NHA Acted as Financer and Evaded Competitive Bidding
National Housing Authority · 2023
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What Happened?
Category: ComplianceIssue: Non-complianceThe housing agency went beyond its legal role by acting like a bank for housing projects, and by doing so, it avoided the required public bidding process, which is against procurement rules and could lead to overpricing or poor quality.
Why It Matters
Recommended Actions
- Management: Conduct competitive public bidding to ensure the competency of contractors in providing safe, quality and standard HUs and/or buildings within the specified timeframe
- And 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 awarding contracts and should adopt the appropriate governing laws cited in Section 7 of EO No. 423 dated April 30, 2005.
Original Audit Finding Excerpt
"NHA operated outside of its mandate of housing production by purportedly acting as a financer of housing projects through CBIA, resulting in most of their housing contracts evading the conduct of competitive public bidding, contrary to the provisions of EO No. 423 dated April 30, 2005"