The agency failed to penalize contractors who finished their projects months or years late, missing out on required financial deductions and penalties.

Why It Matters

Recommended Actions

• Management: a. Closely monitor the timelines on the completion of the projects by the contractors
• B. Strictly adhere to Paragraph 9, Annex "E" of the RIRR of RA No. 9184 by: (i) Imposing the corresponding liquidated damages on the contractors for each day of delay by collecting/deducting the same from the progress billings/claims or retention money
• And (ii) Initiating termination/rescission of contracts for infrastructure projects when liquidated damages reaches 10 percent of the total contract price and forfeiting the contractor’s performance security. c. Impose sanctions on erring NHA personnel who may be remiss in their obligations
• And d. Pursue legal actions against the contractors to address the breaches of contract.

Original Audit Finding Excerpt

"Republic of the PAhilippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines CORPORATE GOVERNMENT AUDIT SECTOR CLUSTER 2 — SOCIAL SECURITY June 30, 2023 Ce Mr. JOEBEN A. TAI Rogelo lov General Manager tice o General Manage National Housing Authority — 6 J ZO Ae Z / Elliptical Road, Diliman, Quezon City Pursuant to Section 2, Article IX-D of the Philippine Constitution and Section 43 of Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines, we transmit herewith our report on the results of the audit of the accounts and transactions of the National Housing Authority (NHA) for the years ended December 31, 2022 and 2021. Dear General Manager Tai: The report consists of the Independent Auditor’s Report, Audited Financial Statements, Observations and Recommendations, and the Status of Implementation of Prior Years’ Audit Recommendations. The Auditor rendered a qualified opinion on the fairness of presentation of the financi"

Source Document