PBMC asked to clarify its financial standing

The local Economic Enterprise Council has required the winning developer of a Capitol-owned lot in barangay Banilad to submit bank commitments issued by local banks certifying that it is willing to extend to the latter P1.8 billion for the development of the said property.

Provincial Board member Victor Maambong, who also sits as a member of the EEC, yesterday told The Freeman it is his understanding that the Philippine Beijing Motors Corp. has until June 20 to submit the necessary bank documents either issued by a local bank, or a foreign bank but which has a conduit bank here in the country.

Apparently, the EEC has rejected the certification issued by China Banking Corporation that guaranteed that PBMC is capable of investing P800 million for the said project and another letter of commitment issued by Hong Kong and Shanghai Banking Corporation certifying that PBMC has a cash deposit of P600 million with them.

This as both financial institutions are foreign banks, which "do not exist in our laws", and thus render us incapable of verifying their financial standing, according to Maambong.

The mentioned bank documents were submitted by PBMC during the EEC's meeting last May 30 in compliance to the bidding procedure that they should submit bank documents two weeks after they were issued with the notice of award.

But for failure to submit the correct bank documents, they have been given a grace period of until June 20 to comply with the requirements.

As such, Maambong said the EEC is requiring PBMC to submit bank documents issued by a duly licensed local bank and/or a foreign bank that has a conduit bank here in the country.

The EEC is going to meet again on June 20 to scrutinize the bank documents they required the PBMC to submit.

During the actual bidding held last May 10 at the Capitol, one of the documents submitted by PBMC was an oath of undertaking that in the event that it shall be awarded the notice of contract, it will be able to submit either certification of cash deposit from a duly-licensed commercial bank in the amount of the project cost, or bank guarantee on the same amount, or a certification from a licensed bank that it is willing to extend to the bidder in the amount of the project, or a combination of all three documents that totals to the P1.873 billion project cost.

Under its project proposal, PBMC offered to build a 21-story hotel and commercial complex, which will house a car mall, supermarket, exhibit building and museum.

Further, PBMC is required to submit papers showing that their company and three other foreign partners are already merged as consortium and thus have legal personality to transact with the provincial government.

"They need to prove that the consortium exists and they need to substantiate their financial capability," Maambong said.

Shortly after PBMC quoted the highest bid to develop a 2.8564-hectare Capitol property in barangay Banilad for commercial use under a Build-Transfer-Operate scheme last May 10, questions were raised regarding its financial capability after reportedly having failed to pay its financial obligations with the Metropolitan Bank and Trust Company.

In the event that it still fails to submit the said required documents, then Capitol will forfeit the bid security of PBMC and of its other partners in the amount of P2.5 million in GSI bonds in favor of the Province of Cebu which has a 120-day validity period. Submission of such bid security is part of the technical bids submitted by each participating bidders last May 10.

Also, Capitol will revoke the notice of award that it issued to PBMC and consider the bid of the next second highest bidder, the SM Hypermarket which offered P229 million to build a supermarket. - Cristina C. Birondo