Advance payments made for housing units not substantially completed
National Housing Authority · 2023
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Financial ManagementIssue: Non-complianceThe National Housing Authority paid contractors for housing units that were not yet finished. This happened because NHA did not properly check the status of the projects. As a result, they made advance payments, which is against the rules.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"The NHA Management was not able to properly evaluate the status of completion and delivery of housing projects resulting in the payment of P426.104 million for 1,087 housing units not considered as substantially completed housing units, thereby, allowing advance payments to the Contractors in the delivery of expected output, contrary to Sections 4.1, 33 and 88 of PD No. 1445 and Annex B of COA Circular No. 2012-003."