ELCAC AUDIT: Roads, water systems, farm centers in Iloilo worth PHP 73.8M left hanging

ILOILO CITY — State auditors flagged 29 anti-insurgency infrastructure projects of the Iloilo provincial government, with an estimated completion cost of PHP 73.892 million, for remaining unfinished or nonoperational.

The projects are funded under the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) and the Local Government Support Fund–Support to Barangay Development Program (LGSF-SBDP).

The NTF-ELCAC was created in December 2018 through Executive Order No. 70.

The LGSF-SBDP is the NTF-ELCAC’s flagship socio-economic development program, which aims to bring basic services, infrastructure, and social development packages to conflict-affected and vulnerable communities.

In its 2025 audit report, the Commission on Audit (COA) found that 29 projects remained uncompleted as of Dec. 31, 2025.

Of these, eight projects costing PHP 8.178 million were not operational.

Of the 29 uncompleted projects, 13 were partially implemented and 16 had not been implemented at all.

COA said that of the 68 projects monitored after the return of the initial national government grants, 39 had been completed, including 32 that were fully operational and seven that were partially operational.

“We acknowledge the efforts of the implementing offices in monitoring and delivering the completed projects. However, for the remaining uncompleted and non-operational projects, the program’s objectives were not fully attained, and the intended benefits were not fully realized by the target beneficiaries,” COA said.

“Moreover, the continued non-implementation and non-operation of these projects exposed them to possible deterioration and further reduced their utility and effectiveness,” it added.

The unspent national grant funds were reverted after their validity lapsed on Dec. 31, 2022.

In 2021, the provincial government received PHP 720 million in national funding under the LGSF-SBDP of the NTF-ELCAC for 165 projects.

When the funds’ validity expired, only PHP 214.520 million had been spent.

Following directives from the Department of Budget and Management (DBM) at the time, the Capitol reverted the remaining unspent national grant funds to the National Treasury.

However, the DBM later clarified that unexpended transferred funds did not need to be returned, but the Capitol had already reverted the money by then.

The reversion left 68 uncompleted projects with a contract cost of PHP 344.938 million and an unfunded balance of PHP 130.418 million.

This required the provincial government to step in with local counterpart funding between 2023 and 2025, leaving 29 projects uncompleted as of Dec. 31, 2025.

Inoperative facilities

COA criticized the provincial government’s assessment of project completion for focusing primarily on physical construction and adjusted project scopes rather than operational readiness, long-term sustainability, and actual utilization by intended beneficiaries.

Physical inspections revealed deficiencies in several infrastructure projects, including farm-to-market roads, water supply systems, and livelihood facilities.

Some farm-to-market roads reported as 100 percent complete had shorter actual lengths or portions that remained unconcreted compared with their original plans.

Auditors also noted that the targets under the projects’ programs of work were reduced following budget adjustments.

Inspections of 13 completed water supply projects also found systems that were nonoperational or unable to provide water to households.

The deficiencies included missing household connections due to residents’ financial constraints, lack of electricity connections, damaged pipes and equipment, reliance on informal power arrangements, and inactive or unregistered Barangay Water and Sanitation Associations (BAWASA).

An agricultural livelihood center had been structurally completed but remained unused and was already showing signs of physical deterioration.

“Consequently, the effectiveness of the projects in achieving their intended socio-economic benefits is diminished, and government resources are exposed to risks of underutilization, deterioration, and reduced value for money,” COA said.

16 projects left unfunded

In a separate finding, auditors reported that 16 uncompleted ELCAC projects had no funding allocation to cover their estimated PHP 60.931 million cost to complete as of the end of 2025.

COA said this violated Section 5.2.1.b of the Department of the Interior and Local Government (DILG) Memorandum Circular No. 2023-063, which requires local government units to commit local funds to complete ongoing projects.

From 2023 to 2025, the provincial government allocated PHP 113.431 million in local counterpart funding for 52 projects.

However, 16 projects received no funding allocation.

Ten of the unfunded projects, with an estimated completion cost of PHP 34.799 million, were in Tubungan. Four projects in Leon required PHP 24.909 million, while two in Igbaras needed PHP 1.223 million.

Capitol eyes 2026 supplemental budget

In response to the audit findings, provincial officials cited procurement difficulties, rising construction costs, and issues involving the reversion of unspent national government funds.

The provincial government said failed bidding attempts were partly due to the remote and geographically isolated locations of project sites.

Rising labor costs and material prices also prompted adjustments to the programs of work for farm-to-market roads.

Officials further cited confusion over changing DBM directives, which led to the premature reversion of unspent national funds before subsequent clarifications were issued.

The Provincial Engineer’s Office (PEO) said it would endorse the 16 unfunded projects to the Local Finance Committee for possible allocation under Supplemental Budget No. 1 for 2026.

The PEO also pledged technical capacity-building for BAWASA groups to help ensure the proper maintenance and continued operation of water supply systems.