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State auditors flag P532 billion in delayed, inefficient DPWH projects

THE Department of Public Works and Highways (DPWH) inefficiently implemented 9,061 infrastructure and consultancy projects worth P531.79 billion in 2025, with delays, prolonged suspensions and idle works hampering project delivery, according to the Commission on Audit (CoA).

“Deficiencies in project planning, detailed engineering, contract administration, supervision, monitoring and timely resolution of implementation issues contributed to the inefficient implementation” of the projects, state auditors said in their annual audit report.

CoA attributed the deficiencies to weaknesses in project planning, engineering, contract administration, supervision and monitoring, as well as delays in addressing implementation issues.

The audit also showed that the agency had failed to disburse more than half of its obligated funds.

Of the P1.077 trillion obligated from its P1.357-trillion budget allocation, only P491.72 billion, or 45.65%, had been disbursed by the end of 2025, leaving P585.47 billion undisbursed.

“Of the total obligated amount, only P491.7 billion or 45.65% was disbursed,” CoA said, adding that the outcome ran counter to the objectives of the government’s cash budgeting system.

Another P33.67 billion in cash allocations was not used and reverted to the Bureau of the Treasury because of procurement delays and slow billing processing.

The DPWH also fell short of key infrastructure targets.

Under its network development program, the agency completed only 13.18 kilometers of national roads against a target of 849.71 kilometers. Bridge construction totaled just 113.31 lineal meters, well below the target of 23,489.08 lineal meters.

CoA also flagged 50 multi-phase civil works contracts worth P4.62 billion whose project phases remained partially operational, idle, unusable or suspended.

The audit found P4.09 billion in advances to contractors and consultants remained unrecovered from completed, terminated, rescinded or abandoned projects, as well as projects awaiting termination.

Inspections also identified technical defects in 872 projects worth P4.33 billion, while 300 projects worth P17.34 billion showed visible structural defects or discrepancies.

The DPWH disbursed only P300,000 out of P1.97 billion obligated for the rehabilitation of Marawi City and surrounding areas, equivalent to 0.02% of the obligated amount.

Despite obligating 89.96% of the P2.19 billion allocated for the rehabilitation program, almost none of the funds had been released by the end of 2025.

CoA issued a qualified opinion on the DPWH’s 2025 financial statements after identifying P17.28 billion in uncorrected misstatements.

The agency also carried P67.93 billion in audit suspensions, P50.15 billion in audit disallowances P2.83 million in audit charges, bringing total unsettled audit findings to about P118.09 billion.

DPWH said it would implement CoA recommendations, including improving project preparation and monitoring, accelerating billing and strengthening the settlement of audit findings. — Pexcel John Bacon



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