Audit for Cebu City’s traffic system project sought

Local

THE Cebu City Council has called for a fraud audit of its P480-million Digital Traffic System project, which has already reached the Office of the Ombudsman due to an unresolved payment dispute with its contractors.

Mayor Raymond Alvin Garcia expressed support for the City Council's request for a review by the Commission on Audit (COA), highlighting the urgency of resolving the issue as contractors Triune Electronics Systems Inc. and Cylix Tech CCTV and Smart Surveillance have filed a complaint with the Ombudsman, seeking full payment for Phases 1 and 2.

"Anytime now the Ombudsman might make their own investigation. That is why I want this issue to be settled as soon as possible," Garcia said.

The push for an audit was initiated by Councilor Jocelyn Pesquera, who, in a privilege speech, raised concerns about irregularities in the project.

She pointed out that the system lacks several promised intelligent features and questioned the validity of the contracts, noting the absence of a council resolution authorizing the late Mayor Edgardo Labella or City Administrator Floro Casas Jr. to sign the agreements.

As a lawyer, she argued that this could render the contracts invalid.

Garcia confirmed that while he has not yet formally requested COA’s involvement, he is open to the audit.

He added that a task force he established is currently reviewing all aspects of the project, including verifying the delivered equipment such as CCTV cameras and signal lights to ensure compliance with contract specifications.

“They are looking at everything, counting the cameras delivered, making sure that everything is in line with the terms of reference,” Garcia explained, emphasizing the need for thorough verification.

Garcia also underscored the importance of expediting the resolution of the payment issue, noting that the inactive CCTV cameras have hampered law enforcement efforts.

"Actually, our police during times of incident cannot check the CCTV cameras because these are not activated," he said.

Despite these concerns, the city has earmarked P200 million for Phase 3 of the project in its 2025 Annual Budget. Garcia noted that moving forward with Phase 3 would be considered only after resolving the issues with the previous phases.

Councilor Pesquera reported that only 8 percent of the payment for Phase 2 remains unpaid, although its total cost exceeds P238 million.

In response, the City Council passed a resolution urging the mayor to withhold further payments until the fraud audit is completed.

Garcia maintained that the decision to proceed with the third phase would remain an executive decision but acknowledged it would be "logical and reasonable" to address concerns with Phases 1 and 2 before advancing.(MyTVCebu)