Loss of funds due to termination of warehouse contract
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-compliancePoor planning caused the agency to terminate a warehouse construction contract after paying advances, resulting in millions in wasted public funds when the site overlapped with a new office tower project.
Why It Matters
Recommended Actions
- Comply with the provisions of Sections 102 and 104 of PD No. 1445 by exercising due diligence and implementing long-term plans to avoid unnecessary losses to the NHA.
Original Audit Finding Excerpt
"The Head of the Agency’s failure to exercise diligence of a good father of a family resulted in a loss amounting to P2.158 million due to the termination of the Contract for the Construction of NHA GSD Warehouse located at NHA Main Compound, contrary to Sections 102 and 104 of PD No. 1445."