Despite enjoying an allocation of nearly P6.7 billion, the Free Wi-FI Program assigned to the Department of Information and Communications Technology (DICT) scored a dismal 15 percent accomplishment even as it was tainted with irregularities, the Commission on Audit (COA) has reported.
The 2019 COA annual audit report for DICT that was released late December, 2020 also noted that the DICT received P398 million from the Department of Science and Technology “based on invalid obligation”, adding that there were irregularities in the “disbursement of public funds” in connection with the release of P10 million in operating expenses that was taken from transferred DOST funds in 2015.
“Moreover, the P489,566.00 expended for kick-off meetings is deemed unnecessary while the use of the funds to pay performance security refunds for other projects in the total amount of P403,689.35 is deemed irregular,” the audit report stated.
The fund transfer from DOST to DICT was made in connection with the execution of a Memorandum of Agreement by the two agencies for the joint collaboration in the implementation of the DOST-PAGASA’s All Weather Communication System Program.
COA demanded a halt in the payment of expenditures related to the project and asked that the DICT return the unused funds to DOST-PAGASA.
DICT officials justified its receipt of the P398 million as it stressed that “due diligence” was observed such that they sought the advise of the Department of Budget Management on the proper utilization of the trust fund.
They added that the kick-off meetings were aimed at helping “achieve proper implementation of the project.”
“The Free Wi-FI Program of the DICT had activated 3,251 or a mere 15 percent of the target 22,034 public Wi-Fi hotspots as at 31 December 2019 despite the provision of a total amount of P6,702,835,6612.39, thereby resulting in the non-activation of 18,783 public Wi-Fi hotspots, which substantially delayed the full realization of the intended benefit by providing free Wi-Fi access to the public,” COA reported.
The report added: “Moreover, the extension of procurement contracts with various suppliers were not compliant with certain stipulations of the contracts as well as pertinent provisions of the Revised IRR of RA 9184 (Government Procurement Act) and the Government Procurement Policy Board (GPPB) issuances.”
DICT is the sole agency tasked to implement the Free Wi-FI Internet Access in Public Places Program or ”Pipol Konek” aimed at accelerating government efforts in enhancing internet accessibility for Filipinos to boost economic. social and educational opportunities.
The project has been on-going for five years by the time COA made its audit review of DICT.
Upon review of the program, COA disclosed that there has been a low rate of implementation of the procurement projects by the DICT, the Philippine International Trading Corporation as the procurement agent and the United Nations Development Programme.
Audit showed 22 out of the 30 contracts DICT entered into with various suppliers for the procurement of communication links were “either partially implemented/terminated, suspended or not yet implemented.
“Substantial delay” in the procurement activities made through the PITC were also discovered.
According to COA only two out of the 86 procurement contracts were fully accepted and operational as of the end of 2019, thus indicating a “very low rate of implementation.”
Audit examiners were also dismayed at the delay in the procurement activities for the implementation of the DICT-UNDP partnership.
“Overall, there was a very slow implementation of the Free Wi-FI Program either through procurement contracts, engagement of the PITC and partnership with the UNDP,” the audit report stated.
It added: ”With this condition, the intended result of the Philippine Digital Strategy was not attained which ultimately delayed the realization of the intended benefit of providing Wi-Fi access to the public.”