Use of National Government Subsidy for Relocation Costs Contrary to JVA Provisions
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency used government subsidy money to pay for relocation costs that the joint venture partner was supposed to cover, which cost the government extra money.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Review of documents disclosed that the NHA received allotments totaling P450.000 million from the NG, sourced from unprogrammed funds, intended for the Relocation Project. Of this amount, P375.832 million was utilized for the acquisition of land, developed lots, and housing units in Barangay Graceville, San Jose Del Monte, Bulacan, for the relocation of ISFs from the xx Property. However, Article 1.3 of the JVA explicitly provides that relocation costs for 8,985 ISFs, estimated at P203,000 per family based on the March 16, 2009 census, shall be financed by the Relocation Fund under the JVA. This provision indicates that the financial obligation of relocating ISFs should be borne by the project proponent or as part of the joint venture financing arrangement and not charged to the NG."