Housing agency flagged over delayed Bulacan project

The Commission on Audit (COA) has flagged the state firm Social Housing Finance Corp. (SHFC) in connection with a P551-million unfinished housing project in San Jose del Monte, Bulacan.

The project was intended for informal settlers living along waterways and danger zones.

In an annual audit report issued recently, the COA said that as of 2019, the Gumamela Neighborhood Housing Cooperative (GNHC) project in Barangay Kaypian has yet to be completed despite a one-year extension period given to the contractor.

“The GNHC project amounting to P551.02 million and implemented under the High Density Housing Program was not completed within the scheduled date of completion despite the approved extension period until June 30, 2018,” the COA report read.

State auditors said the project, which started in 2016, was supposed to benefit the 1,406 families living along the San Juan, Tullahan and Tonsuya rivers; Lagarian Creek; National Power Corp. transmission lines and dumpsites.

The audit body said the continuous delay in the completion of the project deprived the informal settlers of a decent and affordable housing.

It said the delay defeated the objectives of the HDHP.

“The delayed completion of the project also caused the non-recovery of funds invested in the housing project,” the COA said.

Citing the original agreement signed between the SHFC and the contractor, the COA said the project should have been completed within a year or on Sept. 15, 2017.

The contractor requested an extension until June 30, 2018, which the SHFC approved through a board resolution issued in 2017.

An ocular inspection conducted by an audit team on Sept. 18, 2019 showed the project was not yet completed and there was no ongoing construction activities.

The report did not identify the project contractor, whom the COA said had been paid P63.270 million in mobilization fee as early as September 2016.

Despite the delay in project completion, an additional partial payment of P23.11 million was released to the contractor on Sept. 5, 2019.

The COA ordered the SHFC to demand payment of liquidated damages against the contractor for failing to deliver the project on time.

It said the SHFC should order the contractor to submit an updated accomplishment report to be validated by the engineering department of the housing agency.