Kamanggagawa Partylist Representative Elijah “Eli” San Fernando launched a scathing critique of the Commission on Audit (COA) during a budget hearing at the House of Representatives, accusing the agency of delayed action on fraudulent flood control projects and calling for the resignation of Commissioner Mario Lipana over alleged conflict of interest.
San Fernando questioned COA’s timing in initiating fraud audits, noting that the commission only began investigating after the corruption scandal had already erupted. “It seems we only started digging once the issue exploded,” he said. “There could be many more ghost and anomalous projects that slipped through — and we’re only talking about flood control. What about other infrastructure projects?”
COA Chairperson Gamaliel Cordoba disclosed that in the past decade, the commission issued 8,294 Notices of Suspension totaling P303.6 billion, 1,985 Notices of Disallowance worth P5.79 billion, and 54 Notices of Charge amounting to P8.8 million — all involving the Department of Public Works and Highways (DPWH).
Despite these figures, San Fernando demanded transparency, urging COA to release the names of supervising auditors assigned to DPWH projects, especially in regions like Bulacan and Laguna where irregularities have surfaced. He warned that some auditors may have been complicit in the anomalies.
The lawmaker also raised red flags over Commissioner Mario Lipana, whose wife heads Olympus Mining and Builders Group — a firm that secured over ₱200 million in DPWH flood control contracts. “These awards were granted while Lipana was serving as commissioner of the very agency tasked to audit DPWH projects,” San Fernando pointed out.
Cordoba confirmed the connection and acknowledged the potential conflict of interest under Republic Act 6713, the Code of Conduct and Ethical Standards for Public Officials. Assistant Commissioner Lucila Isidro added that a Notice of Disallowance had already been issued regarding transactions involving Lipana’s wife.
San Fernando didn’t mince words: “This puts the integrity of the entire commission into question. How can we expect COA to curb corruption if one of its commissioners is linked to a contractor benefiting from projects they’re supposed to audit?”
Outside the hearing, San Fernando called for Lipana’s resignation, saying, “Anyone tainted by corruption should not remain in office. If COA itself harbors anomalies, how can we trust it to protect public funds?”
He also criticized COA’s failure to detect the conflict until it was exposed by media reports. “If the press hadn’t uncovered this, would COA have remained unaware? It’s alarming that the agency meant to safeguard the nation’s coffers missed such an obvious conflict.”
San Fernando concluded with a strong warning: “There’s reason to believe that some within COA are part of the very syndicate they’re supposed to investigate. This isn’t just negligence — it’s collusion. We must hold everyone accountable, from contractors and politicians to the auditors themselves. No holy cows.”

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