ALVIN FIRES QUESTIONS at city hall

Baraan, Baniqued told to explain

Dagupan City Vice Mayor Alvin Fernandez surprised his colleagues when he raised a series of damning questions and issues regarding the lease of Magsaysay Park by the city to Metrostate Realty Corporation headed by Architect Mark Joseph Siapno.

In his November 27, 2006 letter, posted on his personal website (http://alvin.prepys.com), Fernandez has sought written clarification from City Legal Officer Geraldine Baniqued and City Administrator Rafael Baraan to his questions, particularly how and why the former Magsaysay Park was bidded out and awarded to the supposed winning contractor without first passing through the Sangguniang Panlungsod (SP).

He asked Baraan if the City Development Council (CDC) had approved the plan, it being a Build-Operate-Transfer (BOT) project and therefore under the coverage of the BOT law known as Republic Act 7718, Section 4, requiring the submission of projects to municipal/city development councils.

The vice mayor asked if the CDC had carefully studied the type of Tourism Complex that it is to propose to the SP for authorization and whether the SP had authorized the BOT project?

“Was the technical plan in existence before the bidding was done? Who did the plan? Why was the SP not part of the process, authorization? Did it pass thru the Regional Development Council for confirmation having a projected P84 million investment? What is the basis of this P84 million investment?” Fernandez asked.

He said that if the answers to these questions are in the negative, then the city cannot proceed with the bidding of the project even as he pointed out that the SP has no power to authorize a BOT contract that is contrary to what is required of by Republic Act 7718 prior to bidding. 

In addition, he raised the following issues to the two officials:

1. Will the SP be guilty of abuse of discretion if it authorizes the contract of a BOT which did not pass through the process mandated by law? And will the expected authorization by the SP for the Mayor to enter into a contract cure the defects of the bidding process?

2. Would it consider holding a public hearing on the planned 25 year lease to another BOT operator since the people will be affected and the scope of the contract will go beyond the present administration?

3. What becomes of the SP Resolution 4678-2004 that identified the Magsaysay Park as a Tourism Park to be equipped with adequate recreational facilities? And of the SP Resolution 5406-2006 adopting the Magsaysay Park Development Project as a priority program of the city government as basis for future development? Does this resolution allow the bidding of a BOT (project)?

4. What was the basis of the bidding? Where did the bidders base their bid? When did the bidding process start? Who prescribed the minimum design, performance standards, plans and specifications? Since it is not a part of the Annual Investment Plan or Annual Development Plan, shouldn’t have the SP first confirmed and authorized the technical plan and terms of reference first before a BOT project was to be bidded out?

5. Can the city bid out a BOT plan that was not authorized by the SP for bidding? Does the city have a program of work that states the materials to be used? If this was sent to the SP, when was it sent?

6. Can the city bid out a lease rate that was not authorized by the SP? What is the basis for a term of 25 years? Will it be the tourism complex house that will be built, housing the public recreational facilities as stated in SP Resolution 4678-2004?

7. Has the city taken possession of the Bugnay Market or its remnants? Did the city get the insurance due the building?

8. Can the city bid out an area when the contract with Bugnay has not yet expired? If the city has pre-terminated the contract of lease for the continued use of the leased premises of the said corporation, did the SP approve or authorize or ratify such contract?

Fernandez also asked that the SP be furnished with a copy of the contract of termination of Bugnay to ensure that the rights of the city are protected.

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