Underutilization of Agency-Owned Materials Testing Laboratories
Department of Public Works and Highways · 2024
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What Happened?
Category: Asset ManagementIssue: InefficiencyGovernment laboratories are not being used even though they have equipment. For example, one office has about 43.7 million pesos in unused equipment but earns very little, wasting money and failing to recover the investment.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"38.12 Moreover, despite the presence of fully equipped, agency -owned MTLs, many contractors continue to rely on private DPWH-accredited laboratories. In Regions I, II and III, this pref erence stems from issues such as inadequate equipment, lack of chemicals, absence of licensed chemists, and workload backlogs in government laboratories. 38.13 In Bulacan 2nd DEO, where P43,746,777.00 worth of laboratory equipment remains unused due to lack of space and qualified personnel. Consequently, the DEO earned only P1,700,340.00 in testing revenues, far below the annual depreciation cost of P7,950,837.89 for its laboratory equipment."