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Saturday, November 10, 2007
P1.5B Asean summit spending ‘violated law’
By Elias O. Baquero
CEBU CITY -- State auditors have ordered the Department of Public Works and Highways (DPWH) to “show cause” for implementing 136 projects worth P1.525 billion for the 12th Asean Summit in violation of the procurement law.
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The Commission on Audit (COA) warned that the payments made for these projects may not be allowed.
In a report posted at its website, COA noted that the 136 projects were implemented without public bidding and 63 of these, costing P766.75 million, were implemented without appropriate funding and perfected contracts.
COA also found that the approved budget for contracts for the supply and installation of 660 sets of street lamps in the cities of Cebu and Mandaue were bloated, hence, the contracts totaling P54.94 million were found excessive by P35.56 million.
This COA finding was also uncovered by the Office of the Ombudsman last March 2007 when it found out that the two firms in China that supplied the decorative lampposts bloated the prices.
The companies were identified as Zhongshan Guzhen Yongan Street Lamp Factory in Guandong, which supplied Gampik Construction and Development Corp., and Valmont Industries Ltd., which supplied Fabmik Construction and Equipment Co.
Former Mandaue City mayor Thadeo Ouano, Lapu-Lapu City Mayor Radaza, other city officials and those from the DPWH 7 were preventively suspended for the overpriced purchase.
Businessman Crisologo Saavedra had filed the graft complaints against them.
State auditors warned those involved in the procurement of the lampposts could be held “personally liable” for the release of the payment balance and failure of the contractors to refund the excess payment of P24.57 million.
The COA report also said that 16 regular maintenance projects costing P168.320 million that were implemented outside the summit venues were included in the list of Asean-related projects.
Also, rehabilitation/repair works worth P30.333 million were implemented on private properties.
The state auditors also said the Lapu-Lapu City engineering office should account for materials used in a private beach resort or they could be help liable for any losses of government supplies.
COA also said that the DWPH 7 officials should explain why the contracts were implemented through negotiated procurement when the conditions did not fall under those provided in Republic Act 9184 or the Government Procurement Reform Act.
The schedule and venue of the 12th Asean summit were already known during the 11th summit, so there was no condition that required immediate action “to prevent the loss of life or property,” the state auditors said.
The summit in Cebu was originally set in December last year but was moved to January after a typhoon hit the country.
DPWH 7 officials must also show cause why contractors were allowed to start work without any funding and contract.
Payments made to these contractors may be disallowed.
COA also required DPWH 7 officials to explain why regular maintenance projects were not procured through public bidding despite the lack of urgency in the implementation.
Last March, Tanodbayan Merceditas Gutierrez ordered for the six-month preventive suspension of Ouano, Radaza and 17 other public officials for the lamppost controversy.
Among the DPWH 7 officials suspended were then director Robert Lala and assistant regional director Marlina Alviso, who also headed the bids and awards committee.
When called to comment, DPWH 7 Director Jerome dela Rosa, who replaced Lala in April, said that he found some irregularities in the implementation of the projects related to the Asean Summit in January 2007.
But when he continued his investigation, he was suddenly assigned to Davao City in an order dated Oct. 30. He assumed his new assignment last Nov. 6.
One of the observations made by dela Rosa is that the contractors for asphalt-overlay did not follow specifications.
Dela Rosa said that contractors used cold-mix asphalt instead of hot mix, possibly to maximize profit.
He believes those who are involved of the projects were behind his transfer.
Alviso, dela Rosa said, is already back in her post as DPWH 7 assistant director, and became the officer-in-charge after his transfer to Davao.
In a separate interview, Lala said he is waiting for the order for reassignment as DPWH 7 director.
“I will comment on that COA findings and recommendations when I get back to Cebu,” Lala said. (Sun.Star Cebu)For more Philippine news, visit Sun.Star Zamboanga. (November 10, 2007 issue)
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