COA flags MMDA for P1B unutilized budget in 2024

The Commission on Audit (COA) has flagged the Metropolitan Manila Development Authority (MMDA) for not using more than P1 billion of its budget in 2024

According to Mariz Umalis’ report on “24 Oras” on Tuesday, the state auditors noted in the annual audit report that only 75.25% of the budget was utilized last year. 

“Out of the total authorized budget of P11,818,903,169.59 received by MMDA in CY 2024, P10,790,526,587.27 or 91.30 percent was obligated, leaving an unobligated balance as at P1,028,376,582.32,” the annual audit report on MMDA read. 

“However, only P8,893,746,931.15 or 75.25 percent of the total allotments and 82.42 percent of the obligations incurred were disbursed as of December 31, 2024,” it added. 

COA said that the low budget utilization can be attributed to the delays of some projects and procurement processes, including bidding, acquisition of contractors, and the purchase of equipment. 

The state auditors warned that the unutilized funds must be returned to the National Treasury. 

In the traffic management projects, the target schedule in the Annual Procurement Plan was not followed, so it was necessary to request an extension to prevent the funds from lapsing, the COA said. 

Meanwhile, there are 17 flood control projects that will proceed, but they have zero disbursement rate, or the contractors have yet to submit their claims/billings, the COA added. 

Further, the state auditors said that there was secured loan funding for the Metro Manila Flood Management project. But as of October 2024, only 40.40% of the funds allocated for Phase 1 had been utilized. 

Due to this delay in fund utilization, the government incurred and paid a total of ?37.4 million in penalties between 2018 and 2024 for failing to disburse the borrowed money on schedule.

The state auditors also noted that there was ?29.57 million in funds that remain unutilized. Of the 68 projects, 40 were still incomplete during the audit period, plus an additional five that could not even begin due to unsuccessful bidding processes.

Moreover, P21 billion worth of projects are experiencing delays attributed to issues like poor coordination among government agencies, external disruptions, and problems securing necessary permits. 

There are also six other projects each valued at ?700 million, but they failed to meet their completion deadline in 2024.

COA also said that there are ?30 million in advanced payments made to contractors for various projects that have not been recovered, particularly for those projects that were either officially terminated or abandoned by the contractors.

The MMDA declined to comment, noting that its official response to the COA's audit observations is already contained within the audit report itself.

However, the agency affirmed that it will address the identified deficiencies and work to strengthen the areas criticized by the COA, specifically monitoring protocols, procurement efficiency, and inter-agency coordination. —Vince Angelo Ferreras/LDF, GMA Integrated News