Use of CBIA without competitive public bidding
National Housing Authority · 2023
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What Happened?
Category: ProcurementIssue: Non-complianceThe housing projects were awarded without public bidding, which is against the rules and can lead to poor quality and lack of transparency.
Why It Matters
Recommended Actions
- 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
Original Audit Finding Excerpt
"It is worthy to mention that the Authority has been utilizing the CBIA, a scheme that is intended to recognize the participation of beneficiaries through their organized CAs in the procurement and implementation of housing projects without requiring competitive public bidding. The essence of competitive public bidding, particularly in infrastructure, is to ensure that the Government engages only with competent and capable contractors who can deliver quality projects and related services for the benefit of the public. Refraining from conducting competitive public bidding for developing housing projects not only violates the core principle of transparency in government transactions but also neglects the selection of proponents to be partners of the Government in providing quality, standard, safe and resilient HUs for the people on time."