Mayor Michael Rama’s plan to buy P100 million worth of heavy equipment for flood control and road repair in Cebu City is under scrutiny by the City Council.
So is the use of a P100-million outlay for improving roads in the North Reclamation Area (NRA).
His request to open a letter of credit with the Land Bank of the Philippines (LBP) to import the units and apply for tax exemption from the Department of Finance needs the council’s authorization.
“We have many concerns about the purchase. Yes, we need to act speedily but we also have to protect the funds of the city,” said Councilor Alvin Arcilla.
An executive session was called today to discuss the matter with the city’s Bids and Awards Committee and City Administrator Jose Marie Poblete.
The equipment for the Department of Engineering and Public Works (DEPW) includes an asphalt wheel paver, double drum vibratory asphalt compactor, wheel type hydraulic excavator, skid steer loader and new sewer and catch basin cleaner machine all worth P98. 6 million.
City Engineer Kenneth Carmelita Enriquez and Budget Officer Nelfa Briones were also called to explain why funds for the concreting of mountain roads were now identified as a fund source for road improvement at the NRA.
These should be separate funds, said Arcilla.
He said Mayor Rama earlier agreed to set aside P100 million for the improvement of NRA roads.
Councilor Roberto Cabarrubias, head of the infrastructure committee, presented to the council during their Oct. 26 session two resolutions authorizing the mayor to enter into contract with two construction firms for the improvement of NRA roads.
The first contract worth P18 million for the concreting of Third Avenue was awarded to GOWIL Builders.
The second contract worth P15.8 million for phase 2 of the concreting of J.L. Briones Street was awarded to WTG Construction and Development Corp.
Arcilla recalled that a P100 million lump sum was included in the 2011 budget for the concreting of mountain roads.
Items charged to the lump sum were supposed to undergo council review.
However, DEPW charged NRA road improvement projects worth P33.8 million to the lump sum appropriation.
Arcilla said the engineering office did not inform him of the charge.
He only found out about it in a meeting with Councilor Margot Osmeña, head of the council’s budget committee.
Cabarrubias said the city engineer explained in an earlier conversation that the P100-million lump sum appropriation did not specify that the funds should only be spent for paving mountain roads./Chief of Reporters Doris Bongcac