Another charge against Bacolod City officials in connection with the construction of the government center of the city filed on April 2 by retired policeman Victor Eduardo and Sancho Nagar Sr., a former executive assistant of both former mayors Oscar Verdeflor and Luzviminda Valdez, for the release of P59 million paid by the city to Hilmarc's Construction Corp.

The charges for violation of the Anti Graft and Corrupt Practices Act and administrative charges for grave abuse of authority and grave misconduct were filed before the Ombudsman. The complainants said the case referred to what they called "misappropriation" of public funds by Mayor Evelio Leonardia, Vice Mayor Renecito Novero, Councilors Greg Gasataya, Dindo Ramos, Jocelle Batapa-Sigue, Jude Thaddeus Sayson, Homer Bais, Napoleon Cordova, Arturo Parreño and Marx Louie de la Rosa;

Acting City Treasurer Annabelle Badayos, acting City Accountant Eduardo Ravena, acting City Engineer Belly Aguillon, City Budget Officer Luzviminda Treyes and HCC president Efren Canlas.

The two claimed that the respondents gave unwarranted benefits and undue advantage to HCC.

They also filed a motion to amend their first complaint against the officials on the government center project to include other members of the Bids and Awards Committee.

Former Bacolod Councilor Archie Baribar said he believes the whole project will collapse because it has no approved funds. He said the basis of the project is the loan from the bank based on the contract.

City Legal Officer Allan Zamora, however, said the approved budget for the contract was deliberated upon by the Sangguniang Panlungsod. He said the stand of the SP and the BAC is that, when the SP ratified the loan agreement with LBP in the amount of P400 million for the construction of the project, that was an approved budget for the contract already. Zamora said the P59 million mobilization fund was supposed to be given by Land Bank of the Philippines. However, the group tried to sabotage the project by filing a civil case against the city officials to prevent LBP from releasing the loan, he said.

The case was eventually dismissed by the Court.

This was because the group knew that one of the provisions of the agreement between the city and LBP is that if a case is filed against the project, the bank can withhold the release of the loan proceeds, Zamora said.

If the city fails to pay the contractual obligation of P59 million to HCC, it will be sued, because, under the contract, it will pay HCC for the construction materials worth about P30 million delivered to the site and all its expenses, Zamora said. He also said the case will not be resolved within a period of 13 months during which the project is to be completed.

If this happens, the property worth P140 million will revert back to the donors, he added.

Zamora said the Mayor is determined to pursue the project, so the city paid the P59 million in advance. He said this is more advantageous to the city since it will mean a reduction of P59 million from the P400 million loan, and will mean savings in terms of interest. He also said he believes politics is involved in the case as the other group will do everything to stop the construction.

Baribar also claimed that the certification was made within the banning period so this is questionable.

Zamora said the banning period started on March 29 but the P59 million was passed by the Sangguniang Panlungsod long before that. He also said the budget for basic services had already been appropriated in the 2007 annual budget. The P59 million is from the unappropriated budget of the city and was sourced from its Internal Revenue Allotment and surplus of 2006, he added.

Meanwhile, Leonardia said the net amount due from the city to HCC is only P28 million, instead of the gross amount of P39 million for its second progress billing.*CGS

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