DepEd failed to insure schools, properties valued at P6.85B – COA

Public school buildings and other government properties valued at P6.85 billion are uninsured, according to a Commission on Audit (COA) report. 

 

Such properties that include division offices have not been insured with the General Insurance Fund of the Government Service Insurance System (GSIS) despite the mandate requiring all government properties to be insured, the commission said in a 2013 audit of the Department of Education (DepEd).

 

The report was uploaded on the COA website on March 31, 2015.

 

Fears of a possible 7.2-magnitude earthquake hitting Metro Manila and threats of deadlier typhoons because of the El Niño raise serious concerns over uninsured government properties. 

 

“School buildings,  and other school properties in four regions with total book value of P6,851,431,047.10 remained not insured with GSIS General Insurance Fund exposing these properties to unnecessary risk of not being indemnified for any damage or loss due to any fortuitous events such as  fire, earthquake, typhoon and / or flood,” according to the COA report published last March 

Weather conditions

 

Administrative Order No. 33 issued by the late President Corazon Aquino in 1987 states: “all heads of departments... shall secure from the General Insurance Fund directly, all insurances or bonds covering properties, contracts, rights of action and other insurable risks of their respective offices.” 

 

A 1992 COA circular likewise directs all department heads to submit an annual report on the inventory of all insurable physical assets to be verified by state auditors.

 

“In recent years, the weather conditions in the Philippines have drastically changed. Typhoon and flood continue to increase and become more frequent while earthquake is a risk that the country also has to face,” the COA said.  

 

“To protect these school structures and properties, Fire and Allied Perils Insurance must be secured from GSIS General Insurance Fund to cover loss or damage of the public school properties against catastrophic perils and guarantee immediate damage control, repair and replacement thereby reducing interruption of students learning process,” the report added. 

West Valley Fault

 

In an executive summary of the report, the commission said the uninsured school buildings and properties are in four regions. However, a detailed breakdown of schools and division offices showed 10 regions have properties which have yet to be insured. 

 

Specifically, the uninsured government assets are in the regions of Ilocos, Cagayan Valley, Central Luzon, MIMAROPA, Bicol, Western Visayas, Northern Mindanao, SOCCSKSARGEN, CARAGA, and National Capital Region (NCR). 

 

After agreeing with the COA findings, the DepEd management in Northern Mindanao has ordered all school heads to secure insurance from the GSIS, the commission noted. 

 

The amount of insurable properties in the NCR is P3.17 billion, comprising schools in Caloocan, Navotas, Malabon, Valenzuela and Parañaque. 

 

A part of Parañaque sits on top of the West Valley Fault (WVF). 

 

The WVF tends to move in 400-year intervals, according to Phivolcs, and could potentially trigger a magnitude 7.2 earthquake and devastate cities along the fault line. – Kathrina Charmaine Alvarez/VS, GMA News