CAGAYAN DE ORO CITY — The city government has been asked by the Department of the Interior and Local Government (DILG) to explain delays in a P250-million infrastructure project, with the possibility that the funds may be returned if requirements are not met.
The issue centers on a two-phase multipurpose facility funded under the 2024 Local Government Support Fund–Financial Assistance to Local Government Units (LGSF-FALGU).
Records show the amount has remained unused since it was transferred by the Department of Budget and Management (DBM) in May 2024.
In a Feb. 24 letter, DILG-10 Director Bruce Colao issued a Notice of Non-Implementation to Mayor Rolando Uy, citing that both Phase 1 (P150 million) and Phase 2 (P100 million) are still tagged as “not yet started” in the agency’s SubayBAYAN monitoring system.
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Colao said key project requirements remain incomplete, including a Sanggunian endorsement, right-of-way clearance, and an Environmental Compliance Certificate (ECC).
“As of this date, the projects remain tagged as ‘not yet started’… and the previously requested documentary requirements remain unsubmitted,” the DILG letter stated.
The agency warned that continued non-compliance may lead to appropriate action under existing rules, including the possible reversion of funds, as provided under DBM Local Budget Circular No. 155.
City Engineer Joel Momongan earlier cited the adoption of a national directive on aligning construction costs with market prices as a factor in the delay.
However, the DILG said the explanation does not address the lack of required documentation and progress on the ground.
Separately, the Commission on Audit (COA), in its 2024 Annual Audit Report, noted low utilization of certain development funds and reminded the city of rules requiring unused balances to be returned to the source agency upon project completion or non-implementation, under COA Circular No. 94-013.
COA has recommended that the unused P250 million be remitted back to the DBM or the Bureau of the Treasury, subject to applicable rules.
City officials have yet to issue a formal response. Requests for comment sent by Gold Star Daily to the Mayor’s Office and relevant departments were unanswered as of Friday, April 17, when City Hall offices were closed under the local government’s compressed four-day workweek.
