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Unresolved garnishment of restricted funds despite court ruling

National Housing Authority · 2022

Severity: HighRecommendation: Unknown

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What Happened?

Category: Financial ManagementIssue: Non-compliance

The agency has over P294 million in funds frozen because of a legal case that it won back in 2016; however, even after several years, the agency has not been able to get the money released due to unresolved procedural steps.

Why It Matters

Recommended Actions

No recommendations are available for this finding yet.

Original Audit Finding Excerpt

"The account also includes current and savings accounts totaling P294.266 million that were garnished by PVB pursuant to Construction Industry Arbitration Commission (CIAC) Case No. 13-2014, involving a contractor and NHA. The Court of Appeals issued a final and executory decision on October 16, 2016, reversing the final award, dismissing the complaint and denying the contractor’s Petition for Review. On November 8, 2018, NHA filed a Very Urgent Motion to Lift/Cancel Notice of Garnishment and Release Order of Money to CIAC. Subsequently, on November 21, 2018, NHA requested PVB to immediately unfreeze the deposited funds. In response, PVB's Litigation Department directed NHA's request to the handling Sheriff of Bulacan to issue the necessary order to lift the garnishment. Despite NHA's efforts, as of September 27, 2021, the status of the filed Very Urgent Motion remained unknown, as the requested information from CIAC was not received."

Source Document

10-NHA2022_Part1-Notes_to_FS.doc

2022 AAR · 12 files