COA raps Cebu City mayor, 8 executives

CEBU - The Commission on Audit (COA) has given Mayor Alvin Garcia, eight other city officials and F.E. Zuellig Inc. until June 3 to settle the P10.6-million payment made in advance for 600 metric tons of bitumen, a component of asphalt, which until now has never been delivered.

COA, which issued a notice of disallowance for the payment last Dec. 10, ordered Garcia, his executive secretary Melchor Tormis, city administrator Danilo Almendras, general services officer Rolando Ardosa, city accountant Edna Jaca, city treasurer Eustaquio Cesa and Julius Villordon and Antonio Sanchez of the city's department of engineering and public works, to pay more than a million pesos each.

They were given six months to comply with the conditions of the disallowance which will end next month. If they fail to pay, the COA regional office will file criminal and administrative charges against them.

The reasons for the COA's disallowance included the following:

* Non-delivery of the bitumen;

* The payment, which was made in advance, was a violation of Section 88 of Presidential Decree 1445 and Section 338 of Republic Act 7160;

* The mode of procurement was not applicable;

* The contract was made contrary to the requirements of PD 1445;

* The public bidding tended to favor F.E. Zuellig; and

* The price quotation was not certain and definite and was in foreign currency.

Despite COA's ultimatum, Garcia said there is a possibility that F.E. Zuellig will pay for the amount that was disallowed.

The city government has filed a case against Zuellig, and Garcia said he will just wait for the resolution of the case before he makes his next move.

"Hopefully, it won't be long before the (case is resolved)," the mayor said.

Garcia and the other city officials implicated in the transaction, however, have yet to receive formal communications from COA regarding the matter.