JVR sued for hiring sans bidding

CEBU, Philippines - Talisay City Mayor Johny De los Reyes and three others are facing charges before the Office of the Ombudsman-Visayas for hiring 91 security guards from Black Pearl Security Agency (BSA) without competitive bidding.

Vicente Cabrera Jr., a resident of San Isidro Street Tabunok, Talisay City, Cebu, filed cases for alleged violation of Republic Act  6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees, RA 3019 or the Anti-graft and Corrupt Practices Act, and RA 9184 or the Government Procurement Reform Act.

"During the hiring of the services of 91 security guards of BSA as job order employees from August 1 to December 31, 2013, there was no competitive bidding in violation of Section 10, Rule 1V of the Implementing Rules and Regulations of RA 9184, thus prejudicing the interest of the government," Cabrera's affidavit reads.

The other respondents are Bids and Awards Committee (BAC) chairman and city administrator John Yre de los Reyes, city treasurer Emma Macuto, and budget officer Edgar Mabunay. The president of BSA, Baltaire Balangauan, was also included in the complaints.

Cabrera's lawyer, Rene Abcede, Jr., said the respondents allegedly conspired with each other in hiring the services of 91 BSA security guards as job order employees instead of hiring their services directly, which allegedly gave undue advantage to the security agency.

Each security guard reportedly received P430 per day from August 1 to December 31, 2013, which was allegedly "highly irregular" because the other job order employees only received P300 per day.

Abcede cited a Commission on Audit report, which says that from August 1 to December 31, 2013, the Talisay City government paid BSA P5,972,510.

"Based on the said COA report, out of P430 daily wage, security guards is paid only P300 per day and the remaining balance of P130 goes to BSA. Unfortunately, BSA failed to provide the guards with SSS, Pag-IBIG or PhilHealth premiums, which is disadvantageous to the guards," Cabrera stated.

In the same report, the city government could have saved P1,822,910 if it hired the services of the security guards directly as city paid job order employees instead of contracting their services through BSA.

The report says further that there was "no contract of service entered into by and between the city and BSA as to the extent of its obligations and liabilities in case of loss or damage to BSA's properties."

COA said Blackpearl guards had admitted getting only P300 per day and the remaining P130 of the supposed salary went to their agency. COA said the city could have saved P1,822,910 had it not involved the security agency.

In the COA report, the agency found out that there was no contract of service entered into between the city and Blackpearl prescribing who shall be held liable in case of loss or damage to the security agency's property, which are in custody of the guards.

Cabrera said hiring the 91 security guards for the questioned time period - August 1 to December 31, 2013 - through BSA allegedly did not have the approval of the Talisay City Council and that BSA's permit or license to operate was granted only on Nov. 25, 2013.

In an interview, De los Reyes and his son, John Yre, said they will face the charges filed against them.

 John Yre expressed optimism that he and his father, as well as other members of BAC, will be cleared of any liability.

Mabunay had said the arrangement was not disadvantageous to the city government as the P430 daily wage of the security guards covered their uniform allowance and equipment. He added that the scheme allowed the city to save funds because it would have been more costly to contact the services of the security agency.

Blackpearl is the same security agency contacted by the Cebu provincial government.

For his part, the mayor said the guards were hired under City Hall's Adopt-a-Talisaynon program, which aims to provide employment to residents in the city.

He said the city hired the guards because the contract with the previous security agency ended on July 2013. /JMO (FREEMAN)