COA flags ghost, incomplete school projects in Davao del Norte

In Talaingod, Davao del Norte, state auditors flag a ghost school building at Kamingawan Elementary School, and undelivered project inclusions at Dulyan Integrated School

MANILA, Philippines – Around P83.26 million worth of school infrastructure projects in Davao del Norte were flagged by the Commission on Audit (COA) as ghost or non-existent, as well as “abandoned and materially incomplete” even though payments were nearly completed. 

In its 2025 annual audit report on the Department of Education (DepEd), COA said the infrastructure work for Kamingawan Elementary School in Talaingod town was a “ghost/non-existent project.”

“No structure was found upon inspection but paid up to 98.8%,” state auditors noted in the report released last Wednesday, September 23. 

The project was for the construction of a one-storey, two-classroom school building with a solar photovoltaic (PV) system, school furniture, and rainwater collector and water system.

A similar project for Dulyan Integrated School in Talaingod was also flagged by COA. 

State auditors said that while the building and the rainwater system were constructed at Dulyan Integrated School, the “solar PV energy system as well as school furniture were not delivered,” but it was already “paid up to 98.80%.”

Both school projects were covered by a contract amounting to P36.36 million under the DepEd’s Last Mile Schools Program (LMSP), according to COA.

The commission also found another problematic LMSP project at Dugayan National High School in Kapalong town.

It had a P25.61-million contract for a two-storey, six-classroom school building with a toilet, rainwater collector, school furniture, solar PV energy system, and water system. It was already paid up to 98.90%.

“Upon inspection, building construction was found to be largely incomplete and abandoned. Only the structural frame had been constructed,” state auditors said. 

COA also reported that distribution transformers, multiple panel boards, and outlets “remain uninstalled and undelivered” for New Casay Integrated School in Braulio E. Dujali town and Carmen National High School in Carmen town. Roofing works at Carmen National High School were also not performed.

The flagged school electrification projects were worth P10.43 million.

Moreover, state auditors found that four classrooms at Datu Balong National High School in San Isidro town were “unrepaired but claimed as implemented and paid up to 98.18% on July 18, 2025.” The contract was worth P7.54 million.

They also said that the construction of health facilities at Gov. Dujali Elementary School in San Isidro was “largely incomplete and abandoned.” It had a price tag of P3.32 million.

COA recommended the issuance of notices of termination of all contracts for the flagged projects, and to initiate blacklisting proceedings against the erring contractors.

State auditors told the Davao del Norte Schools Division Office (SDO) to conduct a fact-finding investigation to determine the accountability of concerned officials, initiate recovery proceedings for all paid progress billings, and file appropriate administrative, criminal, and civil charges against responsible officers and private individuals.

They also told the Davao del Norte SDO to immediately conduct joint validation of completely delivered items to correct accounting records.

Potential ghost students, DepEd employees?

State auditors also flagged deficiencies in monitoring the implementation of the DepEd’s Senior High School (SHS) Voucher Program.

In particular, guidelines for the complete monitoring and validation procedures for the SHS Voucher Program in the Ilocos Region were “not consistently followed,” which undermined the reliability of monitoring results during the audit period. 

According to COA, the DepEd regional office took corrective steps from August 18 to 26.

“While the measures appear responsive to the identified deficiencies, their actual implementation and impact on ensuring compliance, detecting program violations, and validating the existence and eligibility of beneficiaries remain to be established,” state auditors said in a rejoinder. 

They requested the DepEd office in the Ilocos Region to submit the comprehensive results of the 100% on-site monitoring activities, including detailed documentation of validation procedures, discrepancies, and corrective actions. 

The regional office was also told to use a uniform monitoring and compliance report template to “ensure consistent verification of the existence, eligibility, and completeness of records of all SHS [Voucher Program] beneficiaries, and to enhance detection of program violations, including ghost students.”

Meanwhile, there were “inadequate payment controls” in six DepEd regional offices, which “[increased] the risk of overpayment, ghost employees, and erroneous salary payments.”

The deficiencies found were in the established payroll systems, as well as preparation, processing, and payment of salaries.

The DepEd regional offices identified in the audit observations were in the National Capital Region, Ilocos Region, Cagayan Valley, Central Luzon, Calabarzon, and Davao Region. – Rappler.com