The Commission on Audit (CoA) has flagged the Baliwag city government in the province of Bulacan for failing to insure R320 million of its assets in the Government Service Insurance System (GSIS), and risking major infrastructure losses due to non-payment disasters.
State auditors said only P84 million, or 20.8%, of Baliwag town property was insured. This leaves P320 million, or 79.2%, of properties vulnerable to natural disasters.
This violates the Building Insurance Act of 1951 and the CoA circular, which requires all government assets and buildings to be insured by the GSIS, and leaves the local government unit (LGU) without compensation for damages.
The Baliwag city government did not immediately respond to an email and Facebook Messenger message seeking comment.
“A total of P320,096,997 or 79.2% of the City’s uninsured assets were not covered by the Government Service Insurance System General Insurance Fund, which put the city at risk of not being covered at all. damage or loss of buildings due to fire, earthquake, hurricane, flood, and other force majeure,” the CoA report said in part.
An estimated P151 million worth of machinery and equipment belonging to the LGU is uninsured, while construction materials amounting to P93 million have been left at risk without financial compensation. State auditors also noted other transportation worth P75 million without insurance. – Kenneth Christiane L. Basilio
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