The Commission on Audit has flagged the Quezon City government for P1.5 billion worth of unimplemented infrastructure and development projects last year.
The city government, for its part, told CoA that its observations and recommendations would be considered.
This developed as Quezon City Mayor Joy Belmonte issued Executive Order 2, creating the City Development Council to promote a harmonious relationship between the city government, the barangays, and non-government organizations to formulate development various programs and projects.
Based on COA’s 2018 audit report, the city government was able to accumulate P999 million worth of 28 suspended infrastructure projects and P559 million worth of either suspended, delayed, cancelled or otherwise unimplemented development projects.
At least 28 infrastructure projects worth P813 million were suspended due to variation order, while P10.6 million was not yet turned over to a school, state auditors said.
Other unfulfilled projects were due to revision of plans (P4.3 million), barangay order (P2.4 million), encroachment (P21 million) existing structures (P17 million), and Maynilad repairs and construction (P3 million).
“The implementation of these projects were suspended on grounds not provided in the Procurement Act, thus affecting the dates of completion and timely use of the facilities for public services,” the COA findings read.
The commission told the city government to review the grounds for the suspension of work of the 28 infrastructure projects to determine their propriety, consider issuing another order for the project resumption, and strictly comply with the requirements of procurement laws in suspending infrastructure projects.
On its development projects are concerned, the city government was not able to push through with or encountered a delay in 75 out of 142 planned projects, as 35 of these are ongoing worth P350 million, while 20 other projects have been suspended worth P95 million.
In addition, 18 more projects are not implemented worth P102 million, while two projects worth P10 million have been cancelled.
State auditors chided the city government for violation of the Department of the Interior and Local Government, and Department of Budget and Management's Joint Memorandum Circular No. 2017.
Under the order, all development projects to be funded under the 20 percent development fund should contribute to the attainment of desirable socio-economic development and environmental management outcomes of the LGU and shall partake the nature of investment or capital expenditures.
Earlier, new Mayor Joy Belmonte said she would create an internal audit service to ensure the compliance of the processes and documents from the administration of her predecessor, Herbert Bautista.
Bautista, in his farewell speech, said he was leaving the city government with a P26.5 billion in cash on hand and in bank as of May 31.
But Belmonte claimed otherwise, saying "this figure may sound impressive, but it behooves us to clarify where these funds are and how they can be used."
At least 275 infrastructure projects worth P5.6 billion were awarded to different contractors from January to May 2019. Belmonte, however, said she would only honor all the contracts from the past administration if they complied with existing laws, rules and regulations.
Meanwhile, the new mayor’s Executive Order 2 read: "There is a need to strengthen the CDC to make it a more effective institution in setting the direction for economic and social development and coordinating development efforts at the local level.”
The council is tasked to come up long-term, medium-term, and annual socio-economic development plans and policies as well as medium-term and annual investment program, and to prioritize socio-economic development programs and projects.
It shall also formulate local investment incentives to promote the inflow and directions of private investment capital, and coordinate, monitor, and evaluate the implementation of development programs.
The council is to be headed by Belmonte with all barangay leaders, the city council's chairperson of the committee on appropriations, lawmakers from the six districts and at least or over 36 representatives of non-government organizations as members.
The new city mayor earlier said her administration would undertake strategic planning and goal setting, such as sticking to the plans made by the CDC.
“We will serve with our heart but to hit our goals, we have to plan with our heads,” she said. Belmonte, through the city Department of Social Welfare and Development, also provided financial assistance to 57 families affected by a fire in Barangay Bahay Toro, Project 8.