Capitol won’t pay interest on CICC additional works

CEBU, Philippines – The Cebu provincial government insisted that it should not be made to pay the interest on a financial obligation that it has already paid for to a contractor of the Cebu International Convention Center.

Provincial legal officer Orvi Ortega maintained that the additional works on the CICC amounting to P257.4 million were done by WT Construction, Incorporated (WTCI) without public bidding and contract.

He added that the province’s contention will be expressed in a motion for reconsideration which they will file after receiving a copy of the Supreme Court’s decision.

As of yesterday, the Capitol did not receive yet a copy of the decision, Ortega said.

The Supreme Court earlier affirmed the Court of Appeal’s ruling that the Capitol has to pay the six percent per annum on its financial obligation to WTCI aside from the P257 million it paid to the contractor for the additional works on the CICC, including site development and additional structural, architectural, electrical, and plumbing works.

The SC also agreed with the lower courts’ decisions that the computation of the legal interest should reckon from the filing of the complaint on January 22, 2008.

The case was filed before the Regional Trial Court in 2008 after Cebu provincial government refused to pay WTCI.

The lower court found that there was a perfected oral contract between the parties for the additional works on CICC, thus, WTCI must be compensated; otherwise, the RTC said, the Capitol would be “unjustly enriched,” citing the doctrine of quantum meruit which determines the amount or value to be paid for works and services rendered in the absence of a contract.

Cebu Governor Hilario Davide III visited CICC yesterday morning and showed the media the current status and the dilapidated portion of the facility, which has left idled after suffering damage from the earthquake and supertyphoon Yolanda in 2013.

“Unya pabayron ‘ta ini?” he said.

He then compared the status of the CICC to the nearby buildings which did not obtain so much damage after being hit by the calamities.

“Tan-awa ang Parkmall wa man naunsa, ang CDU (Cebu Doctors University) wa man, kompara sa CICC. Nagpakita na ang kalidad sa trabaho,” he said.

He reiterated his stand that the province under his administration will not pay obligations for contracts entered into by previous administration without authority from the Provincial Board.

He, however, made it clear that the province will only accede if the court orders the Capitol to do so.

He also responded to his predecessor third district Representative Gwendolyn Garcia’s statement that the SC’s decision was a vindication and confirmation of her “long-held position” that there was nothing irregular or illegal in the construction of the CICC, saying that the decision did not cite Garcia’s absolution from any liability.

“Wa na-dicuss nga na-vendicated siya. Civil case pa man ‘ni, collection sa claim sa additional works… Misleading ning iyang mga statement ba, totally alien sa decision sa SC,” Davide said, noting that there are still pending administrative and criminal cases filed before the Office of the Ombudsman for alleged irregularities in the CICC’s construction involving Garcia.

He said he only read the decision from the website of the Supreme Court.

“This decision nearly affirms her lack of foresight, kakuwang sa pagtuon sa pagpatukod sa CICC. Nganong kinahanglan pa man og additional works, nganong wa man na-anticipate daan pagpatukod sa phase I and 2?” the governor added.

The CICC was built when Cebu Province was chosen in 2005 to host the 12th Association of Southeast Asian Nations (ASEAN) Summit. —/NSA (FREEMAN)