The Commission on Audit (COA) has questioned the acceptance of a P7.1-million closed-circuit television (CCTV) project in Carmen, Cebu, after inspectors found 22 of the 65 contracted cameras non-functional during an inspection in February 2026.
The audit team also flagged inconsistencies in project completion records and the initial failure to account for five camera units, despite the municipal government having fully paid P7,115,694.42 for the Supply and Installation Project Phase II.
During an ocular inspection on Feb. 13, 2026, auditors observed blank camera feeds and error signals at the command center. Municipal personnel confirmed that 22 cameras were not working.
The team initially accounted for only 60 of the 65 units covered by the contract, raising questions about whether the municipality had verified the entire system before accepting the project.
COA also questioned the project’s accomplishment reports, which recorded 86.88% completion as of Oct. 31, 2024, before declaring it 100% complete on Nov. 2.
With only 48 hours between the two reports and Nov. 1 and 2 falling on special non-working holidays, auditors questioned how the contractor completed the remaining work within that period.
Approved extensions totaling 90 days moved the project deadline to Feb. 2, 2025. However, the audit report said the first-quarter accomplishment report for 2025 and information from engineering personnel indicated that the project was completed only in February that year.
Despite the extended deadline, the municipal government issued a Certificate of Completion dated Nov. 4, 2024, and proceeded with final acceptance on Nov. 5, 2025.
COA said the conflicting dates affected the determination of the one-year Defects Liability Period, which should have run until Feb. 2, 2026, based on the completion date established in the audit findings.
The auditors warned that accepting the project despite its defects could weaken the municipality’s ability to enforce the contractor’s warranty obligations and leave the local government paying for repairs.
“The acceptance of the project despite its incomplete and non-functional condition effectively waived the government’s right to enforce these provisions, thereby transferring the burden of repair to the Municipal Government,” the audit report stated.
The report cited the 2016 Revised Implementing Rules and Regulations of Republic Act 9184, which require warranty security and obligate contractors to correct defects at their own expense during the warranty period.
COA also raised the question of the contractor’s liability for damaged cameras. The municipal engineering office attributed the damage to the Sept. 30, 2025 earthquake.
The auditors cited Article 1165 of the Civil Code in discussing possible liability for damages when a contractor is already in delay.
In its response, the Office of the Municipal Engineer said it based the accomplishment figures on the contractor’s submitted Statement of Work Accomplished and Project Accomplishment Report, which the office evaluated in good faith.
The office acknowledged inconsistencies in the completion dates and attributed them to administrative lapses in reflecting the approved contract extension. It said an internal review was underway to validate the accomplishment figures and align the records with the actual project timeline.
The engineering office also said it initially considered the cameras operational but that Typhoon Tino later damaged the units. It added that the contractor had been directed to repair or replace the affected cameras at no cost to the government under the warranty provisions.
Regarding the five units that auditors initially could not verify, the office explained that some cameras had been temporarily removed for maintenance, particularly in Barangay Luyang, without the municipal engineer’s knowledge. One unit could not be inspected because of site access limitations.
The office said all 65 cameras had since been verified, reinstalled and were operational. It added that a physical inventory and reconciliation remained underway.
COA acknowledged the explanation regarding the camera discrepancy but directed the engineering office to submit the results of the inventory and reconciliation, including any adjustments made.
The auditors also recommended that Carmen Mayor Carlo Villamor and the municipal engineering office explain the discrepancies in the accomplishment records, justify the issuance of the completion certificate and the project’s final acceptance, account for the units initially not verified, and assess the enforcement of the contractor’s warranty obligations.
Photo courtesy of Carmen Gov’t
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