The agreement between NHA and a private developer for a property in Quezon City had many problems. It was not approved by the proper authorities, the project did not fit NHA's main purpose, the deal was not good for the government, and important documents were missing. Also, NHA did not submit required reports. This is against the law and regulations.

Why It Matters

Recommended Actions

• Inquire from NEDA on the appropriate remedy for the lapses in not submitting the JVA for its review and evaluation, not securing the approval of the Office of the President, not related to and in furtherance of the primary corporate purpose, mandate or charter of NHA, not responsive to the national development goals and objectives
• And not issuing the Notice of Award to the land developer
• Re-evaluate the JVA and consider amending, as necessary, to ensure that the best interest of the government is protected
• Submit copy of the JVA to the concerned regulatory/oversight government entities
• And Submit annual report on the status of implementation of the JVA to DOF.

Original Audit Finding Excerpt

"135 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION RESULTS OF COA VALIDATION Ref. Audit Observations Audit Recommendations Agency Action Plan Status of Implementati on Reason for Partial/Delay / Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow- up Status of Implemen- tation Actual Implementation Date Remarks Action Plan Person /Dept. Responsible Target Implementation Date From To From To No. 12 page 125 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. a. Secure the NHA's interest in the payment of the HUs to"

Source Document