The Commission on Audit’s (COA) annual report released this January again identified Davao City’s anomalous report on local government properties and funds. The agency specifically pointed out the “unreconciled” inventory of property, plant, and equipment (PPE) for 2024. Mayor Sebastian Duterte currently leads city.

COA’s latest audit found that Duterte’s reported ₱8.197 billion worth of PPE did not match the city’s actual physical assets and equipment. As a result, COA deemed the report unreliable, and can be subject to possible questions and anomalies. The unverified and uninspected PPE included flood control systems, power supply networks, telecommunications infrastructure, buildings, educational facilities, and hospitals. Auditors said these could not be found, inspected, or confirmed.

COA criticized Davao City’s inflated PPE report, saying the listed assets might be “ghost” or nonexistent.

According to COA, the city’s reported figures could artificially inflate Davao City’s real value. This could be used to present a false picture to investors, lenders, and the public about the city’s actual financial status.

Dutertes’ anomalous actions

Submitting unreconciled PPE inventories is not new for Davao City. It follows the long-standing Duterte family pattern of reporting “ghost” assets and employees.

In 2021, COA already flagged ₱9.489 billion in questionable PPE reporting by the city then ruled by current VP Sara Duterte. In 2024, siblings Sara and Sebastian supposedly formed an “inventory committee” to verify the city’s assets. Reports said inspections began in June 2024 and were supposed to be completed by June 2025. But by February 2025, only 43.74% of assets had been verified as existing. There has been no report that the Dutertes completed the inspections to date. It appears they have willfully neglected the process.

Failed disaster response

The Dutertes’ mishandling of disaster response funds adds to their record of anomalies.

COA reported that only ₱60.79 million, or 13.86%, of Davao City’s ₱438.75 million disaster fund was used in 2024. The agency criticized the lack of implementation of programs and projects meant for disaster risk reduction, preparedness, mitigation, response, and recovery.

According to COA’s audit, the Dutertes completed only 7 out of the 31 projects under the Local Disaster Risk Reduction and Management Fund (LDRRMF) in 2024. Nineteen projects were left unfinished, while five were not even started.

COA said delays in many projects adversely affected timely and crucial service delivery to target beneficiaries. The agency reminded Davao City that LDRRMF projects are urgent because of their “critical role” in disaster response. It ordered the city to immediately implement the programs, not only those for 2024 but also the previous years that the Dutertes had similarly neglected.