Unreleased or unclaimed guaranty security/deposits
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceContractors and suppliers left behind security deposits and retained money after their projects were done. Even after the warranty period was over, DPWH did not give this money back, leaving over P67 million sitting unclaimed and breaking the rules.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Retention money, warranty securities, and excavation/restoration deposits totaling P67,510,480.26 collected and retained by DPWH Offices as guaranty security/deposits were unreleased or unclaimed by the contractors despite the lapse of the warranty period and/or completion of its intended purpose, contrary to item 6, Annex “E” and Section 62.1 of the Revised IRR of RA No. 9184."