Silay City Mayor, other officials to face congressional probe on P1.4 billion loan

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Silay City Mayor Joedith Gallego and other city officials will be ground today in a congressional inquiry by the House Committee on Public Accounts chaired by Abang Lingkod Partylist Rep. Joseph Stephen "Caraps" Paduano on alleged irregularities in the procurement process of infrastructure and other projects amounting to 1.4B pesos by the local government of Silay City.

The hearing is set at 9:00 AM today at Belmonte Hall, South Wing Annex House of Representatives, Quezon City. Invited as resource speakers are Gallego, Vice Mayor Thomas Maynard J. Ledesma, Councilors Ryan Milos Romeo M. Gamboa, Andrew John D. Penuela, Jose J. Lopez Jr., Ramon B. Celebre, Darryl F. Hinolan, Lyndon Q. Bernardo, Michael S. Maravilla, Councilor Maximo Y. Javelona III, Demetria D. Apla-on, Councilor Antonio Y. Duca Jr.; ABC President Eugene E. Celis Jr., SK President Jhon Mhil Acerada.

Also invited as resource speakers and witnesses are Current officials of the Bids and Awards Committee, Engr. Elmer Kent Torres, City Budget Officer, City Accountant, City Treasurer, City Building Official, Former Mayor Mark Golez, Vendor Association representatives, and Silver Dragon Construction Lumber and Glass Supply.

The committee of Paduano who is also the caretaker of the Third District also invited Commission on Audit (COA) Chairperson Gamaliel A. Cordoba, Department of the Interior and Local Government Secretary Juanito Victor "Jonvic" Remulla, Jr., Government Procurement Policy Board Executive Director Rowena Candice M. Ruiz, Land Bank of the Philippines President Ma. Lynette V. Ortiz, Development Bank of the Philippines President Michael O. de Jesus, Land Bank of the President Ma. Lynette V. Ortiz, Development Bank of the Philippines President Michael O. de Jesus, National Historical Commission of the Philippines Chairperson Regalado Trota Jose, Jr.

In his privilege speech on September 9 at the House of Representatives, Paduano said it has come to his attention that the Silay City government, led by Mayor Joedith Gallego, has approved local measures that are allegedly laden with discrepancies, irregularities, and evident partiality.

"These acts are particularly concerning, as they involved misuse of public funds that, if not exposed, would cause undue burden and irreparable injury to the constituents of Silay City," the solon added. Paduano reported that the Silay City government, through the initiative of Mayor Gallego, has entered into a loan agreement with the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) to fund his administration’s mega-infrastructure project in the aggregate amount of P1.4 billion.

These would finance the repair and rehabilitation of Silay City Public Market in the amount of P300 million; P300 million each for the construction of a City College and City Coliseum, and P500 million for the construction of a new city hall or city government center.

As the city government started the mega-infrastructure project through the enactment of Appropriation Ordinance No. 1 on March 15, 2023, which includes the P300 million repair, rehabilitation, and renovation of the city public market, Paduano said he received complaints from vendors, asserting that the local measure did not conform with pertinent rules and settled ordinances of the city.

The Silay City Market Code of 2020, an ordinance previously issued by the Sangguniang Panlungsod, explicitly requires that a strategic development plan, extensive research, situational analysis, and recommendation from the Market Authority must first be secured before entering into a loan for the rehabilitation of the public market, he added.

In response, Mayor Gallego pointed out that the only requirement for a local chief executive to enter into a loan contract is prior authorization from the Sangguniang Panlungsod.

This is a clear indication of abuse of authority by blatantly disregarding existing local ordinances. Just because you are allowed to do so under the law, does not mean that you should ignore the interests of the people who will be adversely affected by the act, the solon said.

Even worse, during the implementation of the project, the city government constructed temporary market stalls within the city’s heritage zones without approval from the city’s heritage district administration office.

These zones are designated to preserve the cultural and historical integrity of Silay, Paduano further alleged. He also claimed that the construction of a P500 million City Hall was anomalous, noting questionable decisions from Silay City officials.

Paduano also alleged that the submitted proposal by a bidder for the construction of the new City Hall did not conform with the terms of reference set by the city government.

Interestingly, instead of rejecting the proposal outright, the members of the Bids and Awards Committee granted the bidder multiple opportunities to correct its design, the solon said.

This apparent exercise of discretion contravenes the provisions of the Guidelines for the Procurement and Implementation of Contracts for Design and Build Infrastructure Projects of Republic Act No. 9184 or the Government Procurement Reform Act, Paduano said.

Despite the glaring irregularities in the evaluation process, the Silay City Council gave its approval of allowing the City Mayor to enter into and sign the contract with the bidder for P500 million, with the presiding officer, Vice Mayor Thomas Ledesma, as the tiebreaker vote, with only six councilors in favor of it.

This act runs contrary to provisions of Article 107 (g) of the Implementing Rules and Regulations (IRR) of the Local Government Code, which provides that “any ordinance or resolution appropriating, authorizing, or directing the payment of money or creating liability requires the affirmative vote of a majority of all the members of the Sanggunian for its passage, he added. (TDE)

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