BY DAVE SUAN ALBARADO
The Commission on Audit (COA) has flagged the local government unit of Tagbilaran City for failing to implement six development projects worth P30,288,265.72 under the 20 percent Development Fund, citing fears over missed socio-economic benefits for residents.
According to COA’s Audit Observation Memorandum No. 2024-018 dated April 8, 2024 and released to the public domain in December 2024, the city government only utilized P101,803,277.00 or 75 percent of its total P136,138,368.52 allocation for the 20 percent Development Fund.
This left an unutilized balance of P34,335,091.52, with over P30 million tied to unimplemented projects.
NOT IMPLEMENTED
COA’s review revealed that six programs, projects, and activities (PPAs) intended for 2023 were not carried out, including infrastructure and environmental initiatives.
The stalled projects were:
Resource Recovery Facility (Multi-Purpose Shade) – P5,185,007.10; Material Recovery Facility (Extension of Sorting Building) – P1,314,743.59; Purchase of Backhoe – P14,000,000.00; Access Road – Resource Recovery Facility Site Development (Phase 1) – P6,809,715.03; Landscaping at Center Island, Rajah Sikatuna St. – P1,918,800.00; and Concreting of B. Inting corner Tamblot St. (Widening) – P1,000,000.00.
COA noted that the Department of Budget and Management, Department of the Interior and Local Government, and Department of Finance, through Joint Memorandum Circular No. 1 issued on November 4, 2020, require local government units to fully utilize the 20 percent Development Fund for projects that directly contribute to economic growth and public welfare.
The audit report pointed out that the non-implementation of these projects deprived the public of essential benefits, particularly in waste management, road access, and urban beautification.
COA further warned that delays could lead to higher costs due to inflation and rising prices of construction materials.
The report reiterated that City Mayor Jane Cajes-Yap and other officials are responsible for ensuring proper fund utilization and timely implementation of development projects under Joint Memorandum Circular No. 1 guidelines.
Meanwhile, the Tagbilaran City government acknowledged the funding shortfall and stated that some 2023 projects were completed in 2024.
These include: the purchase and delivery of the backhoe and the implementation of the access road project at the Resource Recovery Facility.
In response to COA’s findings, city officials agreed to ensure better planning and fund utilization moving forward.
They committed to only including ready-to-implement projects in the annual budget and adhering to procurement schedules to prevent further delays.
COA recommended that the city government fully utilize the 20 percent Development Fund as mandated, ensuring that local projects are properly planned and executed to maximize their impact on the people of Tagbilaran.