COA flags PPA over P6.58-million infinity pool at La Union training center

State auditors have flagged the Philippine Ports Authority (PPA) over the “unnecessary” construction of an infinity pool worth P6.58 million in its La Union training center compound (TCC).

In its 2020 audit report, the Commission on Audit (COA) said the infinity pool project totaled P10.84 million as it also involved the construction of a P3.43-million guest room, 400,432.15-peso pergola, and 419,912.75-peso decorative rock wall.

COA said the PPA justified that the improvements were made to increase customer influx and generate a higher non-traditional income.

State auditors pointed out, however, that the PPA had been incurring losses for the operations of the TCC and that there was no separate monitoring of the financial performance or operations of the compound.

COA also said the infinity pool, pergola, and rock wall were “more appropriate for tourism and recreational purposes, hence, are clearly not under the clout of the PPA,” while the additional room was “not necessary” since there were enough rooms.

COA said the TCC is unlikely to be regularly and properly maintained since the Port Management Office in Northern Luzon (PMO-NL) will be relocating to Ilocos Norte in 2022.

State auditors also said the PPA had no proof of ownership of the land on which the TCC stands and that the project caused the demolition of a portion of a perimeter fence and canopy, the cutting of several trees, and the removal of a shed and landscaping.

State auditors added that the safety of the properties, personnel, and guests is “compromised” due to an open area at the infinity pool.

“The above construction is considered unnecessary per COA Circular No. 2012- 003, thereby resulting in improper/wasteful spending of public funds, hence disallowable in audit,” COA said.

COA recommended that the PPA “hold the approving officers liable for the unnecessary expenditures.”

In response, the PPA told COA in an exit conference that the project was undertaken to avoid incurring higher costs of conducting meetings, training sessions, and conferences at expensive hotels.

The PMO-NL also maintained that the improvements would make the TCC ideal for team building and other similar activities and even celebrations like birthdays or weddings, which could generate additional revenue.

COA countered that if the PPA’s justifications were to be accepted, “then all government agencies, especially corporations, would be allowed to put up facilities and amenities as long as their budget permits, even if the uses or purposes of said projects are not within their mandates.”

State auditors also said that as for the PPA’s plan to increase rental fees, “even if it would result to a net income, would not address the issue of necessity. Hence, the Audit Team maintained its stand that said structures are not necessary.”

PPA response

In an interview on Super Radyo dzBB Wednesday afternoon, PPA General Manager Jay Santiago stressed that the pool is needed for the training of PPA personnel.

“Among doon sa mga exercises po at training na ginagawa nila ay ‘yun pong [Among the exercises and training that they do is] waterside safety and emergency response,” he explained.

Santiago added that the jacuzzi referred to by COA is merely a “recovery pool” that does not have the same features as a jacuzzi.

He expressed confidence that the PPA would be able to address the issues raised by COA, noting that Presidential Decree 857 states that the PPA shall conduct training activities and construct training facilities.

“Kumpiyansa naman po kami dahil buo po ang loob namin na wala pong nangyaring kahit na anong iregularidad diyan at reasonable po at tama lang po ‘yung naging proyekto,” he said.

(We are confident because we know that there are no irregularities there and that the project was reasonable and just right.)

Santiago also appealed to the public not to pass judgment on the PPA for now.

“Maaaring nagkaroon lang po ng misinterpretasyon doon po sa assessment siguro no’ng auditor pero ina-assure po natin na, number one, hindi po nawaldas ang pera ng bayan diyan at meron pong paggagamitan po niyan na wasto at sapat,” he said.

(It’s possible that there was misinterpretation in the auditor’s assessment but we assure you that, number, there were no public funds wasted and that the project will be used properly.) — NB/RSJ, GMA News