Author Topic: REPLY TO THE ISSUE: BACKHOE OVERPRICE YARN TO BOOST CAJES CANDIDACY (Read 607 times)

arki · « **on:** April 26, 2010, 10:06:13 AM »

BACKHOE OVERPRICE YARN TO BOOST CAJES CANDIDACY

Gov. Erico B. aumentado dismissed allegations of overpricing in the provincial government's purchase of a backhoe to be "mere ploy" of Bohol's 2nd District Rep. Roberto Cajes to prop up the sagging candidacy of his wife, Trinidad Mayor Judith del Rosario-Cajes.

Contrary to the observation of his political opponents, Aumentado said the provincial government actually saved about P4.8 million in the competitive bidding for the heavy equipment that cost P163 million only compared to the P167 million allocation.

"Regarding the backhoe, the transaction happened four years ago. If it is true that there was an over price, then why is there is no Notice of Disallowance from the Commission of audit? There is even no audit observation memorandum," he said.

"I never said I will return any amount resulting from the transaction," the governor said, adding that the solon should confuse the act of Civic merchandising - the winning bidder - when it provided medicines and foodstuffs as part of its corporate social responsibility.

The issue of alleged overprice when the provincial government bought a volvo model EC210BLC hydraulic excavator with breaker or backhoe worth P9.4 million had long been explained and settled. Republic Act 9184, the new procurement law, allows a public bidding even if there is only one bidder.

POLITICAL CONSUMPTION

These allegations are purely for political consumption. As correctly concluded by the media, this is in retaliation to the case filed against the Cajeses by Allan Manching of Barangay Guinobatan, Trinidad town. They have mistakenly attributed to me the filing of the case," he said.

Manching was allegedly persecuted by Cajes in Trinidad so that the latter retaliated by filing the anti-graft charges against the congressman with the Ombudsman. Manching is reportedly one of 19 Trinidad residents allegedly harassed and persecuted in court by Cajes for standing in his way on some issues and concerns in the town.

Observers note that the Cajes complaint is a "countercharge" that, within legal circles, is generally viewed with suspicion and dubious motives.

Cajes, a former political ally of Governor Aumentado, had waited for four years before filing the complaint - a poor excuse now that his wife is also running for a congressional seat in 2nd District against the governor who is serving his last term.

Aumentado said the charges of alleged wrongdoings filed against him during the election period in the past by his political opponents have all been dismissed. He foresees that he and the members of the Bids and Awards Committee (BAC) then will be cleared of the charges in due time.

SETTLED ISSUE

As early as 2006, lawyer Handel Lagunay who chaired the BAC at that time already explained that the purchase of the backhoe was aboveboard.

He said the allegation of over price was based on an erroneous comparison of prices between a Volvo backhoe with lower specification worth P6.2 million and the backhoe with higher specifications plus a hydraulic breaker and bigger bucket size worth P9.4 million ordered by the provincial government.

The latter exercised due diligence when it canvassed from three suppliers before publishing the notice to bidders and fixing the approved budget of the contract (ABC) at P9,493,469 - based on Provincial Ordinance 2005-022.

Lagunay also explained that basing the purchase price on foreign currency, preferably the US dollar at its applicable exchange rate is the norm when an equipment is to be shipped from abroad. Opening of a letter of credit is essentially a bank-to-bank transaction.

NO BASIS FOR COMPARISON

The other price quotation allegedly from Civic Merchandising that was used as the basis for the accusation does not prove that the Volvo hydraulic excavator with breaker is over priced because the unit turned out to have no hydraulic breaker but only a piping kit.

Its cabin equipment is the ordinary "seal type"-good for work along highways and other stable terrain. But the provincial government-procured excavator has a roll-over protection system (ROPS) designed to protect the life of the operator in case it roll over, especially since it will be used in rugged terrain-maintaining and developing provincial roads.

Meanwhile, the bucket for excavation is only 0.92 cubic meter while that of the unit procured by the provincial government is much bigger and wider at a 1.22 cubic meters.

Besides, the price of P6.2 million is good only if the place of delivery is Manila. In the instant case, the excavator and the breaker to be delivered further to Tagbilaran City from Manila entailed additional cost to include their corresponding marine insurance.

A Volvo hydraulic breaker cost P1.5 million and not P1 million only. Besides, the Volvo excavator procured by the province installed with a cabin with the ROPS and a bigger bucket would surely cost more that a Volvo excavator of the same basic model but installed only with an ordinary seal type cabin and smaller bucket.

On top of it all, the margin of profit and the cost of money allowable add-ons in accordance with government auditing regulations and should therefore be factored in into the total price.

LETTER OF CREDIT

Lagunay also explained that the letter of credit was for P9.7 million instead of only P9.4 million due to the negotiation and other charges imposed by the Philippine National Bank-all reimbursed by the winning bidder. The prevailing exchange rate at the time the LC was opened already stood at P52.50 to the US dollar such that with the principal LC amount of P9,649,500 plus negotiation charges of P35,000 and other charges of P39,498.15, the total amount is P9,723,998.15.

Aside from Aumentado and Lagunay, also named respondents in the case Cajes filed are Provincial Engineer Edwin Vallejos as BAC vice chair, and Laura Boloyos and Felix Mejorada as regular members.

But Vallejos said he is confident that the case will be dismissed as everything the committee did was aboveboard.

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Author Topic: REPLY TO THE ISSUE: BACKHOE OVERPRICE YARN TO BOOST CAJES CANDIDACY (Read 607 times)

arki

REPLY TO THE ISSUE: BACKHOE OVERPRICE YARN TO BOOST CAJES CANDIDACY