COA calls out DOH over unimplemented hospital improvements

MANILA, Philippines — The Commission on Audit has taken the Depart of Health to task over unfinished hospital upgrades worth P1.5 billion under the Health Facilities Enhancement Program (HFEP) of the Aquino administration.

 

In its annual audit report recently published on its website, the COA said that from 2010 to 2016, a total of P83.365 billion was allocated for the HFEP “to upgrade, rehabilitate, and construct government health facilities.” 

 

The state audit body, however, said that as of the end of 2016, a total of P1.188 billion of the infrastructure projects were “not completed within the contract timeframe” particularly those in the DOH offices in Region V (Bicol), VI (Western Visayas), and XI (Davao Region), as well as at the Quirino Memorial Medical Center (QMMC) in Quezon City, Bataan General Hospital (BGH), and Cotabato Regional and Medical Center (CRMC).

 

Among the reasons cited in the report were the absence of the required building permits, changes in the original plan due to issues of functionality, unavailability of materials and laborers, lack of proper monitoring and strict adherence to the project timeframe as well as frequent weather disturbances.

 

The state auditors noted that some of the contracts were already due for termination while some are already subject for liquidation damages in favor of the government for the contractors' failure to meet their obligations.

 

“However, termination of the contracts has not yet been effected, thus, management’s actions that may be made against the contractor such as, forfeiture of warranties and liquidated damages are not yet enforced with finality,” the report read.

 

The audit body said a contractor was even awarded additional projects by the Bicol regional health office despite its failure to complete a previous project on time.

 

Meanwhile, the COA said five infrastructure projects under HFEP in Don Jose S. Monfort Medical Center Extension Hospital (DJSMMCEH) in Barotac Nuevo, Iloilo, with an allocated budget of P25 million have yet to start at all due to “poor planning and delayed preparation of the program of works”.

The state auditors said that while P291.748 million worth of infrastructure projects under the HFEP were already completed, those remain “idle or unutilized” mainly due to absence of occupancy permits and work defects that have to be rectified such as damaged ceilings, soil subsidence, cracks on the walls and flooring and faucet leaks.

 

The COA said electrical power has also yet to be installed in some of the facilities.

 

Further, the COA said the facilities have yet to be tested and accepted by the end-users, which include the Region XI office, as well as Jose R. Reyes Memorial Medical Center in Manila, Baguio General Hospital Medical Center, and the Philippine Orthopedic Center in Quezon City.

 

The COA said the DOH's non-utilization and slow implementation of the HFEP projects “is thus delaying the benefits that the public could have derived from the immediate and maximum use of the said facilities.

Meanwhile aside from the non-completion or non-utilization of the P1.505-billion infrastructure projects, the COA said the DOH also failed to use P101.649-million worth of equipment procured also under the HFEP as most of them were found to be defective.

 

This includes P55.269 million worth of equipment at the Treatment and Rehabilitation Center in Taguig City, San Lazaro Hospital in Manila, JRRMMC, POC, CRMC, and at the regional health offices in Cagayan Valley and Central Luzon.

 

The COA said P2.93 million worth of equipment procured for the Corner District Hospital in Apayao were functional but the hospital personnel lacked the technical expertise to operate them.

 

Mobile dental vehicles amounting P43.45 million distributed to National Capital Region, Cagayan Valley, Zamboanga Peninsula and the Caraga Administrative Region could not also be used due to various defects.

The COA recommended that the DOH conduct regular and strict monitoring of the ongoing construction work as well as address issues regarding the licensing permits and accreditation with the Philippine Health Insurance Corporation to avoid any delays in the operations once the projects are completed.

 

It also reminded the DOH to impose liquidated damages for the construction delays and “to report the unsatisfactory/poor performance of the contractor(s) to concerned authorities for disciplinary measures”.

 

Meanwhile, as for the procured equipment, the COA said the DOH must conduct stringent validation “not only as to the receipt, but more so, on the condition and utilization of equipment distributed to hospitals and Ros (regional offices).

 

The COA said the DOH must impose sanctions against the suppliers of the defective equipment whose specification is not in accordance with the purchase orders as well as against the health personnel who inspected and accepted the delivery thereof.