Tomas sues Mike over Carbon Market Unit 2

CEBU, Philippines - Another city property is becoming the focus of the quarrel between former mayor Tomas Osmeña and Mayor Michael Rama.

 This after Osmeña filed criminal charges for violation of the anti-graft law and Government Procurement Act before the Office of the Ombudsman-Visayas against Mayor Michael Rama and 19 other Cebu City Hall officials and employees over Carbon Market Unit 2.

Osmeña alleged that the respondents connived with each other when they awarded the P167–million project for the reconstruction of Unit 2 to a private contractor even if the contractor was not qualified to enter into contracts of projects over P100 million with the government.

Aside from Rama, named respondents of the two criminal cases are head of the Bids and Awards Committee Rafael Christopher Yap, city engineer Jose Marie Poblete, budget officer Nelfa Briones and BAC members Veronica Morelos, Josefa Ylanan and Dr. Alice Utlang.

Other respondents were members of the BAC-Technical Working Group namely Jose Daluz III as head and June Nadine Sison, Joel Reston, Estela Delos Reyes, Yuriy Sesican, Gilfer Phodore Bucabal, Joemar Aboyabor and Emmanuel Ricardo as members.

The members of the secretariat Jason Bongcales, Carlota Nelyn Paglinawan, and Kenneth Carmelita Enriquez, now head of the City Development and Planning Office, were not spared.

In his complaint filed before the Ombudsman-Visayas last Friday, Osmeña also included in the charges the winning bidder of the project, Geety Realty and Development Corp., based in Barangay Bulacao, Cebu City.

Osmeña claimed that Rama and the rest of the respondents caused undue injury to the city and gave unwarranted benefit to the private contractor even when it was no qualified to engage in the project.

Osmeña said that of the six private contractors who participated in the bidding for the project, the BAC headed by Yap concluded that only the bid of Geety Realty passed the preliminary examination.

It was stated that after the BAC technical working group completed its final evaluation of the documents, they found that Geety Realty had the lowest calculated and responsive bids in the amount of P167.3 million.

The BAC then recommended to the City Council that Rama be authorized to enter into a contract with the contractor.

On April 18, 2013, Poblete, who used to be the city administrator, issued a Notice to Proceed with Geety Realty. Osmeña said Rama entered into a contract with the said private contractor without authority from the City Council.

Osmeña said he was surprised because five days after the Notice to Proceed was issued to the contractor, the latter billed City Hall for the payment of P25.1 million or the 15 percent advance payment of the contract price.

Osmeña said Section 338 of the Local Government Code prohibits the granting of advance payment. The law provides that “no money shall be paid on account of any contract under which no services have been rendered or goods delivered.”

He added that when he verified from the Philippine Contractors Accreditation Board he discovered that Geety Realty is not qualified to engage in projects that cost above P100 million.

Osmeña added that he also found out that the said private contractor falsified its tax clearance and that the BAC Technical Working Group failed to detect this.

The former mayor sent a letter to Rama inquiring why the construction of the market building was delayed, but he was only told his letter has been referred to the City Legal Office.

“There is a concealment and distortion of the truth of the proceedings since the respondents keep mum on the crux of this controversy and their inaction on the said letter-inquiry signifies that the respondents had their preference to the winning contractor and the respondents take undue advantage of their position in bad faith or manifesting dishonest and fraudulent scheme,” Osmeña said.

Rama said he is not surprised that Osmeña has again filed cases against him and said the matter will be referred to the City Legal Office so they can prepare their best answer and to prove they have not violated any law. — /BRP (FREEMAN)