PROPOSED MAGSAYSAY TOURISM PARK

Can a company with only P100,000 paid-up capital and a subscribed capital of P400,000 be capable of constructing an P84 million project on a build-operate-transfer scheme? Worse, can it win the contract when it was never pre-qualified to participate in the bidding?

These questions cropped up after a copy of the Metrostate Realty Development Corporation’s (MRDC) registration with the Securities and Exchange Commission (SEC) was received by the Dagupan City Council.

MRDC reportedly won in an alleged bidding to construct the two-storey tourism-oriented complex 1,900 square meters inside the 4,000-square meter lot of the Magsaysay Park Development Project, owned by the city.

Vice Mayor Alvin Fernandez, in another letter to City Administrator Rafael Baraan and City Legal Officer Geraldine Baniqued dated December 7, 2006, revealed that Metrostate is a new corporation that clearly has not undergone prequalification and qualification by the Special Bids and Award Committee (SBAC) headed by Baraan.

In a talk to newsmen, the vice mayor said Metrostate was only registered with SEC only sometime in September or October although the bidding process already started July 11, 2006, the day when the documents for pre-qualification requirements for eligibility were submitted.

Fernandez said the bidding was already almost complete when Metrostate applied for and was issued registration by SEC.

Fernandez said Metrostate is a corporation formed by S and F (Siapno and Feliciano) Realty Corporation and LXS Builders and Supplies.

It was S & F (Siapno and Feliciano) Realty Corp in joint venture with LXS, not Metrostate, that submitted the letter of intent to the city government, along with JM Feliciano Construction of Mabalacat, Pampanga; and Gamma Construction of Batasan Hill, Quezon City but which was reportedly was disqualified because it did not have the required Philippine Contractors Accreditation Board (PCAB) license.

Fernandez said that LXS has PCAB license but he doubts if Metrostate can use the former’s license being a new corporation, separate from S & F and LXS.

He said it would be unfair to Gama if the SBAC would give an opportunity to Metrostate to get a PBAC license after the bidding was already completed.

As gleaned from its incorporation papers, the Metrostate lists seven incorporators, namely Romualdo Siapno, Mark F. Siapno, Maureen Y. Chua, Mary Karen C. Monzon, Mark Alvin P. Dy and Alexander Siapno. The first five paid P66,700, while the last two paid P60,000 and P6,500 respectively to form the company’s paid up capital.

The authorized capital stock of the company is P1.6 million, divided into 16,000 shares with the par value of P100 per share.

Then Fernandez reiterated his question to both Baraan and Baniqued how SBAC could have decided that it was Metrostate Realty Corporation that had the most responsive bid when there was no technical plan with which the bidders could have based their bid. He alluded to the absence of the plan prepared by the City Engineer and which had to be approved by the city council.

The vice mayor further asked Baraan and Baniqued how the city government could relate with Metrostate now, when it is obviously a different entity that was not prequalified and qualified by the SBAC.

Fernandez also instructed City Council Secretary Jorge Estrada to write the Regional Development Council to determine if the RDC Excom Resolution No. 66, Series of 2006 already complies with the requirement of the BOT law that mandates the RDC’s endorsement for projects costing above P50 million.

A copy of the RDC ExCom Resolution No. 66, S. 2006 obtained by PUNCH showed that it was issued on November 28,2006, four months after the bidding process had started. Bidding process began on or before July, 11, 2006.

Fernandez maintained that the RDC, with Dr. Salvador Duque as chairman and Pangasinan Governor Victor Agbayani as co-chairman, is different from the RDC executive committee.

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