Latest news with #CommissiononAudit
The Star
a day ago
- Business
- The Star
Philippine flood control works get ‘fraud audit'
MANILA: Setting the wheels in motion on the President's commitment to go after unscrupulous contractors, the Commission on Audit (COA) has ordered an immediate fraud audit of all flood-control projects in Bulacan province, which received the largest share of funding in Central Luzon from 2022 to 2025. In a memorandum dated Aug. 12, COA Chair Gamaliel Cordoba cited findings from the 'Sumbong sa Pangulo' website, which showed that the Department of Public Works and Highways (DPWH) implemented P548 billion (US$9.6 billion) worth of flood control projects nationwide from the start of the Marcos administration on July 1, 2022, until May 30 this year. Of this amount, Cordoba said Central Luzon received P98 billion, or 18 per cent of the total, with Bulacan cornering the biggest chunk at P44 billion, or 45 per cent. 'Given the critical issues raised by President Ferdinand R. Marcos Jr. regarding the implementation of these projects, particularly in the Province of Bulacan, a fraud audit is an immediate and unequivocal necessity,' Cordoba said. He directed supervising auditors or audit team leaders in DPWH district engineering offices in Central Luzon to submit all relevant documents in their hands to the Fraud Audit Office. He also ordered them to 'ensure [their] availability to assist the fraud audit teams at any time during the audit.' The memorandum, made public during the weekend, came days after Marcos inspected a botched P96.4-million dike rehabilitation project in Calumpit, Bulacan, on Aug. 15. The COA's action also follows the administration's ongoing investigation of all 9,855 flood control projects implemented by the DPWH since 2022. Earlier last week, the President unveiled a database of these projects through the 'Sumbong sa Pangulo' online portal, which allows the public to submit reports on the status of flood mitigation measures in their areas. One of the most significant findings so far is that 15 of the 2,409 accredited contractors bagged P100 billion worth of big-ticket projects, equivalent to 18 per cent of the entire budget since Marcos took office. An Inquirer analysis also revealed that one of these top contractors, the MG Samidan Construction and Development Corp., had a paid-up capital of only P250,000 but bagged P5 billion worth of flood-control deals in the past three years. According to the National Adaptation Plan of the Philippines 2023-2025, the most flood-prone areas in the country are Pampanga, Nueva Ecija, Pangasinan, Tarlac, Bulacan, Metro Manila, Maguindanao, North Cotabato, Oriental Mindoro and Ilocos Norte. The document also showed that Bulacan topped the list of provinces with the most flood control projects at 668, followed by Cebu (414), Isabela (341), Pangasinan (313), and Pampanga (292). Completing the top 10 are Albay (273), Leyte (262), Tarlac (258), Camarines Sur (252), and Ilocos Norte (224). Meanwhile, former Senate President Franklin Drilon on Sunday said that independent agencies, and not Congress, should take the lead in investigating the projects. In an interview with radio dzBB, Drilon said he doubts whether Congress can credibly investigate the multi-billion flood-control deals. 'The [COA] and the Ombudsman should take the lead,' he said. 'The COA's function is to exact accountability, while the Ombudsman is the agency that files anti-graft cases.' 'For me, without casting aspersions, what's difficult is that people won't believe the result of [a congressional] investigation, because these are the same people, right? Because whatever you say, the congressmen and the senators…they are the ones who place [budget] insertions, then they will also be the one to investigate?' he said. Flood control has emerged as one of the fastest-growing items in the national budget. The allocation stands at P346.6 billion under the 2025 General Appropriations Act and P224.8 billion in 2024, or roughly P590 billion in just two years. Under the recently-submitted 2026 National Expenditures Program, the allocation for flood control projects is P275 billion, Drilon said. By comparison, the allocation for flood control projects in 2016—the last year of the Aquino administration—was P64.2 billion, according to the former Senate leader, who previously chaired the Senate committee on finance. 'The current budget is about five times higher than that figure,' he noted. Drilon also called for the abolition of district engineers in the DPWH, saying their functions only duplicate those of regional directors. 'The truth is, the district engineer ignores the regional director. The usual excuse — this is the money of a congressman, this is the money of a senator. This means they should no longer interfere,' he said. Last week, Baguio City Mayor Benjamin Magalong also underscored the importance of creating an independent body to probe flood-control projects. 'What is important here is the creation of an investigating body [because] it cannot be Congress who would investigate. What even is the use of the words 'You should be ashamed?,'' Magalong said. 'The message of the President was directed to those in Congress, meaning the anomalies he saw were inside the Congress. So, what is their moral ascendency to conduct an investigation?' - Philippine Daily Inquirer/ANN
GMA Network
2 days ago
- Business
- GMA Network
COA orders fraud audit on Bulacan flood control projects
The Commission on Audit (COA) has ordered a fraud audit of the flood control projects in the Bulacan province, which was hit by the recent floods, in a bid to seek accountability for failed projects across the country. Under a memorandum ordered by COA chairperson Gamaliel Cordoba, all supervising auditors and audit team leaders of the Department of Public Works and Highways (DPWH) District Offices in Region 3 are mandated to submit all relevant documents necessary for the fraud audit. They are also ordered to ensure their availability to assist the fraud audit teams at any time during the audit. 'Given the critical issues raised by President Ferdinand R. Marcos Jr. regarding the implementation of these projects, particularly in the Province in Bulacan, a fraud audit is an immediate and unequivocal necessity,' COA said in a memo issued on August 12. The order covers flood control projects of the Department of Public Works and HIghways (DPWH) in the province, which received P44 billion for flood control projects, accounting for the biggest share of funding in Region 3 with 45%. According to Cordoba, the audit is in line with President Ferdinand 'Bongbong' Marcos Jr.'s move to investigate alleged anomalies in the government's flood control programs amid persistent flooding across the country. This comes as Marcos during his State of the Nation Address (SONA) last July, warned government personnel who steal public funds — such as those for flood control projects — to have some shame. Just last week the President launched the website on flood control projects. He said 20% of the P545-billion budget for flood control projects was awarded to only 15% of contractors, five of whom have contracts across the country. He is also seeking explanation from St. Timothy Construction Corp. regarding its supposed failed flood control project in Calumpit Bulacan, which was hit by floods, with residents of several barangays forced to wade through floodwater for at least two weeks. — Jon Viktor Cabuenas/RF, GMA Integrated News
Filipino Times
08-08-2025
- Business
- Filipino Times
Hontiveros flags SEC unregistered GSIS investment in online gambling firm
Senator Risa Hontiveros said the Government Service Insurance System's (GSIS) P1-billion investment in an online gambling platform was not registered with the Securities and Exchange Commission (SEC) at the time of the transaction. 'Napag-alaman naming hindi rehistrado sa SEC 'yung mga shares sa petsang nagkaroon ng kasunduan at binili 'yan,' Hontiveros told GMA Integrated News' Unang Balita. Her statement came after GSIS defended the investment, saying its social insurance fund 'remains strong, secure, and actuarially sound.' The agency reported total assets of P1.88 trillion and a net operating income of P76.82 billion as of June, a 31% increase from the same period last year. It also said it has maintained a five-year average return on investments of 6.75%. Hontiveros, however, cited a Commission on Audit warning that such investments could endanger the actuarial life of GSIS or the pension funds of government employees. 'Mismong ang Commission on Audit ang nagbabala na sa ganiyang mga investment ng GSIS, in fact, nanganganib 'yung actuarial life ng GSIS o ng pension funds ng ating mga government employees,' she added. The senator said she looks forward to GSIS' cooperation in a planned Senate inquiry into the matter. She first raised the issue in a privilege speech on Tuesday. Hontiveros also said she has filed a bill seeking strict regulation of online gambling, including provisions banning e-wallet and super app links to gambling platforms, and prohibiting advertising of online gambling on all media and in public spaces.
GMA Network
08-08-2025
- Business
- GMA Network
Hontiveros: GSIS' P1-B online gambling investment not SEC-registered
Senator Risa Hontiveros on Friday said the P1 billion investment of the Government Service Insurance System in an online gambling platform was not registered with the Securities and Exchange Commission. 'Naku po, napag-alaman na naming una na hindi rehistrado sa SEC 'yung mga shares na 'yun sa petsang nagkaroon ng kasunduan at talagang binili 'yan,' Hontiveros told GMA Integrated News' Unang Balita in an interview. (We already found out that those shares were not registered with the SEC on the date the agreement was made and they were actually bought.) This was in response to the statement of the GSIS explaining its online gambling investment. The GSIS on Monday said that its social insurance fund 'remains strong, secure, and actuarially sound.' According to GSIS, the social insurance institution for government employees, as of June, has total assets of P1.88 trillion and recorded a Net Operating Income of P76.82 billion, representing a 31% increase compared to the same period last year. The GSIS said it has consistently enjoyed a five-year average return on investments at 6.75%.' However, Hontiveros said, 'Mismong ang Commission on Audit ang nagbabala na sa ganiyang mga investment ng GSIS, in fact, nanganganib 'yung actuarial life ng GSIS o ng pension funds ng ating mga government employees.' (The Commission on Audit itself warned that such investments by GSIS, in fact, endanger the actuarial life of GSIS or the pension funds of our government employees.) 'Higit pa nga d'yan sa actuarial life, ay hindi talaga daw in-exercise ng GSIS 'yung fiduciary responsibility sa paghawak nila ng pondo ng ating government employees,' she added. (More than just actuarial life, GSIS has not really exercised its fiduciary responsibility in handling the funds of our government employees.) Hontiveros said that she is looking forward to GSIS' cooperation in the planned Senate probe into the issue. GMA News Online reached out to GSIS for comment and will publish it once available. The senator first addressed the GSIS' online gambling investment during her privilege speech on Tuesday. Meanwhile, Hontiveros said she has filed a bill for a strict regulation of online gambling. 'Pagdating po sa online sugal, naghain po ako ng aking panukalang kontra e-sugal na nagsusulong ng pinakastriktong regulasyon diyan sa online gambling,' she said. (When it comes to online gambling, I have filed an anti-e-gambling bill that advocates for the strictest regulation of online gambling.) 'Pangunahin na doon sa probisyon na putulin dapat, bawal dapat 'yung koneksyon sa online gambling ng ating mga e-wallet at superapps dahil nga hindi casino ang ating mga cellphones. At pangunahin ding probisyon bawal ang advertising para sa online gambling whether sa tri-media, sa social media, o sa mga public places,' she added. (The main provision is that our e-wallets and superapps should not be connected to online gambling or it should be cut off, it should be prohibited because our cellphones are not casinos. And the main provision is that advertising for online gambling is prohibited whether in tri-media, in social media, or in public places.) —AOL, GMA Integrated News
GMA Network
31-07-2025
- Politics
- GMA Network
Ex-Palawan gov Reyes guilty of Malampaya fund mess —Sandiganbayan
The Sandiganbayan has found former Palawan governor Mario Joel Reyes and his provincial planning and development coordinator Samuel Madamba II guilty of 11 counts of graft in connection with misuse of some P1.53 billion in royalties from the Malampaya gas field in 2009. In a 625-page decision, the anti-graft court sentenced Reyes and Madamba to six to 10 years in prison per graft conviction or a total of at least 66 years of jail time. The P1.53 billion worth of Malampaya gas field royalties were allegedly spent on school buildings, the San Vicente Airport Development Project, road projects, solar home system, and a day care center. "There is manifest partiality when accused Reyes, as HoPE (Head of Procuring Entity), improperly evaluated the bid proposals, leading to the award of numerous or overlapping contracts to a single contractor with one set of key personnel," the anti-graft court said. "Accused Reyes approved contracts that awarded multiple projects to a single contractor while being fully aware that these projects required the contractor's presence at specific times that conflicted with other projects. This act indicates a clear, notorious, or plain inclination or predilection to favor one side or one person rather than another, which the Anti-Graft Law categorizes and punishes as manifest partiality," it added. Based on documentary evidence presented before them, including the contracts awarded to the same contractor for overlapping projects and the Commission on Audit report, the Sandiganbayan ruled that there was "a clear violation of contractual obligations." "For one, it is logically impossible for the same key personnel to be involved in all these projects at once, given their different locations which are far apart from each other. Although the towns and areas belong to only one province (Palawan), the Court takes judicial notice that these towns are not really geographically located in one single island," it said. "Additionally, the contractors failed to update or submit revised lists of key personnel for the overlapping projects," the anti-graft court said. The Sandiganbayan also said that Reyes and Madamba, who was then BAC secretary, failed to publicly post the bidding for the subject government contracts due to "neglect and utter lack of effort." While Reyes posted bail in these cases, the court said the ex-Palawan governor failed to appear or present any evidence to dispute the evidence presented by the prosecution. "His (Reyes) failure to be present and adduce evidence could indeed be considered as a waiver of his constitutional right to defend himself and confront the witnesses against him," the Sandiganbayan said. Madamba, for his part, defended himself by arguing that he only failed to properly register the invitation to bid on the Philippine Government Electronic Procurement System (PhilGEPS) because of a former contractual employee's failure to provide a password and to the poor internet connection in Palawan before 2010. The Sandiganbayan, however, says this defense rings hollow absent evidence. "Not a shred of evidence was offered to prove these allegations. Thus, the basic rule applies that, a mere allegation is not evidence and is not equivalent to proof," it said. "Besides, there were available alternative options provided by the Government Procurement Policy Board to ensure mandatory posting, such as contacting the PhilGEPS division for assistance, fax the documents for posting, or utilizing internet cafes. This noncompliance with these posting requirements led to limited participation in the bidding process, as evidenced by the COA Audit Report which showed only one bidder for 65 projects and two bidders for 139 projects," it added. —AOL, GMA Integrated News
