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Monday, March 26, 2007
Lamps supplier demands P104M payment
MANILA -- One of the two contractors who delivered lampposts for the Asean summit in Cebu asked the government Sunday to honor their contract and pay them at least P104 million.
The Department of Public Works and Highways (DPWH) and the Department of Budget and Management (DBM) have yet to pay P104 million out of the P150-million total contract price for the installation of 1,740 lampposts, said engineer Dante Valencia, executive vice president and general manager of Gampik Construction.
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In a briefing in Makati, Valencia said the two agencies should not include them in the cease-and-desist order issued by the Office of the Ombudsman last March 16.
That order directed the DBM to stop releasing payment to the contractors, until the controversy is resolved.
Valencia denied allegations that the lampposts they installed along the stretch of the cities of Cebu and Mandaue, leading to the Cebu International Convention Center, were overpriced.
He added that the Office of the Ombudsman should clarify who are those covered by the cease-and-desist order.
Graft investigators have recommended the preventive suspension of some officials who will now have to answer for the purchase. These officials include Mayors Thadeo Ouano of Mandaue City and Arturo Radaza of Lapu-Lapu City.
Also recommended for preventive suspension were DPWH 7 Regional Director Roberto Lala, two assistant regional directors and two city engineers.
Valencia blamed their problems on Crisologo Saavedra, project manager of the Pelican Bay Group, who joined the bidding for the supply and installation of traffic surveillance equipment and Software for Metro Cebu.
Saavedra, Valencia added, concocted the allegations that they delivered overpriced lampposts to divert the attention from Pelican's failure to fulfill its contract obligation to the government for the delivery and completion of the surveillance equipment.
"The issue has been injected with politics. (Cebu City Mayor) Tommy Osmeña is using Saavedra's claims that the lampposts project was overpriced to attack incumbent Mandaue City Mayor (Thadeo) Ouano," Valencia said.
He described his company and the other supplier, Fabmik Construction and Equipment Corp., as "victims" of the controversy.
Valencia explained that in their first and second delivery of the equipment, their contract price was only P83,000 for each lamppost.
They completed the delivery of 660 lampposts under the two contracts, he added.
"The lampposts that we delivered in Cebu were 300 pieces, which cost P83,000 each or a total of P25 million. The second contract was for Mandaue, with 360 lampposts equivalent to more or less P30 million," the Gampik official said.
So far, the government has paid only 85 percent of the P55 million contract price, he added.
"The P83,000 contract price for each lamppost includes the installation, labor and materials and other miscellaneous fees," Valencia said.
He branded the ombudsman's cease-and-desist order as unfair to their company, because they properly joined the pre-qualification, won the contract during the bidding and performed all their obligations.
"We are aboveboard. The allegations that there were irregularities involving our project were merely sweeping allegations coming from a man (Saavedra) who did not fulfill his obligation under another contract," he said.
Valencia referred to Saavedra's P79.9-million contract to supply traffic cameras and software, all due on Nov. 20, last year.
"The Pelican Bay Group of Saavedra was non-eligible for the award for lacking the required track record, but they requested for reconsideration. Why the motion for reconsideration was accepted by the DPWH is a big question mark," Valencia added.
In December last year, Saavedra filed graft charges against DPWH officials after his contract for the traffic surveillance cameras was rescinded. He said the agency had refused to pay him for P29 million worth of camera accessories he already delivered. (AH/Sunnex)
For more Philippine news, visit Sun.Star Pampanga. (March 26, 2007 issue)
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