Questions raised on finances of top bidder for Capitol lot

Questions have been raised on the qualifications of an international consortium that participated in a bid to develop a 2.8564-hectare Capitol property in barangay Banilad for commercial use on a Build-Transfer-Operate (BTO) scheme.

This came after it was learned that Philippine-Beijing Motors Corporation (PBMC), which was reported as the top bidder for the Banilad lot project, has applied for a financial rehabilitation plan, after having failed to pay its financial obligations with the Metropolitan Bank and Trust Company (Metrobank).

The consortium led by Philippine Beijing quoted the highest price in terms of net present value during the bidding held for the development of the property previously occupied by the Cebu International School and Cebu Tennis Club last Wednesday.

When sought for comment, Governor Gwendolyn Garcia, who also sits as the chairman of the Economic Enterprise Council (EEC), which conducted the bidding, said this latest development is something that is worth looking into.

She nevertheless pointed out that although the PBMC quoted the highest bid in terms of net present value for the development of the said Capitol-owned property, its technical and financial bids would still undergo post-qualification to determine whether it has passed all the requirements and conditions as specified in the bidding documents.

One of the documents submitted by PBMC last May 10 was an undertaking that that it came up with a certificate of commitment from a licensed bank that it is willing to extend to PBMC the amount of the cost of the project. Other requirements are a certificate of cash deposit and a bank guarantee.

The governor said it is only when the EEC shall have issued the notice of award to the winning bidder that the latter shall be obliged to issue any of the documents stated above two weeks thereafter.

During the pre-bidding conference, one of the representatives of the PBMC told the governor that their company is affiliated with the Bank of China.

The EEC is going to issue the notice of award seven days after the actual bidding or May 18.

The governor pointed out that "fairness and justice demands" that PBMC shall be accorded with the room to explain its side on the questions raised.

On the other hand, Provincial Planning and Development Officer and ECC head Engr. Adolfo Quiroga said he has yet to consult the governor as to the next scheduled meeting where all members of the ECC can sit down and scrutinize the bid of the PBMC for post-qualification.

At present, there is a petition for certiorari filed by the Metrobank against the Regional Trial Court's decision granting the application of PBMC and its two other affiliate corporations for financial rehabilitation plan and the appointment of rehabilitation receiver is now pending before the Court Appeals.

Respondents of the petition are RTC Branch 11 presiding Judge Isaias Dicdican and PBMC and two other affiliate corporations.

Lawyer Jonas Manuel, Metrobank legal officer, said told The Freeman in an interview that "being part of the government," they want the Capitol to know the qualifications of the bidders that participate in the bidding of government projects.

According to him, the financial capability of the company is one angle or aspect for it to qualify as a bidder.

He explained that the application of PBMC for financial rehabilitation is one indication that its assets are no longer stable.

Documents secured by The Freeman show that on September 11, 2002, PBMC and its affiliate corporations, Dino Industrial Corporation and Unicraft Industries International Corp., with offices at Labogon, Mandaue City filed a petition before RTC Branch 11 seeking for the approval of rehabilitation plan and appointment of a rehabilitation receiver.

On the same date, RTC Branch 11 presiding judge Isaias Dicdican issued an order finding the petition sufficient in form and substance, enforcement of all claims against the PBMC, DIC and UIIC, and directing all the creditors and interested parties to file with the court their verified comment or opposition to the petition.

Likewise, Dicdican appointed Mr. Pio Go as the rehabilitation receiver of the respondents.

On October 28, 2002, a day before the initial hearing, Metrobank filed its opposition/comment to PBMC's petition.

The bank explained that PBMC entered into valid loan obligations with the bank evidenced by promisory notes, the loans obtained by the petitioners are secured, hence foreclosure is a matter of right in the event of petitioner's default and PBMC have recognized the right of the bank to foreclose.

After the initial hearing and the conduct of cross examinations, presentation of evidence and witnesses, judge Dicdican issued an order on December 9, 2002, finding the PBMC's petition for approval of rehabilitation plan and the appointment of a receiver as being meritorious.

On January 14, 2003 the judge issued an order referring the private respondents' revised proposed financial rehabilitation for evaluation and comments to the court's appointed rehabilitation receiver.

Since a motion for reconsideration was prohibited under the Interim Rules of Procedure on Corporate Rehabilitation, Metrobank filed a petition for certiorari before the Court of Appeals.

Metrobank said that judge Dicdican acted with grave abuse of discretion amounting to lack or excess of jurisdiction when he granted the petition of PBMC on December 9, 2002.

During a bidding for the Banilad lot project last week, PBMC quoted P1.87 billion for the project, the highest in terms of net present value that two other local bidders.

Under the project proposal, PBMC offered to build a 21-storey hotel and commercial complex, which will house a car mall, hypermart, exhibit building, and museum. - Cristina C. Birondo and Wenna A. Berondo