Philenews

Audit Office: €4 Million Loss at Housing Finance Organisation – Customers Deprived of Cards and ATMs Due to Software Failure

Published January 20, 2026, 07:19
Audit Office: €4 Million Loss at Housing Finance Organisation – Customers Deprived of Cards and ATMs Due to Software Failure

The Audit Office has identified significant shortcomings at the Housing Finance Organisation (HFO) regarding the implementation of a new Information System. The failure to implement the project, which should have been completed in 2021, has cost the HFO at least €3.55 million for the period 2021-2025, excluding administrative costs and other negative consequences. Furthermore, the failure to terminate the contract with the company undertaking the project deprived the HFO of the opportunity to seize the guarantee value of €452,350. The delay in implementing the project resulted in the HFO being unable to provide basic services to its customers, such as credit cards, online banking, and ATMs. The Audit Office also points out problems with the subcontractor's performance and gaps in the HFO's administrative operation due to the incomplete composition of the Board of Directors and the non-appointment of a General Manager. In addition, an irregular modification of the contract was found, which essentially changed its object. Instead of implementing a new Information System, it was limited to the utilization of existing equipment. The Audit Office calls on the HFO to take corrective measures and ensure transparency and legality in its procedures.