COA flags Children’s Hospital over P763 million unfinished projects

MANILA, Philippines — The Commission on Audit (COA) has called out the Philippine Children’s Medical Center (PCMC) over unfinished infrastructure projects amounting to P763.126 million.

In its 2021 annual audit report on PCMC, the COA noted that of the eight infrastructure projects of the state-owned hospital totaling P1.586 billion, five projects amounting to P763.126 million were way beyond their target completion dates.

Based on COA’s records, the completion of the five projects had been delayed by 24 to 31 months.

“As a result of the delays, the intended beneficiaries have been deprived of the immediate use of the infrastructure. It somehow affected the PCMC’s delivery of efficient and quality healthcare services to the public due to the unavailability of these infrastructure projects,” the COA report read.

Based on COA’s breakdown, a contract amounting to P448.888 million for the construction of  a new two-wing, eighth story hospital building with basement (Phase I) was terminated by the PCMC on Nov. 10, 2021 due to non-delivery of materials and lack of manpower by the contractor.

The project should have been completed on May 23, 2019 as stated in the contract. But as of Dec. 31, 2021, the project was only 71.65 percent complete, according to state auditors.

Other delayed projects of the PCMC include the P74.1-million four-story cancer center building, four-story pediatric brain center amounting to P146.368 million and the steel parking building worth P69.333 million.

Another project amounting to P24.435 million involving the construction of wastewater treatment facility was substantially completed, but still has to undergo discharge of permit procedures.

The audit body said the project should have been completed on July 3, 2019.

The COA noted that except for unfavorable weather conditions and the COVID-19 pandemic, most of the reasons for the delays were “procedural and consequential issues that should have been resolved during the preliminary engineering study on the viability of the projects and pre-construction activities.”

The audit body said the PCMC should impose liquidated damages on the contractors for the delays incurred without approved time extensions.

The PCMC said its Bids and Awards Committee is in the process of blacklisting the erring contractors.