MANILA — The Commission on Audit (COA) has reminded the local government of Mountain Province to make a thorough check of potential contractors after a blacklisted company almost bagged a P8.32-million irrigation project.

Post-audit of three small-scale irrigation projects of the province found that two were originally awarded to ADL General Construction in August 2023.  

However, the agreement was terminated after it was discovered that the company was on the Consolidated Blacklisting Report of the Government Procurement Policy Board (GPPB).

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"They only learned of the blacklisting when the GPPB system did not accept the name of the contractor on the award of another contract," the 2023 COA report said.

Reasons for the blacklisting of a company included "failure by the contractor to fully and faithfully comply with its contractual obligations without valid cause."

GPPB also cited poor performance or unsatisfactory quality and/or progress of work, and willful or deliberate abandonment of non-performance of the project.

A rebidding was done in July 2023 and the projects were awarded to Tawid Builders Corporation. The irrigation project was finished in September and November 2023.

COA warned the local government that awarding a project to a blacklisted company it can mean delayed or failed projects.

"Also, it will deprive qualified firms/ contractors in entering into a contract with the Province," the state auditor said.

The Mountain Province's bids and awards committee agreed with COA's recommendation to check the GPPB blacklisting report before it engages with any company on future projects.