COA to MMDA: Take back P10.5-million advance on project

MANILA, Philippines - The Metro Manila Development Authority (MMDA) should take legal action against a construction firm for failing to return over P10.5 million it advanced to the company in 2003 for a terminal project that did not push through, the Commission on Audit (COA) said in a report.

The COA said ITP Construction Inc.’s failure to refund the amount over the past eight years resulted in wastage of government resources.

Citing provisions on advance payments in the government procurement law, Republic Act 9184, state auditors said the MMDA should “institute appropriate legal action against the contractor.”

The COA said P10.5 million, representing 15 percent of the P70-million contract for the construction of the North Transport Terminal, was advanced to ITP. As required by regulation, the contractor posted a surety bond amounting to P10.5 million with Stronghold Insurance Company to cover the advance payment.

State auditors said a Notice to Proceed was approved and the MMDA issued the advance payment. However, that same year, a Quezon City court issued a cease and desist order preventing the construction firm from proceeding with the construction of the terminal.

“From then on and until today, the project remained unimplemented and the advance payment made had not been recovered from the contractor. The advance payment of P10,522,582.00 if not immediately collected, could mean losses in the coffers of the MMDA,” the COA report stated.

The North Transport Terminal is a component of the Greater Metro Area-Mass Transport System, a project in which the government sought to build a common terminal for provincial buses from the northern provinces in Quezon City.

However, the project failed to push through, allegedly after government agencies whose offices stood right in the path of the proposed project refused to move out. Former MMDA chairman Bayani Fernando identified the government buildings as the Department of Public Works and Highways, National Printing Office, and National Irrigation Administration, which are all located at the northbound portion of EDSA between East and North Avenues.

MMDA traffic discipline office chief Yves Gonzalez said only MMDA chairman Francis Tolentino can comment on the matter.– With Aie Balagtas See