Saturday, June 28, 2008 Funds idled for stalled projects By Oscar C. Pineda Sun.Star Staff Reporter
MANDAUE City Administrator Briccio Boholst said the City failed to use P122 million in funds, according to the Commission on Audit (COA) report, as some projects are stalled by technicalities.
“There are some regulatory requirements that we have to follow,” said Boholst.
Some projects, he said, are undergoing court litigations while others failed to comply with the law or memorandum circulars, which is why allocated funds remained idle, said Boholst.
The City has not given other projects a “go signal” while others were stopped by their contractors, said Boholst.
“This is consistent with Mayor Jonas Cortes’ statement, which is to rectify discrepancies of the past administration’s projects,” said Boholst, who maintained that they just inherited these from former mayor Thadeo Ouano’s administration.
But he assured that the present administration will work it out with the opposition-dominated City Council to use these idled funds.
Advance
Aside from the unused P122,162,381.67 in the City’s coffers, COA also noted P56.53 million in advance payment to a contractor, resulting to the government spending for P1.53 million in interest, which is unnecessary.
Other items noted by COA were the undistributed garbage bins: 3,253 units or 38.2 percent of 8,502 trash bins worth P110 million acquired through loan from the Development Bank of the Philippines (DBP).
According to COA, the City is still paying 9.5 percent per annum for this purchase.
Boholst said Mayor Cortes already knew about these unused funds two months after he assumed his post. But he said some lots for road projects are still undergoing civil case on eminent domain. Other road projects are sitting on privately-owned lots.
This is contrary to former mayor Ouano’s earlier pronouncements that the road-right-of-way problem had been addressed before he left his post.
There was a court hearing, and it was only early this year when RTC Judge Ulric Cañete ordered the City to pay lot owners Alex Uy and Mario Suson a total of P29 million for the expropriation of their private lots. This is to give way for the opening of G. Ouano Ext., from S.B. Cabahug St. to M.C. Briones highway.
Boholst said Cortes is correcting the previous administration’s project discrepancies.
Contested
Another example cited is the Jovita O. Martinez St., where construction was temporarily suspended because it is on a privately-owned lot, said City Engineer Antonio Sanchez.
Councilor Diosdado Suicoi said COA does not allow this and the project is illegal.
Gerardo (of G. Ouano St.) is the grandfather of mayor Ouano, and the father of former mayor Alfredo Ouano, while Jovita Martinez is Alfredo’s sister.
Boholst continued that, for two months now, the City Council is yet to ratify eight contracts.
The council already authorized the mayor to sign some contracts, but it didn’t ratify some, causing another delay, said Boholst.
Boholst did not specify what these contracts are, but he said the mayor is looking forward to a harmonious relationship with the council. (OCP)
