FOR METROSTATE PROJECT

Complainant eyes flaws in bidding

A DagupeÑo finally stepped in to accuse former Dagupan City officials before the office of the Ombudsman in connection with the controversial construction at the former Magsasay Park. 

Former Dagupan Mayor Benjamin Lim and former City Administrator Rafael Baraan, now provincial administrator, are facing charges of violation of the country’s anti-graft and corrupt practices act for their alleged involvement in the controversial commercial-tourism project awarded to MetroState Realty Corporation at the former Magsaysay Park.

The complaint for possible violation of the Anti-Graft and Corrupt Practices Act was filed by one Edward Santos Jr. of Bonuan Boquig on May 14, 2007.

Acknowledging the complaint, the Office of the Ombudsman, in an order dated May 17, 2007 signed by  Acting Ombudsman Director Joaquin Salazar by authority of the Deputy Ombudsman    for   Luzon, has given the respondents within 10 days upon receipt of the complaint to submit their counter-affidavits.

Aside from Lim and Baraan, also named in the complaint are Assistant City Engineer Marcelo Prado, Assistant City Legal Officer Roy Laforteza, Emmanuel Palaganas, Planning Officer IV; and Luz de Guzman. Budget Officer IV, all members of the Local Technical Committee.

Santos also included in his complaint private respondents Mark Joseph Siapno of S and F Realty Corporation and his cousin Alexander Siapno of LXS Builders & Supplies, owners of MetroState Realty Corp., the supposed winning bidder for the project.

Lim and the other public respondents were accused by Santos of conspiring with the private contractors (Mark Joseph Siapno and Alexander Siapno) to circumvent the law to the prejudice of the Dagupan City government.

Construction for the project was started just before the election period early this year.

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<>THE MetroState project at the former Magsaysay Park was finally stopped last week.

The new city administration under Mayor Alipio Fernandez Jr. recently ordered to stop the construction on July 12 on account of MetroState’s failure to secure a building permit.

The start of the project can be traced to the Sanggunian Panlungsod’s passing of Resolution No. 4678-2004 expressing the intent of the Dagupan City government to use the Bugnay Market (Magsaysay Commercial Complex) as a tourism park after the same was gutted in 2004.

“However, Mayor Lim misinterpreted the resolution to mean that he can build a commercial edifice under the flimsy excuse that it forms part of the component of the Magsaysay Park,” the complaint stated.

“It is also against this backdrop that the city government of Dagupan — specifically Mayor Benjamin S. Lim and Rafael Baraan — decided to dip its fingers into the transactions which is extremely prejudicial to the interest of the city,” the complaint reads.

The complaint further cited Lim for creating a Special Awards and Bids Committee for the conduct of pre-qualification of contactors, bidding and evaluation of bids and the recommendation of awards concerning the development of a portion of Magsaysay lot for tourism/commercial development without consulting the Sangguniang Panlungsod.

“Again, without the Sangguniang Panlungsod’s approval, Lim and Baraan conspired with businessmen/contractors Mark Joseph Siapno, Alexander Romulo G. Siapno and Jose Feliciano to take-over the development of a portion of Magsaysay Park in the guise of a commercial/tourism park development,” the complaint further stated.

The three contractors are related by blood. The first two are first cousins, while the last one is their uncle.

Santos alleged that no document was submitted attesting that the project was included in the annual development plan and in the public investment plan approved by the Sangguniang Panlungsod as required under Section 302 of RA 7160, also known as the Local Government Code.

Furthermore, no technical plan prepared by the City Engineer was submitted to the Sangguniang Panlungsod for approval despite the fact that this is a requirement of law for Build-Operate-Transfer projects.

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There were three participants in the bidding process, namely: J.M. Feliciano Construction, S & F Realty Corporation in joint venture agreement with LXS Builders and Supplies; and Gamma Construction which was eventually disqualified for having no PCAB (Philippine Contractors Accreditation Board) registration.

In the meetings of the Special Bids and Awards Committee of which he was vice chairman, records showed that Baraan was explicit in his pronouncement that the bidder who will have a capital investment of lower than P83 million will be rejected outright.

The supposed winning bidder, MetroState Realty Corporation, has an authorized capital of only P1.1 million and a paid-up capital of P1.1 million.

Santos also noted that on the day of the bidding on October 20, 2006, representatives of the S & F Realty Corporation were nowhere to be found and in lieu and in stead were the representatives of the MetroState Realty Corporation.

In his complaint, Santos stated that there was prima facie evidence of violation of R.A. 3019 in all stages, citing instances where the law on bids and awards was not followed.

Since the contract is worth P84 million, the law requires a Class AA contractor to build. MetroState boasted of the license of LXS to justify its qualification as the winning bidder but LXS has only a Class B license.—LM

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