Sunday, April 24, 2005
Ombud nixes complaint v. Valencia officials
By Neil C. Rio
* Of the total cost, Legacy paid only P700,000, returned P350,000 worth of pipes, and maintained a balance of more than P1.76 million.
VALENCIA, Negros Oriental -- The Office of the Ombudsman for the Visayas dismissed for lack of merit the administrative case filed by New Bian Yek Commercial Incorporated (NBYCI) against Mayor Rodolfo Gonzales Jr., the municipal treasurer, and the Provincial Attorney.
The complaint was in connection with the over P1.76 million unpaid debt of Legacy Construction, a firm contracted by the municipal government to improve the municipal waterworks system in August 2000 during the incumbency of then Mayor Humberto Sy.
Following the contract signing, Jaime Lu, an agent of Legacy Construction, procured water pipes and other materials from NBYCI amounting to more than P2.8 million.
But of the total cost, Legacy paid only P700,000, returned P350,000 worth of pipes, and maintained a balance of more than P1.76 million.
Danford Sy, representing NBYCI, said the firm made several demands but these were unheeded.
On April 15, 2002, NBYCI informed the municipal government of Legacy's balance and requested that whatever future payments it would release should first be made to the construction firm's balance with NBYCI.
But, on consultation, Provincial Attorney Erwin Vergara opined that the claim of Legacy was superior over that of NBYCI and recommended that the municipality pay Legacy its due.
On the other hand, Mayor Gonzales, co-respondent Rolando Obaniana, municipal treasurer, denied releasing the money to Legacy in bad faith.
They explained the release of the retention money was part of the obligation of the municipal government because of its contract with Legacy.
Moreover, they clarified that the final payment to Legacy was paid only after the Regional Trial Court recalled and quashed the writ of attachment NBYCI filed requesting the municipality to withhold the payment of Legacy.
Furthermore, the respondents said they were not aware that NBYC subsequently filed a motion for reconsideration against the quashing of the writ.
In her six-page decision, Sarah Jo A. Vergara, Ombusdman graft investigator, said that the respondents could not be held liable for any graft or corrupt practice.
Foremost, Vergara said, the respondents had a contract with Legacy to pay for the project costs and secondly, the Gonzales and Obaniana had the sense to seek legal opinion.
"This recourse exhibits prudence in their administration. Later acting in accordance with the opinion extended to them by (Vergara) further shows their willingness to do what is fitting and thereby promote the best interests of their municipality," the graft investigator said.
(April 21, 2005 issue)
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