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Cebu News

City saved P12M in CCSC rehab

- Jessica Ann R. Pareja - The Philippine Star

CEBU, Philippines - The Cebu City Bids and Awards Committee is preparing all documents to prove to the Commission on Audit that the rehabilitation of the Cebu City Sports Center track oval was not disadvantageous to the city.

City Administrator Jose Marie Poblete, who is also a member of BAC, said that what they can assure the public is that the city government spent not more than what was in the contract.

He explained that the P12.3-million savings mentioned in the contract with the Philippine Sports Commission and with the contractor, Sierra Universal Corporation, was “only a premise and not a promise.”

In the contract, it mentioned said that the city government could save over P12.3 million in taxes if the importation of the rubber material will be coursed through the Philippine Sports Commission, which, under the law, may seek exemption from the said tax.

To recall, the Olympic standard and International Association of Athletic Federations-certified Rekortan M99 rubberized track oval system installed at the CCSC oval is not available in the country.

It was imported from Europe, United States, Hong Kong and Malaysia.

The city government paid a total of P26.9 million for the rehabilitation of the CCSC track oval. Of the amount, P2 million was for the removal of the old rubber while the rest was for the installation of the new rubber.

The cost of the project could have reached up to P36.385 million if the importation of the rubber was not coursed through PSC.

Poblete said that the P12.3-million savings, although hypothetical, still is a savings.

There is no provision in the contract that says the contractor will turn over P12.3 million since it was already deducted in the final contract price.

Poblete said they will formally answer and give clarifications to the findings of COA as soon as they can gather all the supporting documents.

 “What is really important is the project is there and it was completed within the contract cost,” Poblete said.    - THE FREEMAN

CEBU CITY BIDS AND AWARDS COMMITTEE CEBU CITY SPORTS CENTER CITY CITY ADMINISTRATOR JOSE MARIE POBLETE HONG KONG AND MALAYSIA INTERNATIONAL ASSOCIATION OF ATHLETIC FEDERATIONS MILLION PHILIPPINE SPORTS COMMISSION POBLETE SIERRA UNIVERSAL CORPORATION UNITED STATES
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