COA twits Cebu City for stalled ₱2.1-billion projects

Local

MORE than ₱2.1 billion worth of priority infrastructure projects in Cebu City failed to move forward in 2025.

The Commission on Audit (COA) flagged the city's poor utilization of its mandatory 20 percent Development Fund and warned that the delays hampered the delivery of key public programs and infrastructure.

The observation was contained in COA's 2025 Annual Audit Report on the City Government of Cebu, which showed that the city spent only P344.45 million, or 7.98 percent, of the P4.32 billion available appropriations under the Development Fund during the year.

Auditors traced the low utilization to the delayed or non-implementation of 41 priority infrastructure projects with a combined value of P2.112 billion.

According to COA, the projects stalled because of procurement delays, inadequate implementation readiness, and weaknesses in project realignment and execution.

The audit body stated that the delays heavily blocked Cebu City's ability to deliver its planned socio-economic programs, infrastructure projects, and development outcomes.

COA added that this failure violates guidelines set under Joint Memorandum Circular No. 2020-1, issued by the budget, finance, and local government departments.

The findings point to gaps in project preparation, with COA noting that several infrastructure projects were included in funding plans despite not being ready to proceed.

To prevent a repeat of the problem, auditors urged the city government, together with the Department of Engineering and Public Works (DEPW) and the City Planning and Development Office, to tighten the screening process before projects are funded.

COA recommended ensuring that only projects already prepared for procurement and implementation are included in the pipeline and suggested conducting additional validation measures, such as site inspections where practical, to identify potential issues before implementation begins.

The commission also pushed for a unified monitoring mechanism that would allow the city's implementing offices and Bids and Awards Committees to track projects from planning to procurement and construction through real-time updates.

Auditors likewise highlighted manpower and workload issues within the DEPW, recommending that the city consider outsourcing the preparation of programs of work for infrastructure projects, as allowed under Republic Act No. 9184, to help reduce backlogs and accelerate implementation.

COA further called for stronger validation and reporting procedures to ensure only projects with verified implementation status are considered for budget realignments.

It also said city officials should explain why projects that were already ongoing or completed appeared in lists for realignment and put safeguards in place to prevent similar cases.

The commission also reminded the city government to ensure project billboards carry accurate information to avoid misleading the public and to improve transparency in the implementation of development projects.

The findings are among several observations raised by COA in its annual audit of Cebu City's financial and operational performance for 2025, which examined how the local government implemented programs funded under its mandatory 20 percent Development Fund.(TGP)