Capitol won’t pay for Gwen projects

CEBU, Philippines - Cebu Governor Hilario Davide III yesterday reiterated his position not to pay for contracts entered into by the previous administration that were not authorized by the Provincial Board.

Davide made the statement following the decision made by the Construction Industry Authority of the Philippines of the Department of Trade and Industry directing Capitol to pay for the P80 million claim of Duros Development Corporation for its project with the provincial government.

Duros has filed a case before the Construction Industry Arbitration Commission, which has jurisdiction over the matter, after the province, under Davide’s administration, opted not to pay for the claim.

On November 21, CIAP’s arbitral tribunal ruled in favor of Duros and directed the province to pay for the amount.

Davide said Capitol will raise the matter to the Court of Appeals through a Petition for Review. The province will also ask the appellate court to issue a temporary restraining order on CIAP’s ruling.

During its special session last Thursday, the Provincial Board authorized Davide to file the petition.

“The aforementioned decision was adverse to the Province of Cebu,” reads part of the resolution the Board approved.

Aside from Duros, 30 other contractors are claiming payment from Capitol.

Earlier, the Commission on Audit directed the provincial government to recover more than P500 million worth of funds that were disbursed “illegally” as payment for infrastructure projects undertaken from 2008 to 2011.

COA found out that Capitol funded at least 58 infrastructure projects totaling P540 million without authority from the Provincial Board.

In his precious interviews, Davide said ratifying the contracts would mean condoning an “illegal” act, which is in contrary to his promise of good governance. — Michael Vencynth H. Braga/JMO (FREEMAN)