The Department of Health (DOH) office in Manila. April 21, 2014. Jonathan Cellona, ABS-CBN News

MANILA — The Commission on Audit (COA) has flagged the Department of Health (DOH) for deficiencies in the implementation of its Health Facilities Enhancement Program (HFEP) worth P2.83 billion in 2023.

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In its annual audit report for the DOH, state auditors said there were delayed completion/implementation, unutilized infrastructure and unimplemented projects under the HFEP amounting to P2,831,125,982.56.

The approved budget for the 2023 HFEP allotted funds for the construction, upgrading, or expansion of government healthcare facilities, purchase of hospital equipment and motor vehicles, prioritization of projects under the Universal Healthcare Law and in Geographically Isolated and Disadvantaged Areas, as well as upgrading of facilities for COVID-19 response.

Of the P2.83 billion total flagged by COA, P2.44 billion was attributed to delayed completion/implementation of infrastructure projects.

►Region VI: Western Visayas

   •Two projects worth P739,050,000 and P80,998,947.80

►Region IX: Zamboanga Peninsula

   •One project worth P9,900,000

►Region XI: Davao Region

   •Two projects worth P44,198,911.40 and P1,074,561,495.79

►Region XII: SOCCSKSARGEN 

   •Three projects worth P55,034,402.26; P50 million; P387,058,738.09

COA likewise noted three projects in Zamboanga Peninsula, Davao Region and SOCCSKSARGEN worth P83.78 million.

The lone unimplemented project listed was the Western Visayas Center for Health Development (CHD) amounting to P306.54 million.

"The infrastructure projects were unimplemented due to the following: (a) failed biddings due to non-participation of contractors to projects located at GIDA; (b) site issues due to non-ownership of lot, persistent change of locations and leadership conflicting priorities at the LGUs; and (c) advent of natural calamities and COVID-19 pandemic," the report stated of the Western Visayas CHD.

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Among the reasons cited for the delays include temporary work suspension, termination of project due to huge negative slippage, danger from falling debris, challenging road and safety conditions, delay in payment of delivery fees, delayed release of mobilization fund and payments for progress billing, and numerous suspension orders.

"The foregoing deficiencies affected the benefits that the public could have derived from the immediate and maximum use of the said facilities and the non-attainment of the program objectives," the COA said.

In response, the DOH agreed to the following recommendations: 

• Require Head of HFEP Management Office to intensify monitoring of projects through regular and timely evaluation and inspection, monthly reports

• Prevent numerous variation orders

• Direct heads of the identified health facilities to immediately address the deficiencies that affect timely implementation and utilization

DEFICIENCIES IN PROCUREMENT, UTILIZATION OF EQUIPMENT

The audit team found deficiencies in the procurement and utilization of several equipment funded under the HFEP with an aggregate cost of P183,285,740.42.

The COA said the idle/unutilized and undelivered and uninstalled equipment "adversely affected" the HFEP's goal of improving access to quality health services.  

The idle/unutilized equipment were discovered in the Davao Center for Health Development amounting to P104,236,000.000. 

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The COA said the deficiency was due to the failure of local government units to comply with its obligations under the provisions of the Deeds of Donations, like licensing requirements and provision of manpower.

The Western Visayas CHD had undelivered and uninstalled equipment worth P79,049,740.42 due to the late release of the implementation guidelines and issuance of notice to proceed (NTPs). 

"Fifty six undelivered equipment from appropriations of CYs 2021-2022, while 81 projects were not yet delivered and were still in various stages of procurement due to late release of Implementation Guidelines and Issuance of NTPs," the COA said.

State auditors said the deficiencies identified "displayed poor strategic planning and inadequate monitoring by the agencies" which is against the policy of government to use resources appropriately. 

"Thus, the main goal of HFEP to improve the delivery of basic, essential, as well as specialized health services through the revitalization, rationalization, and upgrading of health facilities were not attained," the COA added. 

In response, the DOH agreed to direct the HFEP Regional Team head of Davao CHD to follow up with the concerned LGUs regarding its compliance with obligations and direct the Provincial Health Team Leaders to conduct proactive and regular monitoring. 

The HFEP Regional Team head of Western Visayas CHD is also ordered to direct concerned units to ensure timely procurement and deliveries of the equipment and regularly coordinate with the Regional Equipment Coordinator to address issues and concerns.

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