CICC: Gained & drained

My last Monday’s piece (CICC: Any return on investment?) was both timely and appropriate.  It was timely because in a graft-ridden reign (like that of suspended Gov. Gwen Garcia), when an opportunity (with a decent acting governor) to know the truth passes, we just have to grab it.  It was appropriate because we, the Cebuano taxpayers, would like to know where our taxes went.  To acting Gov. Agnes Magpale’s credit, in the ensuing days, the true financial picture of the Cebu International Convention Center (CICC) was revealed. The result, as expected, was an accumulation of huge losses since 2008.

Financially bludgeoned it may seem, still, a few people reasoned out that it wasn’t built to make money anyway but to serve the Province of Cebu’s constituents’ needs.  So that, whoever initiated this project should be commended, they asserted. Obviously, they’ve equated such structure to that of a basketball covered court where constituents can hold their regular sports tournaments or benefit dances.  The question though is, was this CICC built for such purpose? Is this not built for exhibits and conventions, as the name suggests.  Or, simply put, is it not built as an income generating economic enterprise?

To recall, the local government code mandated LGUs “to establish public economic enterprises to generate local resources aside from traditional sources of funds – the Internal Revenue Allotment”.  Thus, truly, government executives who are exerting extra efforts to generate and mobilize local resources to fund operations and local initiatives should be commended. 

Truth to tell, when done decently, it will not just be a good source of funds for the LGUs but of its constituents as well.  Remarkably, then Gov. Lito Osmeña set an example when he took to task the development of the Province of Cebu’s Lahug airport property.  Banking on the successful conversion of the capitol-owned 40-hectare Club Filipino Golf Club into a bustling Cebu Business Park, then Gov. Osmeña inked a partnership with the Ayala Group in forming the Cebu Property Ventures and Development Corp. in 1990.  Such partnership led to the establishment of the now revered Cebu Asiatown IT Park.

While these undertakings are proven successes, a few other LGU initiated economic enterprises are riddled with controversies.  The Province of Cebu, for one, apart from the much-maligned primarily underwater Balili Property acquisition (by suspended Gov. Gwen Garcia) of the Cebu Capitol, the CICC reared its ugly head too.

First and foremost, after summing up all costs incurred in the construction of the CICC, reportedly, the amount has now breached P1 billion.  Knowing fully well that the lot is owned by the City of Mandaue, then, such costs represent construction materials/supplies and labor alone.  Anyone may visit the CICC and he will certainly realize that he doesn’t need a strong academic background or a 40-year experience in construction business for him to know how blatantly padded it is.

Secondly, as it was poorly designed, operating costs, like electricity, have ballooned as the air conditioning system is centralized (as if CICC is a department store).  Farcically too, water consumption is ridiculously high as the CICC purchases water from still undisclosed source (not MCWD) at P60 per cubic meter.  Moreover, the CICC is poorly constructed.  As a testament to that, its roof is peppered with leaks.  Obviously, therefore, its repair costs will surely shoot up. 

Worst, these operating costs, irregular and unreasonable they may seem, were incurred under the nose of a supposedly known management company named Philippine Exhibits and Themeparks Corporation (PETCO).  Already receiving millions in management fees, they never had the audacity to take the initiative of rectifying suspended Gov. Gwen Garcia’s very obvious operational lapses. 

Indeed, battered and mangled, the CICC is every square inch a fiasco.  During construction, it was gained.  During operation, it was drained. 

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