P250M worth of equipment: Detractors behind ‘overpricing’ allegation - Governor

CEBU, Philippines - Cebu Governor Hilario Davide III yesterday reiterated that there was no irregularity in the bidding for the purchase of P250 million worth of light and heavy equipment for the Capitol.

He said he does not believe that the equipment offered by the winning bidder may have been overpriced, as reported in the banner story of The FREEMAN yesterday.

He believed that the allegation, including insinuations that the Capitol favored a bidder, was just invented by his detractors, saying the Capitol’s Bids and Awards Committee has his confidence.

“I already made my statement supporting the decision of the BAC,” he told reporters yesterday.

The FREEMAN tried to contact lawyer Mark Tolentino, BAC chairman, for his comment on the report but calls were left unanswered.

The FREEMAN later received a text message from Provincial Information Officer Ethel Natera asking if Tolentino’s comment was still needed since Davide already issued his during a press conference yesterday.

“Attorney Mark has been explaining this issue a lot of times,” she said.

Davide earlier signed the notice of award for the equipment purchase to ConEquip Philippines, Inc. as the bidder with the “lowest calculated and responsive bids.”

Conequip bested RDAK Transport Equipment, Inc. which offered P235 million, and Civic Merchandising, Inc. (P237 million). BAC post-disqualified RDAK and Civic as they allegedly did not meet the specification requirements.

Among the equipment offered by Conequip was a model ZZ3167M3811 4x2 dump truck from China which had a bid price of P5 million per unit.

A price quotation document for the same truck model, however, revealed that another company, which appeared to be related to Conequip, has offered the same truck for P2.6 million. This means that Conequip would supply the Capitol dump truck units that each costs P2.52 million more.

The price quotation was issued by Seth Oliver Tio, managing director of Mighty Brothers Heavy Equipment, to a company in Mandaue City. An Internet search would show that Tio is connected with Conequip.

The Capitol bid out in September the purchase of at least 27 units of various brand new construction light and heavy equipment with a budget allocation of P252.68 million.

The equipment to be procured are two brand new boom truck; one water tanker; nine dump trucks; one crawler tractor; two 10-wheeler self-loader trucks; three hydraulic excavators; two payloaders; two motor graders; two vibratory rollers; one forklift; and one new man lift.

The BAC documents are still pending before the Provincial Board Ad-Hoc Committee headed by Board Member Grecilda Sanchez-Zaballero for review before Davide is given the authority to enter into and sign the contract. — /RHM (FREEMAN)