Release of P3 M to ‘overpriced’ lampposts’ contractors halted

Ombudsman Merceditas Gutierrez issued a cease-and-desist order yesterday preventing the Department of Budget and Management (DBM) from releasing more than P3 million to the suppliers of the allegedly overpriced decorative lampposts used during the recent Association of Southeast Asian Nations Summit in Cebu.

This developed as President Arroyo ordered Presidential Anti-Graft Commission (PAGC) chairwoman Constancio de Guzman to investigate officials who may be involved in the alleged overpricing.

In a two-page order, Gutierrez restrained the DBM from releasing any amount to Fabmik Construction and Equipment Co. and Gampik Construction and Development Inc. while the alleged overpricing is still being investigated.

The Ombudsman-Visayas is also conducting a fact-finding investigation into allegations that the decorative lampposts and other street lighting facilities installed during the ASEAN Summit in Cebu last Jan. 10-17 were overpriced.

Gutierrez directed Deputy Ombudsman for the Visayas Virginia Santiago to submit a report on the progress of the fact-finding investigation.

Santiago said they have been holding marathon conferences on the complaint and have gathered documents and met with officials of the DBM, Bureau of Customs, and Department of Public Works and Highways.

In a meeting with DBM officials, the Ombudsman was informed that the remaining amount of P3,141,388.37 representing the "retention money" for the project’s first phase was to be released to the two contractors. – With Paolo Romero