Inactive or unrenewed performance bonds for projects with extended timelines
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency failed to ensure that performance bonds for certain projects were active or renewed, which poses a risk to the authority and violates procurement rules.
Why It Matters
Recommended Actions
- Closely monitor the expiration and the required adjustments of the performance security, ensuring that appropriate measures are taken against the contractors or developers who deviate from the prescribed guidelines
- And
Original Audit Finding Excerpt
"or with extended construction timelines, funded through calamity funds, are either inactive, not renewed or their renewal status cannot be assessed, posing a significant tisk to the Authority, and contravening the provisions outlined in the Revised Implementing Rules and Regulations (RIRR) of RA No. 9184."