Idle assets and disputed land from terminated projects
National Housing Authority · 2022
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What Happened?
Category: Asset ManagementIssue: ImpairmentThe agency is holding onto old equipment and land from cancelled projects that they cannot sell or use, and some properties are tied up in lawsuits, which could mean these assets are worth less or are stuck.
Why It Matters
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Original Audit Finding Excerpt
"Other assets include an investment of P35 million in a joint venture with a certain private company. Following the termination of the joint venture in CY 2005, the custody of idle machinery and equipment was transferred to NHA. The equipment had been offered for bids, but there were no takers. The NHA is looking for other means to dispose of these assets. The account also includes the cost of land amounting to P618.708 million under a terminated project due to geographical location issues, as well as projects under court litigation amounting to P24.340 million, which have encumbrances and legal claims attached to the land titles."