Unrecouped advances to contractors totaling P1.505 billion across various project statuses
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceDPWH had advanced more than P1.5 billion to contractors, but had not recovered those advances even when projects were completed, terminated, or left sitting dormant for years, violating contract rules and risking permanent loss of funds.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"Advances to Contractors amounting to P 1,505,405,378.41 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."