Shelter anomaly raps urged

September 12, 2018

THE contractor and personnel of the National Housing Authority (NHA) involved in the housing project for the victims of Yolanda in Eastern Samar should be charged in court.

This was the recommendation of the Commission on Audit (CoA) in its 2017 annual report for the NHA.

According to CoA, the NHA must file criminal and administrative charges against the unnamed contractor involved in alleged irregularities in the development of   housing projects worth P654.59 million in the towns of Balangiga, Hernani and Quinapondan.

COA said this contractor has been awarded contracts that are beyond its capacity to implement.

And this is a clear violation of procurement laws and other regulations as a result of the awarding of the contracts to the unqualified infrastructure contractor, the state auditors said.

Auditors found the adjacent projects for the three sites were split into eight smaller contracts to “accommodate” the developer—whose Philippine Contractors Accreditation Board license only authorized it to secure construction deals for up to P100 million.

They noted that  the contract prices would have been the following: P133.29 million for Balangiga, P286.6 million for Hernani, and P234.7 million for Quinapondan.

CoA stressed that the contracting firm exceeded the P100 million cap of construction projects it may undertake.                 

Likewise, the audit agency said this violated Section 54.1 of the implementing rules and regulations of the Government Procurement Reform Act.

Meanwhile, the NHA argued that since there was only one contractor that submitted bids for the projects, they did not commit the prohibited act of splitting.

In the same audit report, state auditor berated NHA as they discovered  10 Yolanda Permanent Housing Program projects amounting to P852.73 million.