Saturday, April 14, 2007 Veco cuts off lamps power
THE Office of the Ombudsman-Visayas already gave the Cebu City Government clearance to accept the streetlamps from the contractors, but it did not stop Veco from cutting off power supply to the lamps yesterday afternoon.
City Administrator Francisco Fernandez said City Hall cannot do anything about the power supply disconnection while the lamps are not turned over yet to the City.
He said, though, that policemen in patrol cars were asked to check on the streetlamps installed in Cebu City to make sure they are not vandalized.
Veco information officer Ethel Natera said they cut off power to the “apex-type” lamps in the cities of Cebu and Mandaue yesterday afternoon.
But as of 10 last night, some lamps along Salinas Drive in Cebu City were still lighted, although those on Juan Ave. were already dark.
City Planning Officer Nigel Paul Villarete earlier computed that a 12-hour use of each lamp a day will cost the City P513 in electricity consumption a month.
The power bill for the 360 apex lamps on Salinas Drive to Juan Luna Ave. could reach P184,680 a month, based on Villarete’s figures.
Acting Deputy Ombudsman-Visayas Virgina Santiago met with officials from City Hall and the Department of Public Works and Highways (DPWH) yesterday to determine how to keep the lamps lit without prejudice to the ongoing investigation over the allegedly overpriced procurement.
The anti-graft office put under preventive suspension for six months 19 public officials of Mandaue and Lapu-Lapu cities and DPWH 7 for the “highly overpriced” purchase of the P365.87 million worth of lamps and streetlights.
Santiago, in an interview after the meeting, said the parties are considering a memorandum of agreement, wherein Cebu City is authorized to enter into a contract with Veco to keep the lamps lit without being considered as having “received” them.
“I understand the concern. If these lampposts aren’t lit, thieves will cut them down one by one to be used for scrap iron,” Santiago said.
No conflict
“I consulted with the other anti-graft lawyers and they said there seems to be no conflict because what we are investigating is the method of the procurement, not the validity of paying the power bills,” she also said.
However, Santiago pointed out that there is no agreement just yet.
“We have to run this by the Commission on Audit because if they question the disbursement of the funds to pay for the power bills, the officials who agreed to the release may find themselves in hot water,” she said.
Even if the lamps between SM City at the North Reclamation Area to Salinas Drive, leading to the Marco Polo Hotel, have already been paid for as part of the P100-million phase one release, they are still not considered government property unless a turnover is made, Santiago said.
Right now, the electric consumption of the lamps in Cebu City is being shouldered by the two contractors—the Fabmik Construction and Equipment Corp. and the Gampik Construction and Development Corp.
No funds
The total demandable amount has not reached the level of Lapu-Lapu City, where the bill is already about P3 million.
But Santiago said this is only because the contractors were able to make a P700,000 deposit to Veco.
The power company, though, sent the billing the DPWH, which awarded the lamps contracts to Fabmik and Gampik.
“DPWH is the holder of the account and because they failed to settle the bills for four months, we have no option but to stop the service,” Natera said, adding that payment for other lamps is up to date.
There were talks that the lamps are covered by a one-year warranty and that during this period, the contractors are to foot the electricity bills.
However, no such provision can be found in the contract between the DPWH and the suppliers, said an anti-graft official.
“We cannot pay it (bill) because we do not have funds for it,” newly designated DPWH Regional Director Jerome dela Rosa said.
But he said he ask the contractors to turn over the lamps to the local government units already.
Fernandez met with Santiago, DPWH and Veco officials yesterday to discuss the possible turnover of the lamps to Cebu City.
Transfer
“They (ombudsman) have no objection that we take over ownership without prejudice to the case. Everyone understands and agrees that whether or not the lamps are overpriced, it will be a loss if they are stolen. So tonight we’ll just ask the police to patrol the areas where they are installed to safeguard them against vandals,” Fernan-dez told Sun.Star Cebu.
The City, however, was advised that it cannot settle the electricity bills as it might encounter problems with the Commission on Audit, Fernandez said.
While waiting for the contractors to turn over the lamps, the city administrator said he will prepare the papers needed for the transfer of ownership to hasten the process.
Mayor Tomas Osmeña had said that he wants to keep the lamps so the roads leading to the major hotels in the city will continue to be well-lit, which he said is good for business. (KNR/LCR/With AIV)
