Cebu province flagged over P143-million unsettled audit notices

Local

THE Commission on Audit (COA) has flagged over P143 million worth of questionable transactions in the Cebu Provincial Government, involving disallowed infrastructure projects and unsettled expenses spanning multiple administrations.

In a Statement of Audit Suspensions, Disallowances, and Charges (SASDC) dated July 3, 2025, COA Regional Office VII reported that unsettled audit notices amounted to P143,373,175.32 as of June 30, 2025.

The findings were addressed to Gov. Pamela Baricuatro and forwarded to provincial accountant Janet Guaren.

The total includes P17,016,185.46 in beginning balances from previous audits and P126,479,744.92 in long-standing disallowances.

A negative adjustment of P122,755.06 was recorded for the second quarter, reducing the suspension balance to P16,893,430.40. No new charges were issued during the period.

Most of the disallowances were tied to public works projects awarded between 2007 and 2015.

Contractors named in the report include Supreme ABF Construction & Supply Co. Inc., WTG Construction & Development Corp., and Beecartine Construction & Supply.

COA flagged multiple contracts awarded to these firms for lacking proper documentation or failing to comply with procurement laws.

Also named were several public officials, including former governor Hilario Davide III, who was held liable for P122,755.06 in unrecouped mobilization fees for the construction of the Bahay Pag-asa facility for children in conflict with the law in Naga City.

The amount was settled on March 21, 2024, and formally cleared in a Notice of Settlement issued on November 12, 2024.

Other individuals held liable in the same project included provincial treasurer Atty. Roy Salubre, former provincial accountant Marieto Ypil, provincial budget officer Danilo Rodas, provincial engineer Hector Jamora, and contractor Sydney Carcel of YES Construction.

The audit also listed disallowances involving former governor Gwendolyn Garcia, who was named in multiple notices for projects implemented in 2008, 2012, and 2013.

The SASDC did not specify how much of the total flagged amount has been appealed or remains under litigation.

The COA issues SASDCs quarterly as part of its mandate to enforce fiscal accountability among government agencies and ensure that public funds are properly spent.

Capitol answes

Cebu Provincial Administrator Ace Durano confirmed that Baricuatro received the COA report on July 14.

Durano said the disallowances cover provincial government transactions from 2013 to 2024, totaling over P126 million.

"Kinsa nakadawat atong kwartaha, kinahanglan euli. Mao nay meaning ana nga disallow,” he said.

Following the governor’s directive, Durano said the legal office has begun preparing letters to formally notify all recipients of the disallowed funds to return the money.

He added that Baricuatro gave the order during their meeting and that the legal team is already working on the matter.(MyTVCebu)