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The COA beforehand upheld three different Davao Metropolis tasks awarded to E. Gardiola Development, all discovered overpriced, structurally non-compliant, and utilizing substandard supplies
MANILA, Philippines – The Fee on Audit (COA) has upheld the disallowance of funds for a greater than P19-million highway enchancment undertaking in Davao Metropolis after discovering it overpriced by over 330% and riddled with building deficiencies.
In a choice launched on Monday, December 15, the COA en banc affirmed the ruling of state auditors in Davao Area on the P19.29-million Ma-a Radio Station Highway–Davao Metropolis Diversion Highway undertaking undertaken by E. Gardiola Development.
The agency is registered beneath the brother of Development Staff Solidarity (CWS) Celebration-list Consultant Edwin Gardiola.
Auditors stated the contract value of P19.289 million exceeded COA’s estimated undertaking value of P4.478 million by 330.69%.
In addition they discovered that the undertaking didn’t adjust to the requirements set by the Division of Public Works and Highways (DPWH).
An inspection cited rusty rails, bolts, nuts and washers, guardrail posts with out concrete foundations, and substandard highway indicators, pavement studs and guardrails, auditors stated.
COA held liable DPWH district engineer Lorna Ricardo, assistant district engineer Milagros delos Reyes, engineers Dwight Vincent Fernandez, Eduardo Villar, Johnny dela Peña and Bernardo Engalan, building and upkeep foreman William Paglinawan, and contractor E. Gardiola Development.
The fee ordered them to refund P13.6 million in disallowed funds.
A technician, Rolly Tulayba, whose position was restricted to zinc coating of the guardrails, was held answerable for P4.76 million together with different officers of the DPWH-Davao Metropolis District Engineering Workplace.
“Since a disallowance or an audit discovering of overpricing is just not merely an audit opinion however an adjudication involving conclusions of wrong-doing on the a part of the administration inflicting injury to the federal government for which a monetary restoration is to be exacted via the quantity of disallowance, the quantity of proof to help the disallowance must be akin to to determine with a dependable diploma of certainty, the discovering of overpricing,” learn a part of the 17-page COA en banc choice.
The COA stated the matter can be referred to the Workplace of the Ombudsman for potential prison and administrative expenses.
By the way, the COA additionally famous that it had beforehand issued three different rulings sustaining disallowances involving separate infrastructure tasks in Davao Metropolis, all awarded to E. Gardiola Development.
These tasks had been likewise discovered to be allegedly overpriced, didn’t adjust to structural necessities, and used substandard supplies.
Paperwork confirmed the undertaking was awarded in 2009 to E. Gardiola Development beneath the DPWH’s Site visitors Security Mission.
The DPWH later licensed the undertaking as accomplished in 89 days, prompting the discharge of full cost to the contractor on August 25, 2025.
The undertaking was lined by a particular audit carried out by COA-Davao on tasks carried out by the DPWH within the area.
“Upon audit, the SAT issued Audit Commentary Memorandum (AOM) No. 2011-1513 dated December 27, 2011 noting that the visitors security undertaking was grossly overpriced and never executed in accordance with the authorized plans and specs in addition to the contract,” the COA said.
The COA discovered Ricardo answerable for “authorizing the implementation and funds of the overpriced undertaking,” whereas undertaking engineers had been faulted for permitting cost regardless of having reviewed undertaking plans, applications of labor, and detailed value estimates that already confirmed inflated costs. – Rappler.com
