NHA signed housing contracts without following the required bidding process, which is against the law. This happened because NHA acted as a financier for community-based projects, which is not its proper role.

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

"Agency Action Plan Reason for Partial/Delay/ Ref. Audit Observations Audit Recommendations Target Implementation Status of Non- Action Taken/Action to be Taken Action Plan Person/Dept. Date Implementation | Implementation, Responsible From To if applicable No. 8424, as amended by RA No. 10963, RA No. 11534, RA No. 7279, and Revenue Regulations No. 11-97, may enables the Bureau of Internai Revenue (BIR) to assess NHA for potential tax obligations, penalties, and surcharges. b. Use the correct income tax return and appropriately report all sources of income as taxable or tax-exempt; c. Obtain CTE from the Bureau of Internal Revenue (BIR) if NHA wants to be fully exempted from tax related to social housing mandate and to address any uncertainties regarding the treatment of withheld taxes; d. Recompute and adjust the relevant accounts for Fines and penalties - Business income (Delinquency interest), Receivables, and Withholding Tax at Source to reflect the corrected balance; and e. En"

Source Document