DPWH sued for unpaid road project

CEBU, Philippines - A private company has sued the Department of Public Works and Highways (DPWH) for allegedly failing to pay the former P15.3 million.

According to Mary Ann Gonzalodo, owner of Gonzalodo Enterprises, the amount represents the actual expenses for the concreting of the Mactan Circumferential Road in Lapu-Lapu City.

“Plaintiff would like to underscore the fact that in undertaking the project, Gonzalodo Enterprises introduced materials, labor, time and effort to prosecute the said projects. And in doing so, plaintiff spent P15,336,291.34 just to make sure that the problem of the road be addressed. As a matter of fact, that said projects were turned over to the government and used by the general public,” Gonzalodo said in her complaint in court.

 Gonzalodo filed a case for collection for sum of money with interest against DPWH represented by Secretary Rogelio Singson, Central Visayas regional director, and district engineer of Cebu 6th District Office.

 Gonzalodo said that on September 20, 2011, the 6th Engineering Office of DPWH in Cebu posted an invitation to bid for the concreting of the Mactan Circumferential Road in Lapu-Lapu City. The project reportedly has an approved budget of around P18.8 million.

 On October 20, 2011, Gonzalodo Enterprises submitted its bid and was declared the lowest bidder. After the bidding, the Engineering Office through Santiago T. Suico, the officer-in-charge, reportedly requested the company to start working on the project despite the absence of a Special Allotment Release Order (SARO).

 Because of Suico’s request and that of Lapu-Lapu City Mayor Paz Radaza, the company started working on the project on December 12, 2011. Gonzalodo said they were assured that they will be paid upon receipt of the SARO. 

Sometime in January 2012, Gonzalodo said she went to the Regional Office of DPWH to follow-up on the budget and she was reportedly told that the money was being processed. DPWH exercised control and supervision over the project, she said.

 Two months later, however, with 84.07 percent of the project already completed, DPWH still failed to pay the company. By this time, expenses have totaled P15.3 million, Gonzalodo said.

Several demands reportedly remained unheeded, prompting the company to stop working on the project.

“Considering the expenses incurred by the plaintiff and the damage it caused to its financial status, plaintiff decided not to resume its work unless payment is made by defendants,” the complaint reads.

Gonzalodo said she also wondered why the money has not been released considering that Singson, in a marginal note, reportedly ordered payment based on actual price bid.

The company never received anything from DPWH until today, she said.  JMO (FREEMAN)