COA flags ₱459B in DPWH contracts over contractors’ financial capacity

The Commission on Audit has flagged ₱459.26 billion in Department of Public Works and Highways contracts after finding incomplete declarations that overstated some bidders’ capacity to undertake additional projects.

The findings covered 11,391 of 27,094 infrastructure contracts reviewed by auditors, according to a GMA News report published November 2.

COA found that bidders’ submissions did not fully disclose existing contractual commitments. These omissions affected calculations used to determine whether contractors had sufficient financial capacity for more government work.

In one example, a contractor received four additional contracts worth ₱530 million despite having capacity for only ₱81 million.

DPWH said it assessed financial eligibility during post-qualification and that some projects had not yet been awarded when bids were submitted. COA countered that qualifications could be reassessed during procurement when additional commitments became known.

The ₱459-billion figure represents the value of contracts covered by the audit findings, rather than an established amount lost to theft or corruption.

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