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Wednesday, September 22, 2004
Toyo paid P150M for recla work, slapped with ban
CEBU CITY -- After the Cebu City Government settled its debt with the Japanese contractor of the South Reclamation Project (SRP), Mayor Tomas Osmeņa told Toyo Construction officials Tuesday they can forget about doing business with the City.
City Hall earlier refused to pay Toyo Construction for overpricing and lack of receipts, but finally paid this month the last installment of the P150-million balance it owed the company.
As soon as the debt was settled, Osmeņa told Toyo officials the bad news.
Toyo officials went to City Hall Tuesday to thank Osmeņa for "paying them" the last billing for the P2.8-billion contract on the civil works of the SRP, which the firm completed in 2000.
"No, I said, thank you," Osmeņa said when sought for comment on the officials' visit. He did not elaborate.
While he has closed City Hall's doors to Toyo, Osmeņa is on his way to Japan today to sell the 240-hectare SRP as a retirement destination, among other business prospects.
Osmeņa had been unwilling to pay Toyo the P150-million balance, but relented apparently after the opposition warned that the City's refusal to pay will not sit well with the Japanese Government and investors.
Osmeņa had accused the contractor of overpricing the filling materials used in reclaiming the project during the Garcia administration.
Toyo maintained that the deliveries of the materials were in order.
In a separate interview, SRP manager Nigel Paul Villarete said he was not at the mayor's office when the Toyo officials came.
Villarete said he doesn't know what the mayor meant when he said City Hall will no longer do business with Toyo again.
However, he suspected that until now Osmeņa is annoyed because Toyo still refused to submit invoices and purchase orders on the filling materials to support their bills to the City.
After over a year of insisting on withholding the balance of payment to Toyo until it presents the receipts for the materials, Osmeņa agreed in 2002 to pay.
It was agreed in the series of meetings that the City will pay Toyo in three installments, P50 million in November 2002 and another P50 million each on Sept. 30, 2003 and September 2004.
Toyo had waived the P71.6 million it earlier billed the City in interest for delayed payments.
With City Hall's obligations to Toyo ironed out, Osmeņa is set to leave this morning to Japan with four other local businessmen to explore the retirement homes industry and the possibility of bringing it to Cebu.
"This is very much related to our plans to put up retirement homes catering to foreigners at the SRP. The trip is initiated by the National Government for us to do a sales swing to Japan," said Osmeņa yesterday, a week after he arrived from Europe.
Osmeņa's five-day official trip will include a visit to several organizations involved in retirement business.
He will be joined by Cebu Investments Promotions Center (CIPC) marketing director Joel Mari Yu and representatives from the construction business of the Arcenases and Kings, who are willing to set up facilities here.
The trip was initiated by the Philippine Retirement Authority, which will also be marketing other properties there.
Osmeņa said he initially begged off from joining the trip since he was not assured of a chance to present the SRP in the meetings that they will attend.
"But the National Government's travel budget was slashed so I'm suddenly the head of the delegation...It's really for the SRP that we're doing this," he said.
The mayor's travel expenses will be charged against the CIPC advertising budget while the other businessmen will shoulder their own airfare and accommodations in Japan.
Last Sept. 6, Osmeņa also left for Barcelona, Spain to attend the World Urban Forum, after which, he proceeded to Germany to visit some cities that are willing to tie up with the Cebu City Government. He came back last Wednesday.
Meanwhile, Villarete said one of Osmeņa's frustrations over the SRP is when the Garcia administration approved changes in the civil works such as lowering the elevation of Pond B from 3.2 meters to 2.7 meters.
This had caused "water to pond" on the side of the coastal road every time it rains.
"I don't why there were sudden changes in the middle of the execution. If you look closely, a certain stretch between the bridge and the Kawit Island on the right side going to Talisay seems to be sunk. The entire ground is 3.2 meters above sea level. Only that portion there has a lower elevation whenever it rains there's a pond," he told Sun.Star Tuesday.
Villarete, however, added he could not blame Toyo for the defect because the contractor merely implemented the changes. (GRA/LCR)
(September 22, 2004 issue)
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