Council surprised: Rama signs BRT road contract sans funds, OK

CEBU, Philippines - The Cebu City Council learned that Mayor Michael Rama already signed a contract with a private contractor for the P50.4- million construction of a road for the Bus Rapid Transit at the South Road Properties (SRP) even without authority.

In yesterday’s executive session of the Cebu City Council, the city legislators were surprised to know that Rama already signed a contract with Engr. Bernabe Gelbor, owner of Supreme ABF Construction, for the Clearing and Embankment project.

City Engineer Kenneth Carmelita Enriquez explained that the P50,562,000 transaction involves the construction of a 2.2-kilometer road and embankment project that will be completed within 222 calendar days.

Gelbor, declared by the Bids and Awards Committee (BAC) as the lowest bidder, announced that he was already issued a Notice to Proceed, although he has not started yet.

The admission of Gelbor that the City Hall issued him a notice to proceed surprised the council because BAC Chairman Rafael Christopher Yap earlier said he did not know if the city gave the go signal for the lowest bidder to proceed with the project.

Section 455 of Republic Act 7160 or the Local Government Code allows the mayor to represents the city in all its business transactions and sign in its behalf all bonds, contracts, and obligations, and such other documents “upon authority of the Sanguniang Panlungsod or pursuant to law or ordinance.”

Councilor Margarita “Margot” Osmeña, whose husband Tomas R. Osmeña is Rama’s rival for the mayoral race this May, said Rama’s signing of a contract without the City Council’s approval is highly questionable.

Osmeña cited the Supreme Court ruling in the case of Gabriel Luis Quisumbing et al. vs. Gwendolyn Garcia that Rama and his subordinate executive officials should first coordinate with the City Council if they want to implement projects that will be charged against the lump sum budget even if such appropriation has been approved already in the annual budget.

But City Administrator Jose Marie Poblete defended the mayor by saying that there is no need for the council’s approval because the City Council already approved the itemized project for the SRP’s P100 million lump sum budget in 2012.

For her part, Councilor Osmeña explained that the City Council, having approved the Appropriation Ordinance, has moral function to oversee if such is being complied in accordance with what was passed and authorized.

Councilor Osmeña also questioned BAC’s insistence to conduct the bidding even without the signature of City Treasurer Emma Villarete for the availability of funds for the project.

It was Nenita Fernandez, executive assistant of the Office of the Mayor, who certified on behalf of Villarete the availability of the needed funds, which Osmeña said maybe highly questionable because Fernandez has no authority to do so.

The legislators also found documents showing that while the bidding was conducted on March 25 or four days before the start of the election ban on the implementation of projects, the contract was signed by the mayor and the contractor the following day.

The contractor asked the city officials to issue him a suspension order because he will not insist on starting the project without the ratification of the contract at the City Council. — /JPM (FREEMAN)