Non-recognition of contingent liability from SMAP Agreement
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe NHA owes a large amount related to a terminated project, but this amount is not recorded in its books.
Why It Matters
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Original Audit Finding Excerpt
"The NHA’s contingent liability of P5.196 billion from the principal amount of additional works of P1.189 billion to HGC, now PHILGUARANTEE, relative to the terminated Smokey Mountain Asset Pool (SMAP) Agreement, has not yet been recognized in the books pending the results of the evaluation, reconciliation, coordination/mediation, and compromise with the parties concerned."