CBIA Scheme Not a Financing Arrangement but Procurement Activity
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe housing authority says it only provides financing to help buyers get homes, but in reality it selects the contractors and decides which projects go ahead. This means it is acting as a buyer of construction services, so it must follow public bidding rules to ensure fairness and transparency.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Our review of documents and operations of NHA revealed that the CBIA of the Authority is not a financing scheme. Though there is Contract Agreement for the buying and selling between a community association (representing housing beneficiaries) and a developer/contractor, it does not prove that the transaction is just between the beneficiaries and developer since the same were executed after the evaluation of the eligibility and capacity of the contractor, feasibility of the project site/s, and awarding of the contract by the Authority. Therefore, the Authority is a procuring entity and not just a mere financer to support the beneficiaries in acquiring units in the project."
