NHA's joint venture agreement with a private partner has serious problems: the land used in the deal was valued using outdated information, some reimbursement claims were not properly verified, relocation of informal settlers is delayed, financial assumptions are questionable, required reports were not submitted, and approvals were not obtained, potentially costing the government money.

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the valuation, implementation, and regulatory compliance of the Joint Venture Agreement (JVA), encompassing the use of outdated land valuation, unverified reimbursement claims, delayed"

Source Document