Ombudsman probes other Drilon project

ILOILO CITY, Philippines—A P13.5-million initiative to improve the Iloilo River Esplanade, another pet project of Senate President Franklin Drilon, is under investigation by the Office of the Ombudsman, for alleged irregularities in the procurement process.

The Visayas branch of the Ombudsman has directed seven officials of the Department of Public Works and Highways (DPWH) to respond to criminal and administrative complaints in connection with the 1.2-kilometer promenade stretching from Sen. Benigno Aquino Jr. Avenue to Carpenter’s Bridge at Mandurriao district.

The officials, including Regional Director Edilberto Tayao, are facing allegations of violating Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) and the Government Procurement Act and administrative violations.

Tayao has denied wrongdoing.

The complaint was filed on Sept. 10, 2013, by former Iloilo provincial administrator Manuel Mejorada who also had lodged a plunder complaint in the Ombudsman against Drilon and other officials for alleged irregularities in the construction of the P747-million Iloilo Convention Center (ICC).

Rigged and overpriced

Mejorada also claimed the bidding for the esplanade was “rigged” for a favored contractor and that the project was overpriced.

In its final evaluation report, the Ombudsman Visayas said the DPWH bids and awards committee had failed to readvertise the project after it corrected the approved contract—first from P10,110,640.14 to P13,092,802.58 and again to P13,092,238.67.

The committee also failed to publish the notice to award, contract and notice to proceed with the project, according to the evaluation report, a copy of which was obtained by the Inquirer.

Drilon earlier denied any involvement in the project, aside from allocating funds from his Priority Development Assistance Fund. He also insisted that the project was done according to law and that the accusations were malicious and baseless.

The esplanade has become a major tourist attraction and prime recreational area for walking, jogging, open air dining and a venue for river water sports in the city.

Delay for Apec

In a statement, Mejorada also decried Drilon’s accusation that he (Mejorada) had caused delays in the construction of the convention center, which is being rushed for completion in time for the hosting of next year’s Asia-Pacific Economic Cooperation Conference.

“I find it pathetic for (Drilon) to blame me for any delays in the completion of the (ICC). I did nothing to stop the project. All I did was file a case before the Ombudsman. It’s not my fault that the procurement and implementation of this project are fraught with violations of the law,” Mejorada said.

“It’s his fault. He engineered everything,” he added.

Last week, Drilon said that “because of the malicious and baseless allegations against the construction of the ICC, contractors and other participants are getting afraid that their names and businesses will be the next target of lies being concocted, and that their names will be dragged into the issue.”

Mejorada filed the plunder complaint before the Ombudsman against Drilon, Tourism Secretary Ramon Jimenez and Public Works Secretary Rogelio Singson on Oct. 30, or 10 days after the failure of the first bidding for the second phase of the ICC.

Lowest bid

WERR Corp. International submitted the lowest bid of P166.094 million for the project, lower than the approved budget for the contract of P187.602 million.

Two other contractors submitted higher bids. These were JD Legaspi Construction offered a bid of P178.388 million and HSO Construction Corp. which offered P179.991 million.

WERR was later disqualified in a post-bidding evaluation due to or negative slippage—delays in accomplishment—in the implementation of other DPWH projects.

Hilmarc’s Construction Corp. (HCC) did not participate in the bid. HCC, which constructed the allegedly overpriced Makati City parking building, also did not participate in the two failed biddings for the first phase of the project but ended up bagging the contract through negotiated procurement.

The Iloilo City council last week passed a resolution declaring Mejorada persona non grata (unwelcome) for describing Iloilo as a “bird’s nest of corruption.” City councilors said the declaration was a “strong and symbolic gesture” against Mejorada’s statements that besmirched the image of the city.

Mejorada said he was “saddened and pained” by the action of the city council but vowed to file administrative and criminal charges against those who voted for the resolution.