Millions in retention money were released to developers without required substitute bonds or warranties, leaving the agency unprotected against potential project defects.

Why It Matters

Recommended Actions

• Submit the Individual and Certificate of Inspection and Acceptance Report and require the developers to remedy any defects noted before the release of the remaining balance of the retention money.

Original Audit Finding Excerpt

"Ref. Audit Observations Audit Recommendations Agency Action Pian Action Plan Person/Dept. Responsible Target Implementation From Date To Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken d. Absence of Notice of Award in favor of the land developer, contrary to Item 2, Section Vill, Annex A of the NEDA JVA Guidelines. e. The original copy of the JVA was not submitted to the OP, NEDA, OGCC, GPPB and DOF, contrary to the provisions of the NEDA JVA Guidelines. Also, no annual report on the status of implementation of the JVA was submitted to DOF. CY 2019 AAR Observation No. 13 page 96 The title of the land for the New Armed Forces of _ the Philippines (AFP)/Philippine National Police (PNP) Housing Project in Barangays Calumpang and Tartaro-Sibul, San Miguel, Bulacan was not transferred to NHA, resulting in difficulty in giving individual title to the beneficiaries and the possibility of not being able to c"

Source Document