The agency's partnership with a private developer has many problems, like using old property values, not checking costs, and not following rules, which may have shortchanged the government.

Why It Matters

Recommended Actions

• Formulate a policy or amend the existing one to include provisions in all future JVAs requiring an independent land valuation conducted within one year prior to the execution or financial closing of the agreement, to ensure that the appraised value reflects prevailing market conditions at the time of contract finalization.

Original Audit Finding Excerpt

"Significant deficiencies were noted in the valuation, implementation, and regulatory compliance of the Joint Venture Agreement (JVA), encompassing the use of outdated land valuation, unverified reimbursement claims, delayed relocation of ISFs, questionable financial assumptions and use of government funds, non-submission of required reports, and lack of appropriate approvals and oversight from mandated agencies, contrary to the provisions of EO Nos. 58 and 423, Memorandum Order No. 127, and the 2008 National Economic Development Authority (NEDA) JVA Guidelines may have resulted in undervaluation of NHA's equity share, delayed realization of expected financial returns, and weakened transparency, accountability, and overall profitability of the JVA."

Source Document