Danao Mayor: Vetoed amount already released for project

CEBU, Philippines - Danao City Mayor Ramon Durano III yesterday clarified recent reports on the disallowance amounting to P64,483,461 in connection with the city’s Bulk Supply Water Project.

In a statement to The FREEMAN, Durano pointed out that the  amount, which represented mainly the 15 percent mobilization fund stipulated in the Bulk Water Contract, was released during his third term as mayor in 2007 to 2010, precisely to jumpstart the implementation of said project.

Durano added that the release of the mobilization fund was a contractual obligation of the city pursuant to the contract.

Consequently, he said, with the timely release of the funds, the project was partially implemented during his term.

Unfortunately, Durano said the subsequent administration under his brother, former mayor Ramon Durano Jr., which took over the city starting in sometime July 2010, practically put the project on hold.

According to Mayor Durano, his brother’s administration refused to execute the documents that would have enabled the transport of the fabricated materials to the country, which were already funded out of the said mobilization fund.

These materials, he said, were necessary for the completion of the initial phase of the project.

Likewise, the city mayor pointed out that the previous administration of Durano, Jr. failed to submit the water supply contract with the Metro Cebu Water District to the City Council, which he headed as vice mayor at that time, for its ratification.

The city mayor assured that in due time, his administration would account for the mobilization fund that was released to the contractor.

Durano assured the continuation of the project for the benefits of the people of the city.

In this regard, he said that the city is currently ironing out the documentary requirements necessary for the immediate continuation of the project such as the approval of the water supply contract with MCWD and of the National Economic Development Authority (NEDA).

The mayor said negotiations with the MCWD is being followed up, which he hoped could be concluded soon.

As a manifestation of its intention to expedite the program, recently, the City Council already approved the release of the Supplemental Fund in the amount of P23 million as price adjustment for the project.

The amount is in line with the limitation provided by the applicable rules on price adjustments.

Further, the City Council also approved the amount of P43 million intended for the development and rehabilitation of the water pipes of the city.

Earlier, funds originally intended for the water pipe rehabilitation and development was diverted during the previous administration of the former mayor, compelling the current administration to infuse replacement funds.

Finally, the city mayor also expressed high hopes that once the project resume immediately, the Commission on Audit could lift its notice of disallowance. — (FREEMAN)