The agency spent P35 million on machinery that was never used, not maintained, and left idle for 19 years, so it is now broken and missing parts, and is not even insured against theft.

Why It Matters

Recommended Actions

• Identify responsible employees/officers and hold them liable for the loss or wastage of funds as a result of releasing funds for the accepted machineries and equipment without undertaking test run or determining whether they are operational/functional, for the lack of maintenance, for not claiming insurance using posted performance bond, and for the missing part and items;

Original Audit Finding Excerpt

"The roll forming and manufacturing machineries and equipment and ancillary items with carrying value of P35 million were never utilized for its intended use of fabrication of 50,000 housing units, lack maintenance and remained idle for 19 years. Hence, it is no longer operational and some parts and ancillary items are missing. The properties are exposed to further deterioration, loss and obsolescence, as it is kept in the storage building no longer owned by NHA, without any insurance protection against theft."

Source Document