Nine construction heavy equipment and various tools worth P25.4 million in Davao City were not utilized for more than five years, exposing them to possible loss and wear and tear, state auditors said.
In its 2016 annual audit report on the Construction Industry Authority of the Philippines (CIAP), the Commission on Audit (COA) said the Construction Manpower Development Foundation (CMDF), CIAP’s implementing arm for the construction manpower development and training, have nine idle heavy equipment in Davao city left to disuse
COA said it inspected the Davao City CMDF and found out that nine construction heavy equipment with a total cost of P25,177,918.47, and tools amounting to P222,223, were found inside the premises of the Lapanday Skills Training Center, the agency’s partner in the conduct of seminars in the region.
COA said these property, which were donated by the Japan International Cooperation Agency, were still serviceable, but were not utilized for more than five years because seminars were no longer being conducted by the agency.
The heavy equipment include a bulldozer, dumptrucks, hydraulic excavator, motor grader, shift foot roller, tanker truck, vibratory roller, and wheel loader.
Management said equipment and tools were not utilized for more than five years due to the Rationalization Plan of the CIAP-CMDF, which led to the decrease of qualified personnel.
Its training partner, the Lapanday Foundation, limited its activities because the parent company suffered business losses, COA learned.
COA recommended to the CIAP management to have the Division Chief of the Training Division find a strategic partner who will help them revive the skills and trade trainings or seminars to benefit local construction industries and contractors as well as to increase the income of the agency; and instruct the person in-charge to transfer the tools that can still be used for the trainings to be conducted in CMDF Training Center in Dasmariñas, Cavite.
Under Presidential Decree 1746, the CIAP is mandated to promote, accelerate, and regulate the growth and development of the construction industry in conformity with national goals through its implementing arms.