Mark Villar disputes COA report on ‘underspending’ DPWH

Public Works Secretary Mark Villar on Saturday disputed the Commission on Audit's (COA) report that the Department of Public Works and Highways (DPWH) underspent on the government's "Build, Build, Build" infrastructure program.

In its 2017 audit report on the DPWH, the COA said the DPWH allotted 92.19 percent or P610 billion of its P662-billion budget to government projects but only P222.66 billion or 33.6 percent was disbursed “due to the delayed/non-implementation of infrastructure projects."

Villar, however, pointed out that infrastructure projects are multi-year in nature and the disbursements cannot be released within one year.

"Maraming two or three-year projects, hindi mo naman madi-disburse in one year ang two-year projects kasi it's progress billing," the Cabinet official said.

Villar also vowed to fast-track the delivery of the government's infrastructure projects following President Rodrigo Duterte's warning that he will hold him accountable for delayed and failed projects.

"This year we're ahead in terms of infrastructure — 42-percent increase year-on-year. Malaki 'yung increase pero 'di naman perfect, we're still improving the system. Maganda naman 'yung progress natin," he said.

Data released by the Department of Budget and Management (DBM) showed infrastructure spending in the first five months of the year reached P280.8 billion, up 42.4 percent from P197.2 billion in the same comparable period. 

The surge in infrastructure spending and other capital outlays was a result of various infrastructure projects completed by the DPWH, including roads and bridges and flood control projects, according to the DBM.

In its comment to the COA report, the DPWH assured that no contract will be awarded in the future until all right of way issues have been settled.

The DPWH said the cost of government permits will also be included in the bill of quantities of future infrastructure projects to avoid delays.

Likewise, Villar said the department is now making adjustments for the 2019 cash-based budget.

Under a cash-based budgeting, the validity of the appropriation will be reduced to one year from two years in an obligation-based budget, with no carry-over provision, except for a three-month extended payment period in the following fiscal year to allow agencies to settle payments for goods and services delivered.

"So nag-adjust na kami sa planning, kailangan may right-of-way na 'yung project that year at kung magiging multi-year, meron kaming multi-year obligation budgetting ayun ang magiging entry multi-year obligation," the Cabinet official said. — MDM, GMA News