The joint venture agreement had many problems: land values were outdated, some claims were not verified, relocation of informal settlers was delayed, and there were questionable financial assumptions. This could mean the government got less than its fair share and the project was not transparent. The agency was told to fix these issues, but none have been addressed yet.

Why It Matters

Recommended Actions

• Formulate a policy or amend the existing one to include provisions in all future JVAs requiring an independent land valuation conducted within one year prior to the execution or financial closing of the agreement, to ensure that the appraised value reflects prevailing market conditions at the time of contract finalization.

Original Audit Finding Excerpt

"Page 44 of 90 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION AS AT AUGUST 31, 2025 RESULTS OF COA VALIDATION Ref. (No. in the AAR) Audit Observations Audit Recommendations Agency Action Plan Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow-up Status of Implementation Actual Implementation Date Remarks Action Plan Person/ Department Responsible Target Implementation Date From To From To the non -compliance with the building height limit under the Quezon City Zoning Ordinance, contrary to Sections 301 and 303 of the National Building Code of the Philippines (PD No. 1096), resulting in the delayed implementation of the project and increased the risk of financial loss for NHA. b. Expedite the securing of the building permit and other clearances; c. Observe proper storage of the materials left on site; and d. F"

Source Document