Six GSIS execs face raps for Iloilo project

Ombudsman Merceditas Gutierrez yesterday ordered the filing of graft charges against six officials of the Government Service Insurance System (GSIS) that were involved in the alleged anomalous awarding of the contract for the construction of the GSIS building in Iloilo City in 2003.

In a 12-page resolution, Gutierrez ordered the filing of charges before the Sandigan­bayan for Violation of Section 3 (e) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act) against Rudy Tesoro, GSIS senior vice-president; Jesusa Ruby Teruel, Catherine Portia Corteza, Adelaida Jamantoc, Jose Ma. Capalla, and Lita Sonalan, all members of the Bids and Awards Committee (BAC).

The GSIS public relations staff said, in a telephone interview with The STAR, that GSIS president and general manager Winston Garcia initiated the filing of a complaint against Tesoro and the other GSIS officials.

The case stemmed from the complaint filed by the GSIS against the six officials, for awarding the contract for the construction of the GSIS-Iloilo City Field Office (GSIS-ICFO) to the highest bidding contractor, instead of the lowest bidder.

The GSIS report disclosed that on Nov. 4, 2003, the contract was awarded to Embrocal Builders, Inc., the contractor that presented the highest bid of P55,350,000 instead to H.S. Oaminal Construction that submitted the lowest bid of P51,307,146.30.

The report also stated that H.S. Oaminal Construction was disqualified outright on the ground that “its bid was below the floor for bid of lower limit to the amount of the award not-with-standing the explicit prohibition under Republic Act No. 9184 (Government Procurement Reform Act).”

In their counter-affidavits, Sonalan, Jamantoc, Teruel, Corteza and Capalla claimed RA 9184 and Executive Order No. 40 (Consolidating Procurement Rules and Procedures for all National Government Agencies, Government-Owned or-Controlled Corporations and Government Financial Institutions, and Requiring the Use of the Government Electronic Procurement System) “are not applicable in this case since the Implementing Rules and Regulations of the former was issued only after the posting of the invitation while the latter covers only civil works.”

Tesoro denied the allegations against him and claimed that he entered into a contract with Embrocal Builders upon the recommendation of the BAC.

“This Office finds sufficient ground to engender a well-founded belief that the acts prohibited under Sec.3 (e) of RA 3019 have been committed in this case,” Gutierrez said.

Gutierrez said in the resolution that “an undue injury was caused to the GSIS because it was obliged and made to pay an additional contract price of P4,042,853.70” when the respondents awarded the contract to Embrocal Builders, Inc., the highest bidder.

The Ombudsman noted that instead of awarding the contract to H.S. Oaminal Construction, the lowest bidder, the members of the BAC have disqualified the said company outright.

The Office of the Ombudsman also said Tesoro’s justification, claiming that he cannot reverse the recommendation of the BAC, is flawed because he is authorized to disapprove BAC’s recommendation for valid reasons.