Infra projects by Sunwest in LTO compound flagged due to alleged deficiencies

The Commission on Audit (COA) flagged some of the infrastructure projects handled by Sunwest Corporation, a construction company owned by former congressman Zaldy Co, due to alleged deficiencies even after payment was made.

According to Joseph Morong’s report in “24 Oras” on Tuesday, among the projects the LTO cannot use is the P946-M worth Central Command Center or C3 Project.

“May mga dapat na cameras na dapat ilagay all over the Philippines, wala po yang mga nangyaring ‘yan. Sa totoo lang, hindi siya gumagana. Tsaka overpriced, may overpayment pa po ito na P26 million,” said LTO chief Markus Lacanilao.

The annual audit report by COA showed that the value of the contracts by Sunwest with LTO is nearly P2 billion.

Sunwest entered into a joint venture with three other firms in 2020 for the construction of the C3 Project.

The state auditors said that the joint venture failed to comply with the technical specifications required by the LTO, consequently hindering the project's progress.

The COA said some components of the project, including the video analytics system, data analytics platform, and reporting, were not available during the official audit inspection.

“The acceptance of the C3 project despite the deficiencies noted and payment thereof was to the disadvantage of the government,” COA said.

COA pointed out that some of the project’s features, such as the video analytics system, are not frequently used. 

The state auditors also said that the “poor review of the contract cost resulted in an overestimated contract price and overpayment to the supplier.” 

“The discrepancies in the indirect and direct costs of P23,886,832.06 and P214,357.97, respectively, and its applicable taxes of P2,892,142.80 totaling P26,993,332.83,” the audit report read. 

The COA recommended that the LTO charge the supplier for its deficiencies and request a refund for any overpayment. 

However, the LTO commented that  the supplier provided all the requirements and there was no overpayment in the project.

IT Training Hub, Road Safety Interactive Center 

COA also flagged the underutilization of the IT Training Hub and Road Safety Interactive Center, which have contract costs of nearly P500 million each. Both projects were also under Sunwest, said LTO. 

Training and seminars are supposed to take place in the three-storey IT Training Hub. But COA said that the first floor was converted into an office of the Traffic Safety Division. 

"Meanwhile, the second and third floors, which house the female and male dormitory rooms, are now vacated by previous occupants, which is ssaid to be occupied by LTO and PCG employees, except for one room currently being occupied by one LTO employee," the state auditors said.

It was also observed that "the rooms were not properly maintained and had unpleasant odor."

“Furthermore, it was observed that the equipment intended for recording training, materials such as desktop computers, microphone, audio mixer and headphones, were found idle in the IT Hub’s record room,” said COA in its report.

On the other hand, COA also flagged that there were no guidelines, plans, programs, or accomplishment reports on the utilization of the Road Safety Interactive Center since 2023.

For its part, LTO  agreed with the recommendations by the state auditors regarding the issuance of guidelines on the use of the Training Hub and Interactive Center. — Vince Angelo Ferreras/BAP, GMA Integrated News