Idle Machinery Not Maintained or Disposed
National Housing Authority · 2024
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What Happened?
Category: Asset ManagementIssue: Non-complianceSome machinery was never used and sat idle for 22 years, causing it to deteriorate and become obsolete, and it was not insured, which violates the law.
Why It Matters
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Original Audit Finding Excerpt
"NHA's inability to properly maintain or dispose of the roll-forming and manufacturing machinery, equipment, and ancillary items, which were never used for their intended purpose and remained idle for 22 years, led to their deterioration and obsolescence, and further exposed them to the risk of loss due to continuous occupancy on a property not owned by the Authority and without insurance, contrary to Section 79 of PD No. 1445."