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COA found engineering deficiencies and poor contract management caused a 574-day suspension and delays to five Cebu City Medical Center projects worth P1.90 billion.
The Commission on Audit has flagged deficiencies in detailed engineering and poor contract management as the causes of a 574-day suspension and delays affecting five infrastructure projects for the new Cebu City Medical Center, with a combined contract amount of P1.90 billion. The findings were detailed in the commission's 2025 Annual Audit Report, which also revealed that P1.13 billion had already been spent at the time of the audit.
Engineer Brian Pasilan told a Sept. 29, 2026, executive session of the Cebu City Council that the hospital's electrical condition is very unsafe. He cited improper grounding, generator synchronization issues, faulty wiring, and untested systems.
Cebu City Medical Center Audit Findings
State auditors said the lack of required technical documents and inadequately justified contract extensions prevented proper inspection of the five projects. The deficiencies spanned multiple phases of construction.
For the initial phases, which cover interior masonry works and mechanical, electrical, plumbing, and fire protection systems on the fifth and sixth floors, the City's Department of Engineering and Public Works failed to submit vital technical documents. Without these records, auditors could not complete their technical evaluation.
The department attributed the missing files to past calamities and reported only a partial retrieval of the documents so far.
In the third phase, the project stalled for a 574-day suspension without sufficient supporting documentation. Auditors flagged the delay, prompting the City Government to demand formal justifications from its project engineers and to ask the accounting office to assess whether the stoppage resulted in overpayments to contractors.
Electrical Safety and Uncommissioned Systems
Pasilan's assessment identified multiple risks, including improper grounding systems, generator synchronization issues, faulty wiring, and questionable fire pump connections. He noted that several installations did not meet specifications and that systems remained largely untested and non-functional.
The assessment echoes audit findings for the fourth phase, where auditors demanded an explanation for why installed systems were left uncommissioned and non-operational and why there were excess materials not part of the original bill of quantities.
These problems are now stalling current progress because unfinished and defective works must be repaired before succeeding phases can move forward. However, because the City pushed forward with new phases without properly resolving the old ones, accountability for the defects remains unclear.
Contract Accountability and Corrective Actions
During the council session, Councilor Dave Tumulak pointed out that some earlier contracts had not been properly terminated. He stressed that the City needs to clarify the obligations left by former contractors so current builders can proceed without absorbing liability for work outside their original scope.
To address the audit findings and prevent similar delays, the City Government committed to evaluating all uncompleted hospital contracts for possible lawful termination, completion, or takeover. The engineering department is also set to adopt stricter detailed-engineering checklists for future infrastructure procurement.
The corrective actions are targeted for implementation between Aug. 5 and Sept. 5. The audit report and the council session underscore the need for stronger oversight to ensure the hospital's completion and safety.
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