Millions of pesos in security retentions were given back to contractors early without requiring guarantee bonds to cover potential construction defects.

Why It Matters

Recommended Actions

• Submit the Individual and Certificate of Inspection and Acceptance Report and require the developers to remedy any defects noted before the release of the remaining balance of the retention money.

Original Audit Finding Excerpt

"Agency Action Plan Reason for > Partial/Delay/ Ref. Audit Observations Audit Recommendations - Target Implementation Status of Non- Action Taken/Action to be Action Plan PersoniDept. Date implementation | Implementation, Taken Responsible From To if applicable - Memorandum dated May 30, | 2022 (Request for Funding Requirements/Issuance of CBAs for Various Variation Orders/Extra Work Orders) cy 2020 Administered trust funds a. Strictly comply with the Accounting Not implemented This finding was reiterated AAR entrusted by DPWH, DOTr, OP | provisions of MOA, GAA for FY Department with modification in Observation | and NGC amounting to P3.734 | 2020 and PD No. 14465 relative . ” No. 9, page | billion, 796.325 million, | to the use of trust fund by FMD Observation No. 26, 103 P942.383 million and P50 | spending only for the specific Annex B of this Report. million, respectively were used | purpose for which the trust was Region 9 Please refer to the by NHA for other housing | created or"

Source Document