The Capitol has found a source of funds to pay contractors demanding a total of P607 million for infrastructure projects undertaken during the previous administration.
A portion of the payment can be taken from the Cebu provincial government’s unused 2013 development fund worth P316.5 million according to Cebu Provincial Board (PB) member Grecilda “Gigi” Sanchez-Zaballero.
She said the amount initially allocated for the Capitol’s development projects for 2013 is a possible source of funds if Cebu Gov. Hilario Davide III chooses to pay up the contractors.
“Yes, that money is available for use but ultimately, it’s up to him (Davide) because that is an executive decision,” said Zaballero who is also chairperson of the PB Budget and Appropriations Committee.
“But in my personal opinion, I don’t see a reason not to pay the contractors if they convince us that their projects are completed, at par with standards, has COA (Commission on Audit) approval and already used by the people,” added Zaballero.
The Capitol owes more than P607 million worth of payables to 31 construction firms through contracts of infrastructure projects entered into during the administration of former Gov. Gwendolyn Garcia. The contracts purportedly did not have PB ratification, as required by law.
Of the total amount, P250 million worth of contracts are due and demandable since it has already been completed with some finished as early as 2006, said Zaballero.
However, not a single centavo has been paid to the firms since Cebu Gov. Hilario Davide III stood firm on his decision to withhold the payments until the contracts receive approval from the PB.
Realign
The PB’s Budget and Appropriations Committee headed by Zaballero will meet with the Capitol’s key finance officials and the acting provincial engineer today to discuss plans on how resolve Capitol’s payables.
One of the proposals Zaballero will put on the table would be to use the unused 2013 development fund to settle payables instead of using these for 2014 development projects.
The remaining balance of the 2013 development fund worth P316.5 million was earlier approved by the Provincial Development Council (PDC) to be realigned to various projects of the Davide administration for 2014.
The PDC’s decision, Zaballero said, is not final as it needs PB approval.
“Definitely, we will discuss about the availability of the remaining development fund in our meeting today,” she said.
The fund, also known as the annual Investment Plan (AIP) is 25 percent of the Capitol’s Internal Revenue Allotment (IRA) for the year.
In the recently approved annual budget of the Capitol for 2014, more than P400 million is allocated for its development projects under the AIP.
More patience
Zaballero also asked the contractors to give the Capitol more time in resolving their dilemma on the payables.
She said the present administration has only been in position for six months and added that they need “more time and patience.”
“I hope the contractors give us more time because it is not easy to solve this mess,” she said.
“But these are the things that we have to solve to move forward,” added Zaballero.
A number of contractors have demanded payment from the Capitol in the past six months for the unpaid projects.
The biggest payable comes from a contract with WTG Construction and Development Corp. at P188.8 million.
Another P146.9 million is owed to Sargaso Construction and Development Corp. followed by Duros Devt. Corp. for P83 million, she said.
In her turnover speech last June, Garcia declared the province was “debt-free” with over P3 billion in assets.
However, many financial obligations were uncovered by the PB after the elections including contractors for road projects (P480 million), buildings (P92.4 million), waterworks (P12.4 million), and several hotels, restaurants and travel agencies.