A major joint venture agreement suffered from severe oversight and compliance failures, such as using outdated land values, failing to clear out settlers on time, and lacking proper government approvals, which could undervalue the government's share and delay returns.

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

"zncy Action Plan Reason for . . . Target Implementation Partial/Delay/ | . Ref. Audit Observations Audit Recommendations Action Plan Person/Dept. Date Status of Non- Action Taken/Action to be Taken Responsible Implementation Implementatio From To n, if applicable with a roof deck (previously the 19-storey NHA Office a. Comply with the provisions of Not Implemented a and b: Tower) with a contract | Sections 301 and 303 of the The Implementing Office has complied with the amount of P2.140 billion | Implementing Rules and requirements outlined in the series of Letters of without a building permit, | Regulations of the National Instruction (LOIs) issued by the QC Building Official due to the non-compliance | Building Code of the Philippines (Annex B.16). The IO is still awaiting further with the building height limit | (PD No. 1096); instructions from the BO. under the Quezon City Zoning Ordinance, contrary b. Expedite the securing of the Not Implemented to Sections 301 and 303 of | buil"

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