A PARTY-LIST group on Thursday asked the Commission on Audit (COA) to stop the National Housing Authority (NHA) from proceeding with a questioned compromise deal with a private contractor of the Smokey Mountain Development and Reclamation Project (SMRDP).
In a letter dated June 26, 2020, Bayan Muna told COA Chairman Michael Aguinaldo that the group is opposing and contesting NHA’s plan to pay P1.12 billion and transfer five hectares of government land in Vitas, Tondo, to settle court cases with private contractor R-II Builders Inc. (RBI).
Former Bayan Muna party-list Rep. Nery Colmenares, in a statement, said state auditors noted lingering questions about the compromise deal, a copy of which has not been submitted to COA.
“At a time of severe economic hardship and as government resorts to borrowings to feed millions of hungry and jobless Filipinos during the Covid-19 pandemic, it’s unconscionable for NHA to disburse limited public funds to pay questionable settlement fees to a private entity,” Colmenares said.
He said no less than the Office of the President has instructed NHA officials to first submit the questioned compromise deal to COA and secure its opinion. Afterward, COA‘s recommendations will be subject to approval by the President and Congress based on the Administrative Code of 1987, he added.
Colmenares said that in a May 12, 2020, Audit Observation Memorandum to NHA General Manager Marcelino Escalada Jr., COA noted discrepancies between a court-approved P1.12-billion NHA-RBI compromise agreement and a 2019 NHA briefing paper submitted to Sen. Juan Miguel Zubiri, where the agency allegedly admitted that it had overpaid RBI by P301.7 million.
To prevent dissipation of state assets, Colmenares said NHA should submit all required documents to state auditors who should make a final determination whether it is legally justifiable for the housing agency to enter into the proposed settlement with RBI.
Earlier, House Committee on Metro Manila Development Chairman Manuel Lopez reminded NHA, which is reportedly set to carry out the settlement with the RBI, that their P1.12-billion compromise agreement will be voided without congressional approval.
“As reported, the said agreement—already approved by the Court of Appeals—is for the purpose of concluding the settlement of claims by RBI against NHA, in the amount of P1.2 billion,” he said.
According to Lopez, the compromise agreement cannot be held as legal unless it has been approved by Congress. He said this is provided under Executive Order 292 and the Administrative Code of 1987.
“Without the approval of Congress, sought through the commission and the President, who shall provide recommendations, any such settlement or agreement can be considered void,” he said.