DPWH yet to collect P440M in advance payments for terminated infra projects

The Department of Public Works and Highways (DPWH) has yet to collect the P440 million worth of advance payments it made for projects which did not push through, the agency announced Tuesday.

During a Senate hearing, Public Works Assistant Secretary Marichu Palafox was asked to clarify the millions worth of advance payments it made to contractors.

The amount, as flagged by state auditors, was paid for 414 infrastructure projects which were either completed, rescinded, or terminated.

“Out of the P681.9 million unrecouped from contractors, P241 million was recouped as of July 31, leaving an unrecouped balance of P440 million. This will be recouped upon the presentation of their billings,” Palafox said.

The DPWH earlier attributed the delay to the late or non-submission of the contractor’s final billings and the necessary documentary requirements.

This comes as the Commission on Audit (COA) in its 2020 audit report found that the DPWH failed to collect P681.951 million in advance payments made to the contractors.

It also flagged the agency for over P339.105 million worth of technical issues noted in some 165 infrastructure projects across the country.

Under government procurement guidelines, the DPWH is mandated to recoup advance payments made to contractors should projects be terminated or rescinded.

The DPWH earlier in the hearing also said the delay in the rollout of some P108.3-billion worth of infrastructure projects was due to the COVID-19 pandemic. — RSJ, GMA News