assessment will be conducted for the partially completed but non-operational projects, with recommendations to be provided by April 2024.
He added that consultations and dialogues will be held with the beneficiaries of the NTF-ELCAC projects to improve project implementation, to be completed by the first quarter of CY 2024.
During the exit conference, the Provincial Engineer explained that the overwhelming number of projects received with the ELCAC fund delayed the validation stage, as the DILG was still verifying the projects.
This held up the Detailed Engineering, resulting in delays. However, the Provincial Engineer confirmed their commitment to finishing the projects, particularly in remote and hard-to-reach locations, with the Governor’s full support for completing all engagements.
In the audit report, the COA also recommended to the governor to direct concerned offices/personnel to comply with the requirements of DILG MC No. 2023-063, particularly ensuring the commitment to allocate local funds and complete the projects as stipulated in the guidelines.
The governor also assured to hasten the completion of the projects funded from the LGSF-SBDP of the NTF-ELCAC to fully attain the objectives of the program and ensure the expected benefits are realized./PN
