Unrecouped Advances to Contractors and Consultants
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe department had advanced 1.5 billion pesos to contractors that were never recovered, even after projects were finished or stopped, violating procurement rules.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"Advances to Contractors amounting to P1,505,405,378.41 remained unrecouped from contractors and consultants despite project completion or termination, or awaiting contract termination contrary to item 4.3, Annex “E” of the Revised Implementing Rules and Regulations of Republic Act No. 9184, which highlights challenges in financial recovery and project closure, underscoring the need for timely financial reconciliation to ensure effective fund management, accurate reporting and accountability in the use of public resources."