COA: P2.83 billion in health facilities projects delayed or unimplemented

The Commission on Audit (COA) reported that at least P2.83 billion of the government’s 2023 Health Facilities Enhancement Program (HFEP) budget faced delays or were left unimplemented.

In its annual audit report for the Department of Health for 2023, state auditors said that of the P2.8 billion, P2.44 billion suffered delayed completion/implementation.

The delayed HFEP infrastructure projects are located in the following regions:

• Region 6 (Western Visayas): Two projects
• Region 9 (Zamboanga Peninsula): One project
• Region 11 (Davao Region): Two projects
• Region 12 (Soccsksargen): Three projects

Additionally, the unutilized funding for infrastructure projects in Regions 9, 11, and 12 amounted to P83.78 million.

One major unimplemented project, the Western Visayas Center for Health Development, accounted for P306.54 million.

The most significant non-utilized HFEP project funding was the P1.074 billion Southern Philippines Medical Center (SPMC) project in Davao City.

According to COA, the 2023 HFEP budget under the General Appropriations Act was intended for:

• Construction, upgrading, or expansion of government health facilities
• Purchase of hospital equipment and motor vehicles
• Prioritization of projects under the Universal Health Care Law and in Geographically Isolated and Disadvantaged Areas
• Upgrading of facilities for COVID-19 response

COA noted that delays and deficiencies have undermined the program’s objectives, depriving the public of the benefits these facilities were meant to provide.

The COA identified several reasons for delays, non-utilization, and non-implementation, including:

• Temporary work suspensions due to site accessibility issues and variation orders
• Danger from falling debris in areas with ongoing operations
• Uncompleted elevator shafts
• Delays in payment for delivery fees
• Existing structures that had not been removed
• Delayed release of mobilization funds and progress billing payments
• Abandonment of unfinished work by contractors
• Inadequate coordination and technical assistance by the HFEP Management Office

In response to COA’s findings, the Department of Health (DOH) committed to implementing the following recommendations:

• Strengthen monitoring of HFEP projects through regular evaluations, inspections, and monthly reports to address challenges and ensure timely completion.
• Prevent delays by adhering to contract timelines and avoiding numerous variation orders.
• Mandate regional office heads to resolve deficiencies affecting project implementation and utilization.

Meanwhile, the SPMC attributed its project delays to a suspension order issued on April 4, 2022, amid ongoing architectural, electrical, and mechanical work. These works remain unfinished. — DVM, GMA Integrated News