COA urged to junk NHA's P1.12-B deal with firm for Smokey Mountain reclamation project
The Commission on Audit (COA) should stop the National Housing Authority (NHA) from paying P1.12 billion to a private contractor in connection with the Smokey Mountain Development and Reclamation Project (SMRDP), a lawyer and former lawmaker said Thursday.
Former Bayan Muna representative Neri Colmenares was referring to the compromise agreement between NHA and R-II Builders (RBI), Inc., the validity of which was questioned by COA last month due to discrepancies between a court-approved P1.12-billion NHA-RBI compromise deal and a 2019 NHA briefing paper submitted to the Senate where NHA apparently admitted that it already overpaid RBI by P301.7 million.
“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 in his letter to COA dated June 26.
Colemenares said that even the Office of the Government Corporate Counsel have cautioned against the deal due to questions on the computation of NHA’s supposed liabilities, legal interests, and the valuation of government land that is part of the deal.
“With all these questions, why the rush to pay?” Colmenares added.
The NHA has denied making over-payments to R-II Builders, Inc. in connection with the Smokey Mountain housing project.
“There were no payments nor overpayments made to R-II Builders, Inc.," NHA General Manager Marcelino Escalada has said.
In a statement on the NHA website, General Manager Marcelino P. Escalada, Jr. said he had also written the COA as regards the substantial settlement.
Escalada said a letter from the Office of the President advised the NHA to get the recommendation of COA on the settlement of RBI’s claims, which will be subject to the approval of the President and the Congress, citing the provisions of Executive Order 92 or the Administrative Code of 1987.
“I have written to COA regarding their recommendation on the claim," Escalada said.
The P1.12 billion deal—approved by the Court of Appeals in May 30, 2019—allows the NHA to pay RBI the initial amount of P500 million in cash within six months from execution of the Compromise Agreement, provided that the parties may further agree to the payment of the same thru dacion en pago (special mode of payment agreed by parties) of properties located at Vitas, Tondo, Manila.
Likewise, the same deal states that the remaining balance of P622.4 million will be paid by NHA to RBI in cash and by way of dacion en pago of the following real properties and the respective fair market values to be determined by a duly accredited appraiser chosen by NHA in accordance with existing laws.
Earlier, COA called on the NHA to submit a reply to the queries and documents requested in Audit Query Memorandum No. 2019-008 dated October 7, 2019 for a thorough evaluation of the validity of the transactions.
“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,” Colmenares said.
“Congress, which holds the power of the purse, should have the final say in a deal of this magnitude,” Colmenares added. — BM/NB, GMA News