Contractors paid cash deposits for road restoration after digging, but these deposits were not returned for more than two years. The practice of taking cash instead of a surety bond violates DPWH rules, and many deposits remain unclaimed, creating a liability on the government's books.

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Original Audit Finding Excerpt

"202 Region Office No. of Projects Amount (In PhP) Total 365 9,219,551.20 12.12 The existence of the above excavation/restoration deposits totaling P9,219,551.20 recorded as trust liabilities in the books which have been outstanding for over two years yet remained unclaimed/unreleased can be attributed to non-compliance with item 6 of DPWH DO No. 26, Series of 2011, which provides that the completed restoration works shall be monitored during the warranty period. A corresponding warranty bond equivalent to 10 percent of the actual restoration cost, callable on demand, shall be held in trust for a period of one year from the date of issuance of a Certi ficate of Completion and can only be released upon the issuance of a Certificate of Acceptance by the issuing office. 12.13 It has been the practice of the DEOs concerned in NCR to collect restoration deposits in the form of cash in lieu of Performance Bond particular ly for those applicants who opted to pay the full r"

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