* The Commission on Audit reported that the Carmen Municipal Government in northern Cebu accepted a P7.12 million CCTV system despite 22 of 65 cameras being non-functioning during inspection.
* State auditors stated the Nov. 5, 2025 final acceptance violated RA 9184 rules, put government funds at risk, and questioned a doubtful 48-hour progress jump during non-working holidays.
* The Municipal Engineering Office attributed non-functional cameras to typhoon damage, stating the contractor has since reinstalled, repaired, and restored all 65 verified units to working condition under warranty.
THE Carmen Municipal Government in northern Cebu accepted a P7.12 million closed-circuit television (CCTV) system despite multiple non-functioning cameras, the Commission on Audit (COA) said in its report.
The system was inspected on Feb. 13, 2026, and state auditors found 22 of the 65 cameras were not working. State auditors’ inspection happened three months after the Municipality’s final acceptance of the project’s Phase 2.
COA, in its findings, said the acceptance on Nov. 5, 2025 violated Section 62 of the 2016 revised implementing rules of Republic Act 9184, or the Government Procurement Reform Act.
The project, which had a contract price of P7,115,694.42, had been fully paid, with the third and final payment of P933,585.76 released on Jan. 19, 2026.
COA said accepting the project despite defects effectively waived the contractor’s warranty, putting government funds at risk.
Completion records
COA also questioned the project’s completion timeline. Progress reports dated Oct. 31, 2024, showed the project was 86.88 percent complete, but subsequent reports indicated it had reached 100 percent by Nov. 2, 2024, a jump within 48 hours. COA called the increase “highly doubtful,” noting that Nov. 1 and 2 were special non-working holidays.
State auditors also said the final acceptance on Nov. 5, 2025, shortened the contractor’s one-year defects liability period. Based on the approved extension and revised completion date, the period should have run until Feb. 2, 2026.
During its inspection at the command center, COA found blank camera feeds and error signals. Auditors could verify only 60 of the 65 units paid for, and personnel failed to provide a sufficient explanation for the five unaccounted-for units.
COA recommended that the Office of the Mayor and the MEO explain the basis for the reported jump in project accomplishment, the date of the completion certificate and the final acceptance. It also asked them to account for the five units and consider enforcing the warranty provisions by requiring the contractor to repair, replace or restore defective or missing units at no cost to the government.
Engineering office’s response
MEO said the accomplishment figures came from contractor-submitted reports that were evaluated “in good faith.” It attributed the date inconsistencies to “administrative lapses” in reflecting the approved extension and said an internal review was ongoing. The certificate of completion was also under administrative evaluation.
The office said the nonfunctional cameras were initially considered operational but were later found damaged by typhoon Tino (Kalmaegi), which struck Cebu on Nov. 4, 2025. COA’s report, however, attributed the damage to an earthquake on Sept. 30, 2025. The office said the contractor had been directed to repair or replace all affected units at no cost under the warranty.
Regarding the camera count, the office said all 65 units had been installed. Some cameras, particularly those in Barangay Luyang, were temporarily removed by the contractor for maintenance without the engineer’s knowledge, while another unit was not inspected because of site access restrictions.
The office said all units had since been verified, reinstalled and restored to working condition. A physical inventory and reconciliation were ongoing.
COA acknowledged the explanation and asked the office to keep auditors informed of the inventory results, including any adjustments. / KAL