Friday, October 31, 2008 Council urges mayor to file case vs contractor
THE City Council passed a resolution Wednesday calling for Mayor Jerry Treñas to initiate legal action against Ace Builders Enterprises (ACE) for abandoning the P130 million socialized housing project in Pavia.
Councilor Eldrid Antiquera sponsored the resolution after the past city council passed several resolutions rescinding the contract in 2001-2004 between the City Government and ACE headed by Alexander Trinidad.
A letter dated October 17, 2008 was received by the city mayor from Ambrosio, Ambrosio and Ambrosio Associates as a final demand notice relative to the claims of spouses Alexander and Cecilia Trinidad of ACE Builders & Ent. in the amount of P26,544,408.56 representing 61.70 percent accomplishment of the Iloilo Housing Project as evaluated and approved by the City Engineers as well as the Commission of Audit (COA).
Antiquera said the contractor has no right to demand payment for a project that has been abandoned. If anyone is to be charged, it should be the contractor for breach of contract because it abandoned the unfinished housing project, the city councilor said.
In 2002, the contractor issued a billing of P14 million covering the fourth billing period but decided not to continue the project after the city government refused to pay the bill due to allegations of substandard materials and supplies used.
The city government has already released P80.2 million and P25 million in interests for the housing project, which is primarily intended for city government employees and other government workers. (Lydia Pendon)
