Contractor got P1.9M scrap from demolished city hospital

CEBU, Philippines - A Manila-based contractor got the P1.9 million worth of scrap metal from the demolished Cebu City Medical Center as payment.

This was admitted yesterday by city engineer Jose Marie Poblete during an executive session called by the members of the City Council. 

Poblete said this is a “normal” practice in the construction industry. He clarified that the amount was not even enough to compensate the contractor’s expenses in the demolition of the old structure because it allegedly spent P7.7 million.

The council summoned Poblete to an executive session to shed light on the allegation of a local newspaper columnist, who refused to appear in the council as he cannot divulge the source, that a city official received P2.5 million from the contractor for the scrap metals.

A report of Dan Jimenez, general manager of JLB Construction, to the Department of Engineering and Public Works, shows that the debris cost P1,862,040. It includes deformed bars, window grills, and light reco-very materials such as plywood, woods, galvanized iron sheets, among others.

 The total recovered scraps weighing 114,200 kilograms have P13.50 metal value per kilogram totaling to P1.54 million. Meanwhile, the light materials (assorted plywood and scrap woods) recovered totaled to P320,340.

 The granite tiles were utilized by the city engineering office while the air-conditioning units, glass windows, dividers, ply boards, among other scrap materials were recovered by the CCMC.

The city was able to retrieve P13.38 million worth of items including generator sets, electrical wires, and breakers, thread mill, aluminum water tank, compressor with motor, and tiles worth P9,000,641 from the demolished hospital.

 These have been placed under the custody of CCMC and DEPW, based on the report submitted by the CCMC ad hoc committee to Mayor Michael Rama in April. The demolition started on February 24 and was completed on April 2, a few months after the magnitude 7.2 earthquake in 2013 ruined the city hospital.

 Lawyer Rey Chris Panugaling of CCMC informed the council that some recovered materials were used to construct a makeshift hospital at the back of the Bureau of Fire Protection building, where the hospital currently operates.

 Also, other scrap materials are used in the construction of outpatient department, pedia ward, dietary office, and blenderized feeding area, pharmacy section, disposal area, animal bite treatment center room, oxygen stock area, housekeeping office, among others.

 Other items including medical and computer equipment and furniture worth P4,380,530.30 have also been turned over to the General Service Office for safekeeping and disposal.

 The 3,960 cubic meters of debris from the demolished medical facility were dumped by DEPW in two sites along the road leading to the Tent City at the South Road Properties and at Pond A.

Poblete said the reco-very cost is way below the P7,659,518 incurred by the contractor to complete the demolition works at no cost to the city.

The P7.7 million covers the tools and equipment, manpower and other miscellaneous materials needed to complete the demolition works including hauling and disposal of debris and waste materials.

Poblete said the CCMC ad hoc committee tapped the contactor through a public private partnership.

He said the contractor, which had a project in Lahug, offered help disregarding profit. He stressed that the scraps have no “salvage value or zero value.”

 “Ang scrap metals ‘ultimate stress’ na bali gagmay and nagkunot-kunot ang kabilya and dili na mapuslan and wa’ na’y value,” he said.

 Councilor James Cuenco said the city has to thank the contractor for undertaking the demolition and not to “harass” them.

 “We can’t disregard the benevolence of the contractor.  Remember that what was recovered was below the recovery cost. Let’s not harass the contractor and let’s put an end to this issue,” he said.

 The council has asked the guidelines from the Commission on Audit on how to dispose of the properties after demolition. It is also asking the executive department whether a formal agreement was signed between the city and the contractor.  (FREEMAN)