Cebu City bus project: Rejected bidder sues Osmeña

CEBU, Philippines — Cebu City Mayor Tomas Osmeña is facing a complaint before the Office of the Ombudsman-Visayas for rejecting a company with the lowest bid for the city’s bus project.

Jonathan Jantay, general manager of Manila-based Durabuilt Motors, Inc., flew to Cebu City from Manila to file the complaint against Osmeña yesterday afternoon.

“The reason relied upon by Mayor Osmeña for rejecting the lowest bid of our company was clearly not a pre-requisite when the bidding started and is almost an afterthought and may be construed as intended to only favor certain bidders,” Jantay said in his complaint.

“Rejected. No Chinese because of bad experience,” was Osmeña’s reason.

Four companies bid for the P152 million bus project – JACG United Enterprises, Inc., Durabuilt Motor Inc., RDAK Transport, and Hino Motor Phils Corp.

The city’s Bids and Awards Committee declared Durabuilt as the lowest bidder at P125.4 million for 19 buses and recommended to award the contract to the company, but Osmeña denied the recommendation.

Durabuilt filed a motion for reconsideration but has not received a reply from the mayor’s office as of yesterday.

BAC Chairman Ronald Malacora said Osmeña is the head of the procuring entity that has the authority to approve or disapprove the recommendations of BAC.

Jantay said it is unfair for the city to reject the company because of “bad experience” when it was the first time for Durabuilt to participate in the city’s bidding.

He said had the city incorporated a “no China-made” requisite in its invitation to bid, Durabuilt would not have joined the bidding and bought bid documents worth P50,000.

The bid documents list the technical requirements for the vehicles to be purchased.

Jantay said Osmeña violated the Government Procurement Reform Act.

“Perusing section 41 of the same IRR of R.A. 9184, we find that the reason relied upon by Mayor Osmeña is not one of those allowed by the law for the denial of the contract to our company,” he said.

Durabuilt has said it is engaged in the importation and sales of various heavy equipment and buses, and its component parts in the country.

Osmeña told The Freeman he will face the charges in court.

“Bad experience speaks for itself. Among others, half of Rama's garbage trucks were not running after two years. Non-availability of spare parts. Etc. I won't gamble the people’s money on this. I will answer everything in court.”

Osmeña is referring to former mayor Michael Rama.

The city will use the 19 buses to expand its free bus ride program for workers at the I.T. Park, the seat of call centers in Cebu. For now, the program caters to workers from Barangays Talamban and Bulacao. It will cater to workers from other barangays once the 19 buses are procured. (FREEMAN)