MANILA, Philippines - Buildings and other facilities, including two condominium-type hotels (condotels), worth more than P50.2 million, have remained idle at the Zamboanga City Special Economic Zone since they were constructed in 2008, state auditors said.
The Commission on Audit (COA) said government resources are being wasted considering how millions of pesos in government money were spent for projects that are not even able to generate income for the state.
Records show that the Zamboanga City Special Economic Zone Authority caused the construction of two-story condotels worth P25,420,048.94 in 2008.
Completed in June 2009, the buildings sought to serve as suitable retirement and residential areas for prospective local and foreign retirees and investors.
But to date, COA said the condotels have remained unoccupied or idle and unable to generate income for the economic zone while the buildings “continue to depreciate.”
“There is a zero rate on return (ROI) of the Authority’s investment and unable to match the continued expenses in maintenance and depreciation of the units which are even exposed to further deterioration, clearly showing wastage of government resources,” the COA said.
“Considering the lapse of almost two years, it seemed that there are no interested takers of these condotels, thus we recommended that the management should conduct proper planning and study before acquiring properties,” it added.
The COA said officials of the economic zone should see to it “that funds are invested in projects that are financially viable and that would give economic inflow” and that there should be “prior commitments from prospective investors for possible ROI to prevent wastage of resources.”
Aside from the condotels, state auditors said there are other facilities, equipment and other structures worth over P24.8 million which have remained idle and unable to generate income while they continue to deteriorate.
These include an artificial ocean worth P2.8 million; a wastewater treatment and collection system valued at P15.1 million; an elevated water tank worth P2.9 million; and a P2.4-million Presidential Chateau.
“Verification and inspection revealed that subject facilities are deteriorating and some structures are becoming more dilapidated while the uncompleted Presidential Chateau is already cannibalized,” the COA said.
The ecozone’s officials, however, gave assurance that they are doing something to address the matter like turning the condotels into a tourism and recreation estate where a casino would operate.