State auditors have found that Senate President Franklin Drilon failed to liquidate P75 million of his Priority Development Assistance Fund (PDAF) or pork barrel that was used to fund the construction of 138 school buildings.
In a 264-page report on the Department of Public Works and Highways (DPWH) for 2012 released on Friday, the Commission on Audit (COA) said the allocation was released in three installments of P25 million.
Three checks for the school buildings with two classrooms each were issued on June 29, 2011, October 20, 2011 and December 29, 2011.
COA said the funds were transferred to the Federation of Filipino Chinese Chamber of Commerce and Industry Inc. (FFCCCII), a non-government organization.
According to the commission, former Sen. Richard Gordon also had P2.76 million unliquidated pork barrel funds that he also transferred to FFCCCII.
Auditors pointed out that the release of funds was done successively in 2011 despite FFCCCII’s inability to submit the Fund Utilization Report/Liquidation Reports, thus resulting in the accumulation of unliquidated funds.
They said the incident should prompt the DPWH to “reconsider its collaboration with the NGO in implementing infrastructure projects.”
The FFCCCII also failed to post the required performance security bond, the 20-percent equity and warranty security, auditors said, which means that the government is not protected against losses in case of default or poor performance of the contractor.
Auditors criticized the DPWH for being “lax” in the selection of the NGO.
COA said a DPWH Monitoring Report on February 28, showed that eight of the projects were still ongoing while 15 others have not been started.
“The audit team believed that validation as well as inspection of accomplishment can be done if appropriate liquidation reports supported with documentary evidence are available and submitted by management and FFCCCII. As of this writing, the funds remained unaccounted for,” COA said.