COA flags P9.22 billion worth of uninsured MMDA assets

MANILA, Philippines — The Commission on Audit (COA) has found that over P9.22 billion worth of properties under the Metropolitan Manila Development Authority (MMDA) remain uninsured, which constitutes a violation of the Property Insurance Law and exposes the government to financial risks.

In its 2025 audit report, COA said it reviewed the compliance of the MMDA with Republic Act No. 656, or the Property Insurance Law, and found that only P4.42 billion out of P13.64 billion worth of insurable properties were covered with insurance as of last year.

This left P9.22 billion, or 67.60 percent, worth of assets without insurance coverage.

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According to the report, the majority of the uninsured properties were pumping stations and floodgates, with over P8.47 billion worth of assets found uninsured, followed by construction and other heavy equipment worth P220 million, and ferry office stations worth P212 million.

Of the uninsured properties, COA noted that P8.86 billion have already been flagged in a previous report but continue to remain without insurance coverage for 2025.

COA said the lack of insurance coverage constitutes non-compliance with Sections 2, 5, and 11 of the Property Insurance Law and exposes the government to risk of loss without right of indemnification.

“Pumping stations and floodgates play a vital role in managing water levels and preventing widespread flooding in Metro Manila, while ferry stations support mobility and decongestion programs,” it said.

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“Damage or loss of these assets due to fire, typhoons, flooding, earthquakes, or other hazards may require substantial government resources for repair or replacement in the absence of insurance protection,” added COA.

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In the report, the MMDA explained that it was unable to secure insurance coverage for certain infrastructure assets because of the lack of land titles or ownership documents that are required by insurers, given that these properties are located on easements, waterways, or areas subject to jurisdictional limitations

The MMDA also pointed to budget constraints due to relatively high insurance premium costs as one of the reasons for the lack of insurance.

“The [Government Service Insurance System or GSIS] does not insure pumping stations if we do not own the land. The problem with that is it will take some time before we could get a title, and in fact, some of these cannot have titles because they are easements,” MMDA Chair Don Artes said in a briefing on Tuesday.

However, he also stressed that the majority of the MMDA’s pumping stations are already insured, and only a “small portion” remain uninsured.

Artes said the agency is currently “exploring other options” to address the issue, such as getting insurance from a private company.

As part of its recommendations, COA urged the MMDA to coordinate with the GSIS and other concerned agencies in determining other acceptable documents or alternative arrangements in providing insurance coverage for properties without land titles.

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It also asked MMDA to include the necessary insurance premiums in its annual budget proposals to ensure the continuous coverage of government assets. /mr