Unrecouped Advances to Contractors
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe government paid contractors large sums in advance, but after the projects ended or were cancelled, the contractors did not pay the money back. With over P783 million in unreturned advances, public funds are at risk of being lost.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Advance payments amounting to P783,529,617.36 were not recouped from the contractors whose projects were already completed, terminated or rescinded or awaiting contract termination as at year end, contrary to item 4.3, Annex “E” of the Revised I mplementing Rules and Regulations of RA No. 9184, which may result in potential loss of government funds if not recovered from the contractors concerned."