Now who is in bad faith?

The battle is just starting to heat up.

Just recently, Megaworld announced it would file a multi-billion peso civil and criminal case against construction company Datem Inc. for negligence and abandonment of commitment that resulted in huge losses to the former.

Expect Megaworld to ask for billions of pesos in damages against Datem, probably even more than what Datem is worth, for the latter’s alleged attempts to pressure it to pay unliquidated and unreconciled amounts through negative publicity which Megaworld described as reeking of malice and bad faith.

Kevin Tan, chief executive officer of Megaworld’s parent Alliance Global Group (AGG), said Megaworld was forced to have other contractors finish Datem’s job due to the latter’s negligence and failure to complete its obligations on time.

Tan stressed that Datem has to be accountable for its gross negligence to project timelines as well as its poor on-ground support and below standard worksmanship which Megaworld had to augment with more reputable, professional and better quality contractors, resulting in Megaworld incurring additional costs.

News reports say that one of the projects Datem failed to finish on time is one in Pasig, where only five of the 28 stories were completed from October 2019 to August 2022. Megaworld had to reassign the project to EEI, which was able to finish the project in one year.

Tan said other property development firms have also complained about Datem’s below par performance, revealing that Datem has been previously blacklisted, not just with Megaworld but also with other companies within their group.

Despite Datem’s failure to deliver the projects, the company demanded huge amounts of claims and adjustments. AGG’s chief executive emphasized that contrary to what Datem has been saying, Megaworld never committed fraud in its dealings with Datem. In fact, what is considered fraudulent is Datem demanding payments for projects they failed to deliver excellently and on time, Tan added.

The industry was shocked when Datem moved to have Megaworld’s assets frozen, considering that the P873 million that Datem is claiming is just 0.2 percent of Megaworld’s total assets.

Datem was able to obtain a writ of preliminary attachment earlier from the Quezon City Regional Trial Court freezing Megaworld’s assets to cover the unpaid claims which Datem said it has been trying to collect since 2018.

Datem claims that there was a delay in Megaworld’s payments under previous contracts and that a delay in payments affected its business, resulting in its inability to comply with its deliverables. Eventually, Datem said it had to stop work on some of its projects even as it demanded Megaworld to pay its arrears.

But after posting a counterbond of P873.3 million through a surety bond, the QC RTC discharged the writ of preliminary attachment last Nov. 15.

Megaworld emphasized that there was no fraud in its dealings with Datem. It said that records and the agreement with Datem would prove that there is no final, liquidated amount due to Datem since reconciliation is still ongoing.

In short, should Megaworld pay Datem for work done so far when Datem’s unfinished works and material delays in the accomplishment of its deliverables forced Megaworld to engage other contractors to complete the unfinished work, thereby incurring additional costs? Would Datem still receive anything after Megaworld deducts, among others, overpayments and additional costs from Datem’s material delay?

Megaworld pointed out that their agreement with Datem precisely used the phrases “tentative amount” and “final amount which shall be subjected to reconciliation.” Therefore, payment, if any, should be done only after reconciliation is finished, which wasn’t in this case.

The property developer added that Datem’s complaint in court and the ensuring court order that granted the writ of preliminary attachment in Datem’s favor were all premature.

It noted that Megaworld’s non-payment of Datem’s claim is valid and reasonable considering that there were ongoing talks relating to reconciliation and offsetting of amounts due between the parties.

Megaworld likewise said that it continues to be financially strong, with gross revenues of P45 billion and net income before tax of P16 billion for the January to September 2023 period, as well as total assets of P837 billion.

In an earlier statement, Megaworld said after the lockdown was lifted, Datem could not catch up with the completion of works for the projects contracted to them. It revealed that Datem failed to complete the construction of Eastwood Global Plaza, Uptown Parksuites 1 and 2, and other buildings which were eventually given to other contractors to finish. Despite their chronic failure to deliver, Megaworld stressed that Datem demanded huge amounts which the former described as unreasonable considering their bad, substandard and extremely poor performance as a contractor.

Holographic diplomacy

The recent event at the Singapore FinTech Festival 2023, where President Marcos delivered his keynote address as a hologram while he was in the US attending the APEC Economic Leaders’ Week, is a watershed moment in the intersection of technology and global leadership.

This innovative approach, which some may consider a strong signal of a coming holographic revolution, executed by UnionBank, UnionDigital and Tribal Worldwide Philippines, has not only marked a significant milestone for the Philippines but has also set a new precedent for global diplomacy and the fintech world.

By attending both events simultaneously, the President demonstrated the immense potential of cutting-edge technology to overcome geographical limitations and enhance global communication.

The successful execution of this holographic address in a mere seven days was attributed to the agility, creativity, and innovation inherent in the collaboration between UnionDigital Bank, CSJ Events and Tribal Worldwide Philippines. This achievement not only highlights the technical prowess of these organizations but also underscores the Philippines’ capability to deliver world-class technology-driven experiences, showcasing Filipino ingenuity and expertise in the global arena, broadening horizons in fintech and beyond.

If the Philippines was able to pull that off in only seven days, one can only imagine what a strong investment, long-term planning, full support from the public and private sector, with the Philippines’ top experts leading the way, can do for the entire nation in terms of innovation and digital transformation.

As we advance into an increasingly digital age, such pioneering endeavors will undoubtedly play a crucial role in shaping our global future.

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