COA flags MMDA for failing to insure P9.22-B 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 is a violation of the law and exposes the government to financial risks.

In its 2025 audit report, the 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 insured 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 COA report, the majority of the uninsured properties were pumping stations and floodgates, with over P8.47 billion worth of assets found to be uninsured. Next were construction and other heavy equipment worth P220 million, and ferry office stations worth P212 million.

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Of the uninsured properties, P8.86 billion had been flagged before by the state auditor in a previous report but continue to remain without insurance coverage for 2025.

The COA said the lack of insurance 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.

Budget constraints

“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 noted.

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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,” it added.

According to the COA report, the MMDA had explained that it was unable to secure insurance coverage for certain infrastructure assets because of the lack of land titles or ownership documents, which need to be submitted to insurers, given that these properties are located on easements, waterways or areas subject to jurisdictional limitations.

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The MMDA also cited budget constraints due to relatively high insurance premium costs as another reason.

“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 at a briefing on Tuesday.

Recommendations

However, he also stressed that the majority of MMDA pumping stations are already insured, and only a “small portion” remain without coverage.

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

As part of its recommendations, the 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 the MMDA to include the necessary insurance premiums in its annual budget proposals to ensure the continuous coverage of government assets. /cb