Shut down MMDA workers’ inn – COA

MANILA, Philippines – The Commission on Audit (COA) is calling for the closure of one of two workers’ inns built by the Metropolitan Manila Development Authority (MMDA), saying the government has lost more than P21 million since the inns started operating three years ago.

Then MMDA chairman Bayani Fernando spearheaded the construction of the inns – one in Port Area and the other in Tondo – to provide temporary but affordable shelter to Manila’s informal settlers, street dwellers, and workers.

“The operation of MMDA Workers’ Inn I and II for the period from 2007 to Dec. 31, 2010 posted an aggregate loss of P21,090,346.26 due to the low occupancy rate in Workers’ Inn II (Tondo),” state auditors said in a 2010 report.

The COA blamed the losses on uncomfortable sleeping conditions in the capsule beds in the inns, which operate on two 10-hour shifts. A tenant pays at least P30 per shift, excluding the amount needed for the coin-operated shower.

State auditors said the Tondo inn registered an increasing net loss over the years from 2008 to 2010, while the Port Area inn registered a net income of P2,582,939.76 for 2010 but posted net losses in previous years.

The COA said the low occupancy rate and the “remarkably high” operational costs such as electricity, water, telephone, salaries and wages, security services, office supplies and other maintenance and operating expenses of the inns have forced the MMDA to use funds intended for other purposes.

The continued operation of both facilities is “depleting the budgetary requirements of other projects of the agency,” the state auditors said.

The COA said only 77 out of 711 beds at the Tondo Inn and 385 out of 714 beds at the Port Area inn were occupied when the audit team conducted an ocular inspection.

The three-deck beds are made of polyethylene, pink for women and blue for men. The COA said the tenants preferred to sleep on the floor rather than the beds.

“The place is humid, dark and not well ventilated,” the inspection team described the Tondo inn, stressing that in order for the government to be spared from further losses, the inn should be closed as soon as possible.

The COA said since the Port Area inn may continue to operate since it earned money in 2010, a feat that can be duplicated in the future with proper management and monitoring of expenses.

“Some of the occupants in the (Port Area inn) were staying for more than three years already, while others were for about a month and some were for just a week,” the audit team’s inspection report said.

“The reasons for staying in the inn are its being inexpensive, the place is secured and the proximity of the inn to their places of livelihood or work. Others stay while following up or waiting for their job placement abroad,” the report added. –Michael Punongbayan The Philippine Star