TWO Cebu Technological University (CTU) buildings that cost a combined P30.92 million remain unusable years after their first phases were finished, with steel reinforcements exposed to the elements, the Commission on Audit (COA) said.
COA also found discrepancies between reported progress and actual site conditions in two campus projects. It flagged another building project worth more than P80 million at the state university’s main campus in Cebu City because its plans were too incomplete for technical auditors to evaluate.
State auditors said in their 2025 report that the two unusable buildings are the first phase of CTU Argao’s new administration building, which cost P14.97 million and was completed on February 20, 2023, and the first phase of the research center and hotel and management building at CTU Moalboal, which cost P15.95 million and was completed on January 5, 2022.
During an inspection, state auditors found that both buildings could not be used for their intended purposes.
“It was likewise observed that steel reinforcements and other structural components were exposed to the elements, rendering them susceptible to corrosion and deterioration,” read a portion of the findings.
University personnel told auditors that the second phase of both projects remains uncertain because of budget constraints.
COA said the arrangement ran counter to Section 54.1 of the Revised Implementing Rules and Regulations (IRR) of Republic Act 9184, the Government Procurement Reform Act. The rule requires each phase of a project built in stages to be usable and structurally sound. COA also cited Section 2 of Presidential Decree 1445, which requires government resources to be managed efficiently and protected from waste.
Bleachers not found
At CTU Carmen, a P4.975 million contract for the refurbishment of the university gym was reported 48 percent complete as of December 11, 2025. The university signed the contract on November 13, 2025, with a contractor COA did not name, referring to it only as E Company.
The joint inspection report dated December 12, placed the accomplishment at P2.31 million. That amount included P2.08 million worth of prefabricated movable bleachers.
When auditors inspected the campus on February 27, 2026, they found no bleachers inside the gym or anywhere on university grounds.
The campus accountant told COA that the bleachers had not been delivered. The accountant also said no payment had yet been made for the first progress billing. COA said the bleachers had still not been delivered as of the exit conference.
COA said the approval of the inspection report showed that the reported accomplishment was approved “without first verifying the actual existence and delivery” of the items.
It asked Carmen campus officials to explain why the report was approved. It also asked them to demand delivery of all the bleachers, valued at P4.33 million under the contract, and to compute and deduct liquidated damages from amounts due the contractor.
'100 percent complete'
At CTU Moalboal, the university reported the four-story smart building as 100 percent complete on December 16, 2025. The P14.9 million contract was awarded to a contractor COA did not identify, referring to it only as X Company.
During a February 26, 2026, inspection, auditors found that items worth P698,644.44 had not been installed. These included 15 outdoor CCTV cameras, a network video recorder, network switches and related equipment.
Auditors also noted a defective electrical outlet, an uninstalled door handle, concrete surfaces that needed restoration after pipe works, and unfinished provisions for electrical switches and data connections.
The project’s technical working group told COA that the camera and network items were no longer part of the scope of work. The group said they had been replaced by the construction of a drainage system at the back of the building.
COA noted, however, that the contractor’s own statement of work accomplished for September 14 to December 16, 2025, still listed the items. It found no sign that a variation order had been issued.
The reported status of the project “does not fully correspond with the actual condition” COA observed. State auditors recommended that the campus require the contractor to finish the remaining work and impose liquidated damages.
Incomplete plans
COA also said detailed engineering was not sufficiently carried out for the P87.07 million six-story science and technology building at the CTU Main Campus in Cebu City. Section 17.6 of the procurement law’s IRR bars the bidding and award of infrastructure contracts unless detailed engineering has been completed and approved.
The COA regional office’s Technical Audit Group returned the project documents to the audit team because it could not conduct a technical evaluation. It found mismatches between the university’s program of work and the contractor’s bill of materials. The original plans also lacked elevator specifications, structural details for the concrete piles and the canopy, a schedule of partition walls, and the locations of the floor finishes.
The audit team first raised the deficiencies with management on February 7, 2025. The university resubmitted the documents, which were forwarded to the technical auditors on July 2, 2025. According to the report, the new set did not resolve the problems and introduced others such as the plans had no sheet numbers, and the floor plans used gridlines different from those in the original set.
The gaps, the report said, “raise concerns as to how the winning bidder was able to prepare its bid proposal in the absence of a complete set of plans.”
Detailed engineering was also lacking in a P16.84 million contract for solar power, an LED wall, a large ceiling fan and audio-video and lighting systems at the main campus Gymnatorium, the audit found. After the contract was awarded, a variation order removed 94 solar panels from the project because the roof framing could not carry their weight. Auditors said the change “clearly indicates” that detailed engineering was not conducted before procurement.
Recommendations
COA asked the Planning and Development Office at the main campus to submit a complete set of original plans matching the program of work. It also asked the office to explain why the projects were procured without detailed engineering.
For the Argao and Moalboal buildings, COA recommended that the university evaluate whether to complete Phase 2 or revise the project plans, and prioritize funding so the buildings become functional.
COA also called for immediate steps to protect the structures, such as applying anti-rust coatings, covering exposed steel and maintaining site drainage. It asked the university to ensure detailed engineering and a clear delineation of work for every phase of future projects.
University’s response
According to the report, CTU management agreed to act on each of the findings.
For the Argao and Moalboal buildings, management agreed to have its Planning and Development Office evaluate whether to complete Phase 2 or revise the project plans, protect the exposed structures from further corrosion, and conduct detailed engineering for each phase of future projects.
At Carmen, management agreed to submit a letter justifying the approval of the inspection report despite the missing bleachers. It also agreed to demand delivery of the P4.33 million worth of bleachers from the supplier and to compute liquidated damages, which would be deducted from any money due to the contractor.
At Moalboal, management agreed to require the contractor to complete the unfinished work on the Smart Building and to impose liquidated damages once the work is delivered.
On the six-storey Science and Technology Building, management agreed to submit a complete set of original plans matching the program of work and to address the deficiencies raised by COA’s technical auditors. It also agreed, through the Planning and Development Office, to explain why the project was procured without sufficient detailed engineering. (KAL)