STATE auditors have flagged a P12-million, artificial intelligence-aided traffic-management system at the South Road Properties (SRP) and four patrol motorcycles that were donated to the Cebu City Government. According to the Commission on Audit’s (COA) 2024 report, these donations were not recorded in the City’s books as of Dec. 31, 2024.
This omission, COA stated, understated the City’s income and its property, plant and equipment accounts. Auditors also cited non-functional traffic equipment and the improper use of the donated motorcycles.
The 2024 report indicates that the AI system and the four motorcycles were donated by Filinvest Land Inc. (FLI), the City’s joint-venture partner in the City di Mare township at the SRP. However, auditors found these assets were still unrecorded because no deed of donation or other supporting documents had been executed.
During a site inspection on Jan. 30, 2025, auditors discovered that the traffic signals were out of service after a traffic accident had disconnected the electrical wires. The City said it could not initiate repairs without a valid deed of donation.
Meanwhile, the four patrol motorcycles, earmarked for SRP traffic management, continued to receive fuel subsidies even though ownership had not been transferred to the City and the units lacked certificates of registration, the report said.
Auditors noted that this practice violates COA Circular 77-61, which prohibits fuel disbursements for government vehicles lacking complete documents, “For Official Use Only” markings and government plates (security vehicles are exempt).
COA recommended that the City expedite the deed of donation to formalize the transfer of the traffic-light system and motorcycles to the City. The auditors further urged the City to stop fuel subsidies for the motorcycles until ownership is transferred and to submit all supporting papers to the City Accounting Office and the Department of General Services for proper recording and monitoring. / KAL