COA cites lapses stalling completion of long-delayed CCMC

Local

A FRESH audit by the Commission on Audit (COA) has put Cebu City's long-delayed Cebu City Medical Center (CCMC) expansion back under scrutiny.

This, after state auditors cited deficiencies that continue to stall the nearly ₱2-billion hospital project despite more than ₱1.13 billion already having been spent.

In its 2025 Annual Audit Report on the Cebu City government, COA said shortcomings in engineering planning, contract administration, and project documentation hampered the implementation of the proposed new CCMC, which has accumulated ₱1,130,186,007.55 in project costs as of December 31, 2025, against total contract amounts reaching ₱1,904,225,845.36.

Auditors said the project suffered from deficiencies in detailed engineering activities, inadequately supported contract time extensions, and the failure to submit required technical documents for several construction phases.

These lapses, COA noted, contributed to prolonged implementation delays, the termination of certain contract phases, and prevented auditors from completing the necessary technical evaluation and inspection of the project.

The audit findings, according to COA, were inconsistent with Presidential Decree No. 1870, Republic Act No. 9184 or the Government Procurement Reform Act, and COA Circular No. 2009-001 governing the implementation and documentation of infrastructure projects.

To address the issues, COA directed the Cebu City Department of Engineering and Public Works (DEPW) to submit missing technical documents covering Phases I and II, Interior Masonry Works, and the Mechanical, Electrical, Public Health, and Fire Services works on the fifth and sixth floors to facilitate the conduct of a complete technical audit.

For Phase III, auditors instructed the city to justify the project's 574-day suspension and recover any overpayments if warranted.

COA also ordered the DEPW to submit detailed computations for excess and non-bill of quantities (BOQ) items under Phase IV, explain why some installed systems remain non-functional, and clarify why testing and commissioning have yet to be completed.

State auditors likewise required city engineers to explain why implementation issues were not detected during the detailed engineering stage, submit the project's approved master plan, and provide detailed Programs of Work and Estimates showing how construction activities were distributed throughout the building.

The audit body further recommended evaluating unfinished contracts for possible termination or takeover through the Contract Termination Review Committee and ensuring that future infrastructure projects undergo complete engineering preparation and documentation before implementation.

The audit findings surfaced as Mayor Nestor Archival continues to push for the hiring of independent consultants to help complete the hospital.

He said outside expertise is needed to resolve technical concerns left by previous contractors.

Archival earlier said the present contractor, Dakay Construction, inherited work from four previous contractors, making it necessary to verify whether the existing mechanical, electrical, plumbing, and fire protection systems comply with required standards before they are integrated into the remaining construction.

He also said the Department of Health instructed the city to conduct testing on the building's engineering systems, with the results to be submitted to COA before the project proceeds further.

The mayor has likewise expressed doubts that the city can meet its October 2026 target for completing the hospital, noting that the remaining work involves correcting and validating systems installed over several years.

He disclosed that the City Engineering Office granted Dakay Construction an additional 145 days to complete the required testing and secure COA clearance.

Archival also said the city may seek a supplemental budget to fund the hiring of independent consultants since no allocation for the initiative was included in this year's budget.

The CCMC expansion has become one of Cebu City's longest-running infrastructure projects, repeatedly encountering contractor changes, implementation setbacks, and audit observations over the past decade.

City Councilor Dave Tumulak has consistently called for independent technical oversight.

He warned that the absence of professional consultants could further delay the project's completion and expose the city to additional audit findings.(TGP)