Barangay chief to face raps on daycare center

CEBU, Philippines - A Cebu City barangay captain will be facing charges for technical malversation of public funds in relation to the implementation of a project by E.M. Arante Construction.

Earlier, the Commission on Audit (COA) conducted an investigation following allegations that most of E.M. Arante’s infrastructure projects in 16 barangays were substandard. These undertakings got P156 million of the P200 million worth of infrastructure projects for the south district barangays that were appropriated by the Cebu City Government during the term of Rep. Tomas Osmeña as mayor

A reliable source who requested anonymity told The FREEMAN that COA already completed its investigation on one of the 16 barangays under probe.

The source showed to The FREEMAN a copy of the Audit Observation Memorandum (AOM) which found out that technical malversation of public funds was committed by one of the 16 barangays. The name of the barangay is withheld until their officials get an official copy of the report.

In the report, the barangay reportedly constructed a day care center in the amount of P3.6 million, which was funded out of the financial assistance from the City Government.

It was found that the project has not been implemented until now. The contract, however, already received 80 percent of the contract cost in the amount of P2.8 million.

The action committed by the barangay official is in violation of Section 338 of the Republic Act 7160 which provides that no money shall be paid on account of any contract under which no services have been rendered or goods delivered.

“It’s a criminal offense,” a source told The FREEMAN.   COA will recommend the filing of the appropriate charges against the barangay official. 

The FREEMAN sought an interview with COA state auditor Eva Cabrera but refused to comment.

Last year, COA already found some irregularities in the bidding process for the implementation of some of these projects.

For example, in one of the barangays, COA asked why E.M. Arante was not disqualified by the bids and awards committee (BAC) even if it was not able to put up a bidder’s bond.

Also, it was found that no competitive bidding was conducted in the implementation of the barangay infrastructure projects and the barangays failed to follow the bidding procedures defined in the implementing rules and regulations of RA 9184 or the Government Procurement Reform Act.

These include an advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification and awarding of contract.

E.M. Arante Construction was the contractor that won the bidding for 72 projects in 16 south district barangays amounting to some P156 million. (FREEMAN)