MMDA called out as over P1B goes unused in 2024 budget

The Commission on Audit (COA) has called out the Metropolitan Manila Development Authority (MMDA) for leaving P1.028 billion in unobligated funds from its 2024 budget, affecting the delivery of services, including flood management.

Based on COA’s 2024 audit report released this month, the MMDA disbursed only 75.25 percent of its total allotments or 82.42 percent of its obligations by year-end, leaving more than P1.028 billion in unused appropriations.

“Budget under-utilization was mainly due to delays in project implementation and procurement, which hindered the timely delivery of services, delayed socioeconomic benefits for Metro Manila residents, and increased the risk of fund reversion to the General Fund,” state auditors said.

One of the affected projects was the Metro Manila Flood Management Project Phase 1, where budget utilization was slow. The MMDA project management office cited delays in onboarding consultants, COVID-19 restrictions that limited community engagement and procurement and frequent changes in task team leaders that caused inconsistent guidance. Other causes were multiple shifts in MMDA leadership that altered project priorities and administrative factors such as delivery extensions, contract extensions, time suspensions and variation orders.

Slow delivery of services

These issues, according to COA, impacted the disbursement of 2023 continuing appropriations, delayed the completion of sub-projects worth P470.6 million, and risked incurring financial costs from undisbursed loan balances, thus ultimately slowing the delivery of flood management benefits.

See Also

December 5, 1996: Ramos says he OKd land deal

Citing Section 2 of Presidential Decree No. 1445, state auditors emphasized that all public funds must be managed efficiently, economically, and effectively. They also referenced Section 3.3 of the Department of Budget and Management’s National Budget Circular No. 592, which provides that unused appropriations are only valid for a set period, after which they may lapse and revert to the General Fund.

In response, the MMDA agreed to conduct regular assessments of disbursement performance, enhance coordination with contractors, and institute a more proactive financial monitoring system to ensure more efficient utilization of allocated funds.