With the recent Ombudsman ruling, allegations of overpricing in the construction of the Cebu International Convention Center (CICC) should be laid to rest, said former governor and now Rep. Gwendolyn Garcia of Cebu’s 3rd district.
“The Ombudsman itself has found no overpricing in the construction of the CICC. This should clear the issue once and for all, and should guide those who wish to capitalize on it to ‘never again’ replace the truth with their own facts,” Garcia said in a press statement.
She noted that the Ombudsman’s ruling on the administrative aspect of the CICC case focused on the use of alternative source of bidding for structural steel and an “oral contract” with the builder, WT Construction for extra work done.
The CICC was built in 2006 as a centerpiece project of Garcia’s administration.
Garcia was spared from administrative liabilities under the Aguinaldo doctrine of condonation due to her reelection in 2007 and 2010.
However, the Ombudsman’s office has yet to release its ruling on the criminal charge filed against Garcia and other respondents for the CICC for alleged violation of the Anti-Graft and Corrupt Practices Act.
The Ombudsman said Garcia would have been administratively liable for sanctioning additional works at the CICC without any appropriation and bidding—a violation of Republic Act 9184 or the Government Procurement Reform Act if not for her reelection as governor.
Nine other persons – the chairman and members of the Bids and Awards Committee – were found guilty of disregarding bidding requirements and ordered dismissed from service.
Respondents no longer working in government will be fined the equivalent of one-year’s salary and may be deducted from their retirement benefits.
Ordered dismissed from service were former provincial administrator Eduardo Habin, former provincial general service officer Bernard Calderon, former provincial health officer Cristina Giango, former provincial planning and development officer Adolfo Quiroga, former provincial agriculturist Necias Vicoy Jr, former provincial treasurer Roy Salubre, former budget Officer Emmy
Gingoyon, and former assistant provincial engineer Eulogio Pelayre, and provincial legal officer Marino Martinquilla.
Garcia yesterday said the Ombudsman’s ruling focused on the issues of “alternative source bidding” and the “oral contract” with WT Construction Inc.
However, she said the anti-graft office applied its own interpretation of the rules notwithstanding previous findings by the Commission on Audit (COA) that found no irregularity in the resort to “alternative source bidding.”
“When the Bids and Awards Committee (BAC) resorted to alternative source bidding, time was of the essence. They were under time constraint to finish the CICC in eight months for the Asean Summit,” Garcia said.
“The name of Cebu was at stake at that time. And we do not want to put to shame our province.”
Garcia said then president Gloria Macapagal Arroyo even ordered the province to speed up work on the CICC so it would be completed in time for the Asean Summit in January 2007.
Garcia said the Supreme Court already ruled that the oral contract with WT Construction was valid and that payment be made by the province on this basis.
The CICC in Mandaue City was built at a cost of over P800 million.
Cebu graft investigators found the transaction for the additional work on the CICC “in violation of the constitutional provision that no money shall be paid out of the treasury except in pursuance of an appropriation by law.”
But the Cebu investigators said they “cannot establish evidence to show that the procurement in the construction of CICC is overpriced.”
In 2009, the CICC case was endorsed to the Manila central office of the Ombudsman after Cebu investigators and their superior couldn’t agree on the findings.
Then Asst. Ombudsman Virginia Palanca-Santiago and staff investigators found basis to conduct a formal investigation.
However, Deputy Ombudsman Pelagio Apostol disapproved the findings and chose to dismiss the charges that stemmed from the complaint filed by whistleblower Crisologo Saavedra.
The case was sent to Manila just in time when former Ombudsman Merceditas Gutierrez mandated that all cases involving high-ranking officials, including governors, shall be resolved by the central office.
The Ombudsman approved the findings that Garcia had repeatedly approved the recommendations of the BAC to resort to limited source bidding for steel fences, gates and other goods that were not justified.
The BAC recommended this mode to Garcia “over and over” in flagrant violation of rules.
Garcia was held responsible for sanctioning additional works based on an “oral contract” without a covering appropriation, without bidding and without a certification that funds were available.
WT Construction won the bidding in 2006 for work on the CICC’s foundation as well as phase 2 for the superstructure.
It was again hired to undertake additional work to catch up with the deadline to finish the edifice in time for the Asean Summit in 2007.
The private contractor sued the Capitol in January 2008 to collect its fees for the extra work and won the lawsuit.
The Regional Trial Court (RTC) and later the High Court ordered the province to pay the contractor P263.2 milion bringing the total cost of the CICC to about P836 million.