Government-wide Performance Audit Report on
The fast economic growth and rapid urbanization in the Philippines have resulted in the deterioration of the urban environment. One of the urban areas that are currently experiencing this problem is Metro Manila, where conditions are becoming critical due to the escalating generation of solid wastes.
The passage of Republic Act No. 7160 or the Local Government Code of 1991 mandated the Local Government Units (LGUs) to manage their wastes produced from activities within their units, which include a combination of domestic, commercial, institutional and industrial wastes and street litters. Solid Waste Management (SWM) refers to the discipline associated with the control of generation, storage, collection, transfer and transport, processing and disposal of solid wastes in a manner that is in accord with the best principles of public health, economics, engineering, conservation, aesthetics, and other environmental considerations that is also responsive to public attitudes.
The glaring inefficiencies in the disposal of said functions particularly in Metro Manila is evident in the presence of uncollected solid wastes in the streets as well as media documentaries. Improper solid waste management carries implications not only to the environment but also to health and well-being of the future generations.
Relative thereto, the Management Services conducted a government-wide performance audit of SWM of ten (10) LGUs including Pasig City. The City was considered for being at the core of civilization and one of the highly urbanized Cities in the Metropolis.
Pasig City lies approximately on the southeastern end of the Pasig River and is bounded by Quezon City and Marikina on the north; the municipalities of Cainta and Taytay on the east; the City of Mandaluyong on the west; and the municipalities of Pateros and Taguig and the City of Makati on the south. It is divided into two districts composed of 22 and 8 barangays, respectively. Its total land area is 3,100 hectares with population of 505,058 as of December 2000. Considering the National Statistics Office (NSO) average growth rate of 2.30% per annum, the City's population for 2001 and 2002 were estimated to be 516,675 and 528,291, respectively. Its solid wastes generation calculated on the basis of the number of households and establishments were estimated at 2,614 daily or 954,110 cubic meters annually for CY 2001 and 2,423 or 884,395 cubic meters annually for CY 2002.
The SWM function was being undertaken by the Clean and Green Unit under the Office of the Mayor. The Unit has eight (8) motorized monitoring officer responsible for monitoring the daily performance of ten (10) garbage haulers who were commissioned on a clean-up basis. In addition, it also supervises at least 400 street sweepers whose primary responsibility is to ensure that the City's streets and public places are "litter-free". Its budget for contractual obligations amounted to P185.3 million and P149.9 million for CYs 2001 and 2002, respectively.
The objective of the audit was to determine if the solid waste collection function of the City was discharged efficiently and in the most economical manner giving consideration to:
AUDIT SCOPE AND METHODOLOGY
The audit covered evaluation of selected contracts covering January 2001 to June 2002 of seven cities within the National Capital Region including the City of Pasig. The audit also included the evaluation of three cities undertaking SWM by administration for comparative purposes. It called for comparison of accomplishment with plan, results with standards, and practice with policy. The purpose was to determine deviations from those plans, policies and standards. The performance of the Cities/Municipalities was evaluated using the following criteria:
The audit fieldwork was conducted between August and October 2002. The audit examined the City's policies and procedures relative to the selection of contractors and monitoring of contractors' performance. The team reviewed accomplishment reports and documents supporting contractors' billings, conducted interviews with concerned officers and staff, and solicited suggestions from stakeholders. The team also conducted ocular inspection of the contractors' dispatch areas and various areas within the City's political territory to determine the City's solid waste condition.
The audit also covered examination of issues affecting the economic, efficient and effective disposition of SWM function such as resource allocation, risk management and quality assurance processes.
The audit concluded that generally, the City has not efficiently and economically carried out the SWM function through the satisfactory selection of contractors and monitoring of contractor's performance. While the City was able to establish policies and procedures in the selection of contractors, the bidders were not required to submit their ongoing and current commitments with other LGUs. Their capacities therefore to undertake several contracts at the same time were not evaluated. This affected the performance of the contractors as their resources were divided among several LGUs resulting in uncollected solid wastes in a number of instances.
Moreover, the performance of the contractors was not properly monitored due to deficiencies in monitoring system and absence of adequate standards/parameters to measure contractors' performance. The monitoring systems were limited to reporting incidence of uncollected solid wastes and did not include other contracted activities that need to be monitored. As a result, the performance of the contractors could not be properly assessed.
The team also noted that the factors of 1.27 kgs per person and 26.67 kgs per shop used by the City were relatively higher than the factors established under the JICA study, which are 0.552 kgs per person daily and 8.017 kgs per stall/shop daily for CY 2002. The team was not provided with the basis for arriving at such factors. The absence of a valid and acceptable basis in estimating daily solid wastes generation rendered the calculated figures questionable. The reasonableness of the contract cost is doubtful and the collection efficiency of the City could not be measured.
The deficiencies noted could also be attributed to the absence of Solid Waste Management Board (SWMB) required under RA 9003, which is tasked to oversee and coordinate the implementation of the City's SWM Plan to ensure quality SWM operations.
Considering that SWM is a continuing activity of the City and mishandling of this function would have a great impact on the environment and health of the constituents, the City should seriously consider addressing these concerns.
MANAGEMENT'S REACTION TO AUDIT OBSERVATIONS
The results of the audit were discussed with the City Administrator and other concerned City officials on October 21, 2002 for their comments and justifications. Their comments were incorporated in the report, where appropriate.