MANILA - The Commission on Audit (COA) said a total of P20.704 billion worth of contracts and projects of the National Irrigation Administration (NIA) incurred significant delays as proper planning and implementation were not strictly observed.

State auditors said in their annual audit report on the NIA that liquidated damages were not imposed on P12.245 billion worth of contracts with defaulting contractors. It also cited negative slippages being incurred in P9.039 billion worth of contracts.

Performance securities were also not forfeited in terminated contracts worth P2.2 billion and variation orders and contract time extensions were granted to contractors of projects amounting to P544.184 million, despite inadequate evaluation and incomplete documentation.

“Review disclosed that management had not been able to fully address the recurring issue on considerable delays in the implementation of NIA projects,” the COA report said.

Auditors noted that the Government Procurement Reform Act mandated the imposition of liquidated damages on contracts with more than 15 percent negative slippage.

“The damages suffered by the agency due to delayed/non-completion of the contracts/projects within the timelines may not be recovered due to non-imposition of liquidated damages and non-forfeiture of performance securities against the contractors, an indication of agency’s laxity in enforcing the stipulations specified in contract agreements to the disadvantage of the government,” the COA report said.

The NIA management, however, told auditors during the exit interview that there were factors involved in the delays such as rains which increased unworkable days as well as quarrying issues in Palawan and Quezon provinces.

The NIA also said it constantly reminded contractors about their respective projects.

“Contractors are also constantly being reminded to file their billing claims for their accomplishment so as to hasten disbursements through letters and the coordination meetings. Moreover, the contractors were informed that liquidated damages would be imposed once their billing claims are filed,” the NIA management told the auditors.

The audit report also mentioned that P4.345 billion contracts were awarded to bidders who had the lowest calculated bid but did not pass eligibility requirements.

The report noted that NIA Administrator Ricardo Visaya said during the exit conference that they are committed to take up the audit observations as among the agenda in the regional managers’ conference this year.

A copy of the audit report was received by Visaya’s office on July 31, 2019.

The full report on the audit of NIA can be downloaded from the COA website.