Guv to meet Phil-Beijing Motors to clarify firm's financial standing

The local Economic Enterprise Council headed by Governor Gwendolyn Garcia has called for a meeting with the officials of the Philippine-Beijing Motors Corporations and its three international partners for post-qualification of its bids and to answer questions surrounding its financial status as raised by a commercial bank.

But pending explanations from the representatives of the said international consortium and the completion of the bidding process conducted by EEC for the development of a 2.8564-hectare Capitol property in barangay Banilad for commercial use on a Build-Transfer-Operate scheme, the governor believes Metrobank legal officer Jonas Manuel "is in no position at this point to stake on whether or not our bidder is in fact financially capable."

She further said one of the things that EEC will look into is the fact that when PBMC participated in the Capitol bidding, it did not participate alone because it had three other foreign partners.

After the actual bidding conducted last May 10 at the Capitol Social Hall, PBMC and its Chinese-Malaysian-Singaporean firm-partners quoted the highest in terms of net present value in a bid to develop a provincial lot under a BTO scheme. It quoted P1.87 billion for the said undertaking.

Under the project proposal, PBMC offered to build a 21-story hotel and commercial complex, which will house a car mall, supermarket, exhibit building and a museum.

But 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 will 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 oath of undertaking that in the event that it shall be awarded the notice of contract, it will be able to submit either certification of cash deposit from a duly licensed commercial bank in the amount of the project cost, or bank guarantee on the same amount, or a certification from a licensed bank that it is willing to extend to the bidder in the amount of the project, or a combination of all three, the amount of which all adds up to the project cost.

Should the contract to develop the Banilad lot be given to PBMC, it has two weeks to submit to the EEC any or all of the stated documents, the governor said.

In the event that it fails to submit the said required documents, then Capitol will forfeit the bid security of PBMC and of its other partners worth P2.5 million in GSI bond in favor of the Province of Cebu that has 120-day validity period. Submission of such bid security is part of the technical bids submitted by each participating bidders last May 10.

Also, Capitol will revoke the notice of award that shall have been issued to PBMC and consider the bids of the next second highest bidder.

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.

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 of Appeals.

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

Manuel told The Freeman in an interview earlier 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.

He said 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.