The Commission on Audit flagged the Lapu-Lapu City Government for failing to enforce sanctions on contractors of four infrastructure projects totaling ₱64.92 million with negative slippages exceeding 15 percent.
State auditors identified overlapping projects, shared equipment, and shared personnel among contractors, while recommending contract termination, stronger monitoring, and administrative sanctions where warranted.
The City Engineering Office reported terminating the Bankal projects and cited weather and earthquake delays for others, while the BAC enhanced post-qualification checks following COA's recommendations.
THE Commission on Audit (COA) flagged the Lapu-Lapu City Government for failing to enforce available contractual and administrative sanctions against contractors of four infrastructure projects that incurred a negative slippage of at least 15 percent in 2025.
The projects, funded through the Special Education Fund and Local Development Fund, had a combined contract cost of P64.92 million, according to the 2025 audit report.
Sanctions
The projects included the P59.24-million rehabilitation of the road and drainage system at Jorge Tampus Road in Barangay Basak, which was 60 percent complete as of Dec. 31, 2025, with an 18-percent negative slippage based on COA’s computation.
Also flagged were the P2.99-million repair of classrooms at Nemesio Epifania Taneo Memorial National High School Senior High in Tingo, Olango, which was 40 percent complete with a 15-percent negative slippage, and two Bankal Night High School classroom repair projects worth P973,888 and P1.71 million, both 20 percent complete with 80-percent negative slippage.
Two of the projects were granted a time extension or suspension order, but the contractors still failed to meet the revised target dates, COA said.
Evaluation
Under the 2016 Revised Implementing Rules and Regulations of Republic Act 9184, a procuring entity may terminate a contract for default when negative slippage reaches 15 percent or more due to the contractor’s fault. COA also cited provisions allowing unfinished work to be given to another contractor and administrative sanctions, including suspension from bidding.
Auditors found that two contractors had overlapping projects and shared equipment and key personnel, which may have contributed to delays.
City’s response
The City Engineering Office (CEO) said slippage is monitored and contractors must submit catch-up plans once it hits 10 percent. COA said the four projects had already reached the threshold where termination could have been considered, subject to proof of contractor fault. Seven other projects had 11-to-14-percent slippage.
COA warned that repeated delays by the same contractor, along with continual new awards, risk weakening accountability. It recommended stronger monitoring and reporting to the Bids and Awards Committee (BAC), better contractor evaluation, and termination and sanctions when warranted.
The CEO said the Bankal projects were already being terminated. For Jorge Tampus Road, it said an unreported time extension moved the target to March 28, 2026, resulting in 11-percent slippage. It blamed the Taneo delay on bad weather and the magnitude 6.9 earthquake. COA maintained its figures, saying the city’s computation did not fully account for suspensions and extensions.
The BAC said monitoring and termination fall under the implementing office and that, absent a default finding, it awarded to the lowest bidder. It has since enhanced post-qualification checks. COA acknowledged this but urged a formal reporting system between implementing offices and the BAC. / DPC