CBIA Contracts Awarded Without Competitive Bidding and Missing Documentary Requirements
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency awarded contracts for land acquisition without going through the required public bidding process. Also, many required documents were missing or submitted late, which is against the rules.
Why It Matters
Recommended Actions
- Management: a. Revise the provisions of the CBIA Omnibus Guidelines per MC No. 2021-027 dated August 2, 2021 to comply with the requirement of competitive public bidding prior to the awarding of contracts and to align and adopt appropriate governing laws cited in Section 7 of EO No. 423 dated April 30, 2005
- B. Submit the following documentary requirements for the 21 reviewed CBIA contracts: Articles of Incorporation, By-Laws, Corporate Information Sheet and Certificate of Registration of the CAs
- Master list of Beneficiaries: Land title or Deed of Sale/Assignment in favor of the contractor
- Local Inter-Agency Committee Resolution endorsing the proposal of the proponent
- Appraisal reports from two accredited private appraisers and a government agency
- And Certificate of Budget Allocation. c. Submit the following documentary requirements for the 3 reviewed Non-CBIA contracts: Land title or Deed of Sale/Assignment in favor of the contractor
- Appraisal reports from two accredited private appraisers and a government agency
- And Certificate of Budget Allocation. d. Submit the copies of housing contracts with complete supporting documents within five days from its execution pursuant to COA Circular No. 2009-001.
Original Audit Finding Excerpt
"For CY 2022, a total of 21 contracts for the acquisition of developed land with completed housing units through Community Based Initiative Approach (CBIA), which the Authority treats as a financing scheme that supports contracts between the community associations (CAs) and developers/contractors, have not undergone the required competitive public bidding process mandated for government transactions, contrary to the provisions of EO No. 423 dated April 30, 2005. In addition, 22 contracts were submitted late and two contracts were not submitted at all for CY 2022, contrary to the provisions of COA Circular No. 2009-01 dated February 12, 2009."