COA recommends to LRTA blacklisting of contractors with delayed projects

The Commission on Audit (COA) has recommended to the Light Rail Transit Authority (LRTA) to blacklist contractors that failed to deliver awarded projects at the given deadline.

In its 2021 financial audit report, COA said  59% or 13 out of the 22 Line 2 Rehabilitation Projects worth P984.56 million are already delayed from 77 to 1,065 days from their supposed target completion date.

State auditors stressed the setback is in violation of Republic Act (RA) 9184 or the “Government Procurement Policy Board” and has deprived the public of the “intended benefits that may be derived therefrom”.

“We recommended and [the] Management agreed to require the Planning Department and Line 2 PMO-Rehabilitation Projects end-user to impose liquidated damages to contractors who have failed to satisfactorily complete the project within the target date of completion as required under Section 8.1 of Annex E of RIRR of RA 9184,” the audit agency said.

“Also, consider blacklisting of the contractors involved and initiate the immediate take-over process of terminated projects, if necessary,” it added.

The COA said it had issued a memorandum against LRTA dated April 12, 2021, to obtain information on the involved projects including the amount of imposed liquidated damages, the value of the unperformed portion of the contract, and the status of the contract period.

It believes the data are “vital and need to be submitted in order to evaluate and assess the projects, necessity of imposing liquidated damages and if the time extension granted by the LRTA for the delayed projects are justified.” LRTA has yet to reply, however.

Among the delayed projects, according to the commission, are the design and build for the improvement of Line 2 stations and facilities of the project worth P436.77 million, consultancy services for structural investigation and related works at LRT Lines 1 and 2 worth P45.48 million, and replacement of air conditioning system at depot worth P65.90 million.

Upon inquiry, COA found that two of the projects were already completed and are awaiting the issuance of a certificate of completion. At least three, meanwhile, were already terminated including the construction/installation of the train lift system, replacement of four escalator units at mainline stations, and the repair of unbonded concrete plinths at LRT Line 2 (Phase 2).

Following COA's recommendation, LRTA management on Tuesday disclosed it has blacklisted seven erring contractors involved in the major rehabilitation projects of LRT-2.

LRTA administrator Jeremy Regino said he immediately ordered a review of the existing contracts for the six rehabilitation projects upon assuming office on January 6, 2022.

This resulted in the termination of contracts and blacklisting of the firms.

The train management also assured it had filed appropriate administrative and criminal complaints against LRTA officials involved in the delayed projects.

“The LRTA assures that the best interest and safety of the riding public are of paramount importance and will continue to comply with good governance practices in the implementation of its programs and projects,” it said.—AOL/LDF, GMA News