Dagupan set to confiscate performance bonds of contractor

By April 14, 2024Business

TWO ABANDONED PROJECTS

THE Dagupan City government wants the performance bonds of a contractor for two out of four unfinished and abandoned projects of the past Lim administration be confiscated.

This was gleaned in a letter to the Sangguniang Panlungsod dated April 1. 2024 by Atty. Aurora Valle in her capacity as chair of the Bids and Awards Committee (BAC) of the city government during the administration of Mayor Belen Fernandez.

The City Legal Office wrote the Bethel General Insurance and Surety Corporation for its liability as a Surety in the Performance Bond submitted for two of the abandoned projects dated February 5, 2024.

In her letter to Bethel Corporation, Valle wrote: “In view of the failure of the contractor to finish the projects, the City is constrained to collect from the performance bond which was put (up) by Mr. Siapno. It so happened that the performance bonds which he submitted reflects yourself as the guarantor. In view of this, we are now demanding the amount of the bond to be surrendered in favor of the City.”

The contractor of all the four projects is the LXS Builders owned by Alex Siapno, who Valle said, “opted to terminate his contracts with the City Government.”

The unfinished and abandoned projects cited are:

  1. Construction of three-storey Multi-Purpose Center for Social Welfare and Development (Stimulation Therapeutic Activity Center (STAC), Person with Disability Affairs Office located at Poblacion Oeste.
  2. Procurement and installation of stainless tables at Malimgas Public Market.

The two other unfinished and abandoned projects being subjected to evaluation are: 1) Upgrading of Malimgas Market Ground Floor Elevation, and 2) Upgrading of PCC Pavement and Drainage System of Zamora Street, Barangay IV, Dagupan City. (Leonardo Micua)

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