COA hits NHA for continued use of DAP funds

MANILA, Philippines - The National Housing Authority (NHA) used P665.118 million in Disbursement Acceleration Program (DAP) funds last year despite a Supreme Court (SC) ruling that declared it unconstitutional.

In a 2014 report released yesterday, the Commission on Audit (COA) said the use of DAP funds after the SC ruling was illegal and the amount should be returned to the Bureau of Treasury (BTr).

The COA report said the NHA tried to defend its acts when it cited a letter from the Department of Budget and Management dated June 10. “Since there is no injunction issued… in the release of funds under the DAP… those that have been obligated, continued implementation of the same is legally justified,” the letter stated.

State auditors rejected such argument, saying the NHA should have discontinued the utilization of DAP funds, remitted all unutilized DAP funds and requested for a supplemental budget from the DBM to fund the continuance of DAP projects.

Records show the NHA received several Special Allotment Release Orders and Notices of Cash Allocation from DAP funds amounting to P11.050 billion and received cash amounting to P7.715 billion.

Of the amount, P764.973 million had not yet been utilized when the SC issued its ruling on the DAP on July 1, 2014.

The NHA used P665.118 million for projects that include housing programs for informal settlers in Metro Manila, Bureau of Fire Protection and Bureau of Jail Management and Penology personnel and the North Triangle Relocation Project and the Iloilo Resettlement Project after the promulgation of the SC decision.

State auditors said a total of P764.973 million should be returned to the BTr.