The NHA did not take care of or sell off old machinery that was never used and sat for 22 years, causing it to deteriorate and become obsolete. It was also at risk of being lost because it was stored on someone else's property without insurance.

Why It Matters

Recommended Actions

• Identify the responsible officers/employees and hold them liable for the loss or wastage of public funds, the lack of maintenance, oversight to claim insurance, and accountability for the missing parts and items
• Implement the disposal of the machinery and equipment, either through lease or sale, to at least recover the cost and related expenses incurred by NHA
• And Transfer the remaining machinery and equipment to an NHA-owned facility, as the as the warehouse where these are being stored was already awarded to a private individual on December 5, 2013.

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, a nd 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."

Source Document