Reimbursement of P500 Million to Contractor Without Independent Validation
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Internal ControlThe agency paid a contractor 500 million pesos without properly checking if the amount was fair or if all the costs were legitimate.
Why It Matters
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Original Audit Finding Excerpt
"The reimbursement of P500 million to the contractor was presented as based on Board actions and contract terms, but Management has not demonstrated whether this amount was independently validated or if cost components such as opportunity costs and 'cost of money' were subjected to due diligence raising concerns on reasonableness and government exposure."