Inclusion of P500 million reimbursement in the TOR lacked proper evaluation
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceA P500 million payment to an old contractor was included in the deal without anyone checking if the amount was fair or reasonable. This reduced the government's share of profits from the project.
Why It Matters
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Original Audit Finding Excerpt
"there is still a need to evaluate the reasonableness of the compromised amount of P500 million, not merely because NHA no longer shouldered the payment, but because the amount became part of the developer's equity contribution"