Village wants contract scrapped-A A +A
Friday, September 6, 2013
BARANGAY Poblacion Pardo, Cebu City, wants the court to rescind the agreement it entered with a private contractor in 2010 after the latter allegedly failed to comply with the terms of contract and abandoned the government-funded projects that cost about P11-million.
Poblacion Pardo Barangay Capt. Fermin Dasmariñas filed the complaint for rescission of contract with damages against the controversial contractor, E.M. Arante Construction, before the Regional Trial Court.
Businessman Enrique M. Arante, who owns the construction firm, was named defendant.
In the complaint, Dasmarinas said her office entered into a contract of agreement with Arante Construction for the improvement of their sports complex, amounting to P2,076,932.22, in February 2010.
The project, referred to in the complaint as project cluster 2, was supposed to be finished on Aug. 11, 2010.
The village also signed another contract with the same contractor for the improvement of the health center, deck roofing, concrete base sidewalk with curb and gutter, sports complex, railings and a two-story building last March 22, 2010.
The project cluster 1, which was scheduled to be completed on Nov. 29, 2010, at a cost of P11,951,662.11.
The barangay released P10,326,640.16, which represents 70 percent of the total cost for the two project clusters, to Arante Construction.
But Dasmarinas said the contractor “did not perform his end of the deal” after it received the money.
State auditors, in their audit findings, issued a notice of dis-allowance and later a notice of suspension to Barangay Poblacion Pardo.
The audit findings of the Commission on Audit (COA) “spells the serious breach of contract” by the contract on both projects, said Dasmarinas in the complaint.
In the audit observation memorandum, state auditors recommended to the Barangay Poblacion Pardo to terminate the contract agreements with Arante Construction.
State auditors also asked the barangay to blacklist Arante Construction and file charges against the latter for failure to comply with the terms in the contracts and abandoning of the projects.
The barangay sent a demand letter asking Arante Construction to execute the demand terms in the contracts, but the latter did not heed the request.
Dasmariñas asked the court to order Arante Construction to return the public fund plus damages and withheld taxes to the barangay totalling to P19,234,673. 15 for project cluster 1 and P5, 494, 839.15 for project cluster 2.
Dasmarinas also asked the court to award the barangay P50,000 as attorney’s fees and P50,000 as litigation expenses.
Published in the Sun.Star Cebu newspaper on September 06, 2013.