The agency paid contractors in advance for projects that were cancelled or stopped, and that money has not been recovered for more than five years, so it may be lost.

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Original Audit Finding Excerpt

"This account consists of: Restricted fund represents funds designated for a special purpose which cannot be used in the operation of the Agency. This account consists of deposit for expropriation, deposit held-in-trust, and deposit held-in-escrow. The decrease of P1.376 billion is mainly attributed to liquidations and/or disbursements of P1.550 billion, entrusted collections from beneficiaries of P80.166 million, reverted funds of P54.963 million, and newly funds from other government agencies of P29.231 million (see Note 14). 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/Ca"

Source Document