Philippine Ports Authority Lacks Ownership Documents for P256.05 Billion in Land Assets, Audit Finds
Key Takeaways
- •The Commission on Audit found that 5.42 million square meters of PPA land and reclaimed properties worth P256.05 billion remain untitled, so their legal ownership could not be confirmed.
- •A P1.97-billion unreconciled difference between PPA's accounting and property records cast doubt on the accuracy of reported assets, with property, plant and equipment carried at P389.58 billion.
- •CoA questioned the P2.27-billion first phase of the Offshore Wind Port project in Camarines Norte, which was procured without an environmental impact statement, value engineering studies, or an environmental compliance certificate.
- •PPA carried P864.17 million in unsettled audit disallowances as of Dec. 31, 2025, along with P7.82 million in audit suspensions and P11.76 million in audit charges.
- •Of the 76 audit recommendations from the previous year's report, PPA implemented 34 and closed seven, leaving 35, or nearly half, unimplemented.
The Philippine Ports Authority (PPA) has yet to establish legal ownership of 5.42 million square meters of land and reclaimed properties valued at P256.05 billion because it lacks titles and other ownership documents, the Commission on Audit (CoA) said.
“Parcels of land/reclaimed land with an approximate area of 5.42 million square meters valued at P256.05 billion remained not covered with original/transfer certificates of title and other pertinent documents,” state auditors said in PPA’s 2025 audit report. “Hence, ownership of the land was not ascertained.”
The missing documents also prevented auditors from confirming whether the properties recorded in PPA’s books legally belonged to the agency.
Record-Keeping Gaps Extend Beyond Land Titles
CoA also found a P1.97-billion unreconciled difference between PPA’s accounting and property records, casting doubt on the accuracy of its reported assets. The agency’s property, plant and equipment (PPE) had a carrying value of P389.58 billion as of Dec. 31, 2025. For scale, the land parcels lacking titles are valued at P256.05 billion — roughly two-thirds of the agency’s total reported PPE.
PPA also continued to carry P432.26 million in assets that were unserviceable, damaged, nonexistent, disposed of or demolished, even though they were no longer available for use.
State auditors identified another P155.95 million in invalid prepaid withholding taxes carried over from 2019, along with P104.93 million in uncollected interest and penalties that had not been recorded as receivables.
Offshore Wind Port Preparation Questioned
CoA also questioned PPA’s preparations for the P2.27-billion first phase of its Offshore Wind Port project in Barangay Pambuhan, Mercedes, Camarines Norte.
The agency had not completed key engineering requirements before procurement, including an environmental impact statement and value engineering studies, auditors said. PPA also proceeded without an environmental compliance certificate from the Department of Environment and Natural Resources.
Inadequate project preparation could lead to additional costs from design changes, contract variations and implementation delays, CoA warned.
Unsettled Disallowances and Partial Compliance
PPA also carried P864.17 million in unsettled audit disallowances as of Dec. 31, 2025, along with P7.82 million in audit suspensions and P11.76 million in audit charges.
Of the 76 audit recommendations issued in the previous year’s report, the agency implemented 34 and closed seven, while another 35 — nearly half — remained unimplemented.
CoA generally accepted PPA’s financial statements but said it could not fully verify certain figures because some PPE accounts lacked updated valuations and accounting records did not match property records. These deficiencies prevented auditors from obtaining sufficient evidence to determine whether adjustments to the reported PPE balance were necessary.
— Pexcel John Bacon
Source: BusinessWorld
