Insurable Properties Not Insured
Department of Public Works and Highways · 2023
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What Happened?
Category: Asset ManagementIssue: Non-complianceThe agency did not buy insurance for billions of pesos worth of buildings, equipment, and other assets. If a fire, earthquake, or storm damages or destroys them, the government will have to bear the loss without compensation.
Why It Matters
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Original Audit Finding Excerpt
"Insurable properties and equipment of DPWH with carrying amount of at least P4,055,582,536.86 were not insured with the General Insurance Fund of the Government Service Insurance System, as required under Sections 2 and 5 of Republic Act No. 656 or the Property Insurance Law, thus exposing the Agency to the risk of non-recovery and/or non-indemnification in case of damage, destruction or loss of properties due to fire, earthquake, storm or other casualties. (Observation No. 29)"