Advance Payments for Incomplete Housing Units
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency paid contractors over P426 million for housing units that were not yet substantially completed, which is not allowed. This resulted in improper advance payments.
Why It Matters
Recommended Actions
- B. Refrain from making advance payment or paying more than the actual number of developed lots and completed Hus.
Original Audit Finding Excerpt
"The NHA Management was not able to properly evaluate the status of completion and delivery of housing projects resulting in the payment of P426.104 million for 1,087 housing units not considered as substantially completed housing units, thereby, allowing advance payments to the contractors in the delivery of expected output, contrary to Sections 4.1, 33 and 88 of PD No. 1445, and Annex B of COA Circular No. 2012-003."