Ex-city councilor warns city officials vs. paying ABE
Former City Councilor Atty. Vicente Gengos, Jr. threatened to file charges against the Sangguniang Panlungsod should they approve the endorsement of the City Legal Office (CLO) to pay the remaining P14.2 million to Ace Builders and Enterprise (ABE), contractor of the city's mothballed 125 million socialized housing project in Pavia, Iloilo.
In a late night radio interview, Gengos stressed the ABE has deceived the people as manifested in the result of their construction work at the project site. He said the contractor has violated the contract when it committed several anomalies.
The project was stopped following the disclosure of a subcontractor in August 2002 that substandard materials were used by ABE in the project.
Based on the evaluation report of the Commission on Audit (COA)Technical Audit Specialist, the actual accomplishment of the project is 61.70 percent. The total cost of deficiencies amounted to P4,262,297.60 while the total cost of sub-standard materials which includes roofing sheets, ceiling board and RSB is P1,262,790. The summary of defects, deficiencies and discrepancies was made on June 30, 2003.
The COA's evaluation report was prepared by Priscilla M. Muyuela, supervising Technical Audit Specialist and reviewed by Inocencio V. Cabahug, Jr., OIC regional cluster director. The evaluation report was based on the house construction details prepared by the City Engineer's Office.
Gengos lamented that it took the city government three years to act on the housing project mess. He was surprised with the recommendation of City Legal Office chief Atty. Edgar Gil to pay the remaining P14 million to the contractor though they have already abandoned the project long time ago.
The computation for the P14 million payables to the ABE was prepared by City Engineer Marito Amatorio and Engr. Gil Maternal. The computation of payment was based on COA's evaluation report.
In the computation of payment, the revised contract amount for the housing project reached to P137,787,499.56. The original project cost of the project is only P125,304,356.65.
Apart from the payment on the actual accomplishment of the project, the contractor has initiated additional works such as the construction of septic tank which is P1,093,918.50; lintel beam P575,167.00 and fascia board P414,120. The additional construction works cost P2,083,205. The total payable amount amounted to P87,098,092.
The city has already paid the contractor some P60,583,684.14. The P60,583,684.14 payment includes billing number 1 which is P22,970,319.52; detailed engineering survey architectural fee P5,824,016.98; billing number 2 - P19,804,825.49 and billing number 3 - P11,984,522.15.
This total amount of payment which is P60,583,684.14 is deducted from the cost of actual accomplishment. This lowered the amount to P26,514,408.55.
The city has also made 15 percent advance payment to the contractor in the amount of P17,697,050.95. There were also 20 percent less for recoupment of advance payment per billing. The 20 percent less for recoupment in billing number 1 is P4,594,063; 2nd billing P3,960,965.10 and billing number 3 P2,396,904.43. The amount totaled to P10,951,933.43.
The remaining balance for advance payment is P6,745,117.52. This lowered the payment to P19,769,291.03. Of of the P19,769,291.03 remaining amount due for the contractor, the P5,525,087.60 cost of deficiencies and sub-standard materials is deducted. The total amount payable to the ABE is P14,244,203.43. This is how they came up with their computation.
Gengos said the city officials should protect the interest of the people and not the contractor by paying them the P14 million. The former city councilor said he could not understand why the city will pay such amount to the contractor when there are violations committed which is tantamount to the termination of the contract between the city and the contractor.
While still part of the city council, Gengos has sponsored five resolutions calling for Mayor Jerry Treñas to terminate or rescind the contract because of the violations committed by the contractor. However, though unanimously approved by the council, it fell on the deaf ears of the chief executive.
The first resolution sponsored by Gengos and approved by the city council is dated October 2, 2002. He sponsored another resolution calling anew the chief executive to rescind or terminate the contract on April 9, 2003. Yet, nothing was heard from the chief executive.
Gengos again sponsored another resolution calling the mayor for the third time. Still, nothing was heard even up to the passage of a fifth resolution calling for the mayor to rescind or terminate the contract.
The former councilor said it seems that the city government is afraid of the contractor. "Daw may alas bala ang contractor sa aton mga city officials (perhaps the contractor has something against the city officials)," he said.