THE Commission on Audit (CoA) flagged the Bases Conversion and Development Authority (BCDA) over deficiencies in project planning, engineering, road right-of-way management and contract monitoring that delayed or led to the termination of seven infrastructure projects worth P7.91 billion.
“Deficiencies in planning, detailed engineering, road right-of-way management and contract monitoring resulted in delays, repeated extensions of time and the eventual termination of contract for seven BCDA infrastructure projects costing P7.91 billion,” CoA said in its 2025 audit report.
The audit agency said the deficiencies led to repeated deadline extensions and delayed the delivery of benefits to project beneficiaries. It cited violations of provisions of the revised implementing rules and regulations of the Government Procurement Reform Act.
CoA also flagged the BCDA’s approval of extension requests despite contractors’ failure to submit written applications within the required period.
“Extension of Time (EOT) requests were approved despite contractors’ failure to file their written requests within the mandatory period, while the corresponding liquidated damages were not computed and imposed on the delays not covered by valid and timely EOTs,” it said.
Auditors said the BCDA took 90 to 176 calendar days to process and approve some extension requests and failed to impose liquidated damages on delays not covered by valid extensions.
Separately, CoA flagged P22.325 million in uncollected lease receivables from the Association of Southeast Asian Nations Villas, which affected the state-run firm’s collection efforts.
The audit agency also cited deficiencies in the monitoring and maintenance of condominium and parking units allocated to the BCDA under joint venture agreements.
“BCDA’s allocated condominium and parking units were not properly maintained by the joint venture partners and were not adequately monitored by BCDA, thereby exposing these assets to risks of unauthorized use, compromised security, delayed disposition and ineffective property management,” CoA said.
Auditors said four parking units in McKinley Hill could not be accounted for during inspections.
Despite the findings, CoA issued an unmodified opinion on the fair presentation of the BCDA’s 2025 and 2024 financial statements.
The BCDA’s net income fell to P2.245 billion in 2025 from P15.695 billion a year earlier, according to the audit report.
Outstanding audit suspensions, disallowances and charges stood at P3.11 million as of Dec. 31, 2025. The BCDA also implemented or secured reconsideration of 62 of 77 audit recommendations from previous years. — Pexcel John Bacon