Premature Release of Retention Money Totaling P1.36 Billion
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceDPWH released over P1.36 billion in retention money to contractors before the projects were finished or accepted. Many of these projects were behind schedule or done poorly, so releasing the funds early violates the rules meant to protect the government.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"12.16 Moreover, a related audit disclosed that retention money in the total sum of P1,360,849,819.89 collected from 182 infrastructure projects implemented by four DPWH Offices was released to the contractors prior to the completion and/or final acceptance of the projects, which were neither implemented/completed on schedule nor satisfactorily undertaken, contrary to item 6, Annex “E” of the Revised IRR of RA No. 9184."