Metro Manila (CNN Philippines, July 14) — State auditors flagged the National Housing Authority (NHA) over delays in the completion of projects with a total cost of over ₱7.7 billion in 2022.
These projects include housing for victims of Typhoon Pablo and Typhoon Nina, and the construction of a sports stadium in Marawi City.
The Commission on Audit (COA) said similar issues were raised to the NHA in 2020 and 2021, according to its latest report uploaded on its website on July 12.
“However, the same conditions still exist, which indicate weak internal control over the proper monitoring and validation of the actual status of infrastructure projects as well as laxity/leniency in the enforcement of stipulations specified in the contracts,” state auditors noted.
The NHA was also questioned for not penalizing contractors for the delays as required in the procurement law.
Records showed delays of up to five years beyond the completion date stated in the contracts of 50 infrastructure projects under the agency’s calamity funds.
Under the procurement law, liquidated damages should be imposed upon contractors who fail to finish projects on time.
“Failure to do so shall subject the concerned NHA officials or employees involved to administrative sanctions as the NHA’s internal rules may provide,” the COA said.
The COA recommended that NHA closely monitor project deadlines and impose damages or pursue legal action against erring contractors.
In its comment, the NHA management said most of the delayed projects are under review for the imposition of liquidated damages, while others are up for contract termination.
