Tree replacement funds improperly included in contract cost and paid to contractor instead of DENR
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceMoney meant for replacing trees cut down during a road project was given to the contractor as part of the contract instead of being sent directly to the environment department as required. This is against the joint rules and may delay or prevent the tree replacement from happening.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"In addition to the noted lacking documentary requirements above, the funds allocated amounting to P820,667.50 for the replacement of trees removed in the construction of project of Pangasinan 2nd DEO in Region I was included as part of the contract cost and payments were made to the contractor instead of transferring the same to DENR contrary to Item VI of DPWH -DENR-DSWD Joint Memorandum Circular (JMC) No. 01, series of 2014 dated July 3, 2014, re: Guidelines for the Implementation of the DPWH-DENR-DSWD Partnership on the Tree Replacement Project, which requires DPWH to allocate and transfer funds directly to DENR RO."