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Tuesday, October 07, 2003
City still owes P20M to bldg. contractor

THE City Government of Davao still owes some P20 million to the contractor who built the controversial P150 million building of Davao's City Council.

Majority leader Victorio S. Advincula Sr. said Monday the Regional Trial Court (RTC) has recently ordered the City Government to remit the amount to contractor Bayani T. Escora of BTE Builders so Escora in turn can pay part of his loan obligation to the Philippine National Bank (PNB).

Advincula said the PNB has sued Escora to compel him to pay the remaining balance of the loan he made from the bank to finance the construction.

In turn, Escora sued the city government so he could pay the P20-million to PNB.

Advincula said once the city government pays the amount, all its obligations to Escora will be extinguished, including the alleged interests the contractor had earlier demanded from the city government.

The city government accepted the building in 1995. The acceptance was signed by then Vice Mayor Benjamin C. de Guzman who was acting mayor at the time and assistant City Engineer Joaquin Cui Jr. after City Engineer Meinrado Metran had refused to sign it, claiming that on inspection he found more than 100 defects on the structure.

Councilor Advincula said the City Government still has to act on the court order to pay Escora. AAG

(October 7, 2003 issue)

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