The district office is charging utility companies only 10% of the expected repair cost as a deposit, but the rules say they must provide a full guarantee covering 100% of the repair cost. This means the government is not protected if the company fails to do the repairs properly.

Why It Matters

Recommended Actions

No recommendations are available for this finding yet.

Original Audit Finding Excerpt

"407 DPWH DO Region Office Noted Deficiency/ Deviation to bear the remaining days to finish the unperformed works and to take corrective actions on the works that do not conform with the contract plans and specifications. The PRs did not include the Materials Engineers assigned to the respective projects as signatories which was expressly mentioned under the said DO, them being part of the DPWH PrMT; and Further, the projects were requested for Inspection of Completion for 15 to 62 days after the completion of the project as per the SWA attached in the DVs for final billing. The time elapsed from the reported date of project completion and the time of request for inspection for completion made by the contractors creates doubt as to the actual accomplishment at the reported date of project completion. DPWH DO No. 100 s. 2018 outlines the guidelines for reviewing and consolidating the procurement of specific goods and services within the department; and DP"

Source Document