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Sunday, April 30, 2006
Where’s P22M payment?

It’s been two months since both Cebu City Hall and Young Builders settled what the City owes the contractor in the aborted reconstruction of Unit 2 Building of Carbon public market.

But Young Builders has yet to receive the P22-million compromise from the City Government because the City Accounting Office has suspended the vouchers supporting the payment, said City Administrator Francisco “Bimbo” Fernandez.

Sun.Star Cebu learned from City Accountant Edna Jaca that they had returned the vouchers to Young Builders because these lacked supporting documents, including the original copy of the contract, and the description and justification of the payment had to be revised.

Partial payment

Jaca said Young Builders indicated that the P22 million was for the first partial payment when it was supposed to be for the full payment of the contract as a compromise.

As of last Friday, the City Accounting Office has yet to get back the vouchers from the contractor.

Young Builders has been awarded by the previous administration the contract to reconstruct the burnt building, but technical problems like unauthorized variation orders and lack of building permit prompted the Osmeña administration to cancel the contract.

Mayor Tomas Osmeña earlier said the City cannot pay for the P80-million works for the foundation and variation orders that it did not approve, or he will face a disallowance by the Commission on Audit and be ordered to refund the payment.

Instead, City Hall negotiated with Young Builders and had the contract cancelled.

Carbon ramp

The City plans to build a ramp that will go around and connect the Unit 1, 2 and 3 buildings starting on Escaño St., turn left over Quezon Blvd. then over F. Gonzales St. as exit point for all vehicles.

This way, all vendors and legitimate stallholders of Unit 2 will be allowed to sell under the ramp.

When the City bid out the ramp two years ago, WT Construction won and was awarded the P135-million contract.

But WT still has to begin civil works at the site because Young Builders had built a perimeter fence and refused to allow entry in the area until the City pays.

Fernandez said he will be meeting with Young Builders and WT Construction separately next week.

He will discuss with Young executives as to why they have not yet returned the vouchers. As with WT, Fernandez will take up the delay on the construction of the proposed ramp.

Since the fire gutted the building in January 1998, vendors of Unit 2 Carbon market have been selling in temporary stalls on the streets.

The Ermita Barangay Council has passed a fourth resolution inquiring from the City Government the status of the project.

Members of the council and their constituents are mostly vendors, who rely on their businesses at the Carbon market. (GAC)

For Bisaya stories from Cebu. Click here.

(April 30, 2006 issue)
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