Mivivienda Fund defaulted on housing bond guarantees and lost S$41 million.

Mivivienda Foundation suffered a loss of SGD 41,089,762 due to failure to honor overdue delivery guarantees bonds Housing relatives (BFH) programs own roof and given the non-compliance in the delivery of social interest houses that were to be built with said bonds, reported General Comptroller of the Republic.

Remember that at the beginning emergency In connection with Covid-19, Emergency Decree No. 036-2020 was published, which, in the second final additional provision, established the extension of the term for the execution of bonds, letters of guarantee and guarantee for the period of the State Emergency, which was amended by Decree on Emergency Situations No. 018-2021.

But after the publication of the Emergency Decree No. 018-2021, a rule came into effect extending the period for the execution of overdue supply guarantees bdhdelivered to recipients of the social housing program”own roof”.

Despite this, operational management Mivivienda Foundation did not issue instructions for the implementation of BFH guarantees under the Buy New Home (AVN) and Build Own Lot (CSP) models, which were due between February 25, 2020 and February 28, 2021.

Similarly, the financial department of the organization did not manage with the subjects of the financial and insurance system (FSIS) the execution of guarantees that expired during the specified period, within the statutory period (15 calendar days after the expiration date). Both guides had similar action with warranties that expired from March 1, 2021 to June 8, 2021.

This fact has not been reported. Main Department of Housing and Urban Development Programs and Projects (DGPUV) from Ministry of Housing, Building and Sanitation (MVCS)which resulted in the overdue guarantees not being executed within the statutory time limit, causing economic damage to the entity in the amount of SGD 41,089,762 due to violations of technical persons and promoters in the delivery of Houses of Public Interest (VIS).

In addition, the legal department Mivivienda Foundation issued an opinion stating that Emergency Decree No. 036-2020 (which establishes the extension of the maturity of bonds, bond letters and bond policies issued in the national territory) is in force, which is contrary to what is regulated in DU No. 018-2021, which contributed to the fact that the guarantees were not fulfilled.

According to the information provided Mivivienda Foundation, expired and unfulfilled guarantees that were presented to the said organization for BFH payments in the AVN and CSP modalities, as well as for the VIS Savings concept, totaling 67 guarantees for a total amount of 41,089,762 S/ due to non-compliance with deadlines surrender of VIS and non-return of bonds. The indicated amount includes the supply of BFH in favor of 785 Beneficiary Family Groups (GFB).

In this sense, the report control indicates that the implementation of the guarantees was not managed by the Operations Department Mivivienda Foundation in his capacity as Process Administrator, Guarantee Control, Compensation Request and Accountability to the BFH of the Techo Propio Program, which was to carry out the appropriate follow-up actions.

For its part, the Treasury Department did not lead activities related to the effective management of the Treasury and did not monitor compliance with regulatory requirements. Similarly, the Legal Department, in response to requests from the Financial Department and the General Department, issued opinions that were not accurate or relevant with respect to the validity of MD No. 018-2021, and furthermore, the Operations Department did not inform MVCS.

In connection with these facts, the Comptroller’s report determined the alleged civil and administrative liability of the organization in relation to ten officers, former officers, employees and former employees of the Mivivienda Foundation. For this reason, the Chairman of the Board of Directors of the Mivivenda Foundation was advised to take appropriate action to determine the respective responsibilities of those involved.