Rama Enters P50.4M Contract for BRT Without Authority from City Council

City Administrator Poblete explains no need for authority since City Council approved the Project last year

The Cebu City Council has discovered that Mayor Michael Rama had signed a contract with a private contractor for the P50.4 million infrastructure project for the 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 had already signed the contract together 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 not later than 222 calendar days from the day when it will commence.

Gelbor, who has been declared by the Bids and Awards Committee as the lowest bidder for the project, announced that he has been issued already with a Notice to Proceed, although he has not started yet the project.

The admission of Gelbor that the City Hall had issued him already with a notice to proceed with the project surprised the city legislators because BAC Chairman Rafael Christopher Yap earlier said he did not know yet if the city had issued the lowest bidder the green signal to proceed with the project.

Section 455 of Republic Act 7160 or the Local Government Code allows the mayor to represent 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 close opponent for mayor in the upcoming May 13 Automated National and Local Elections, said what Rama did when he signed contract without the City Council’s approval was 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 quickly 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 has been duly passed and authorized.

Councilor Osmeña also questioned because the BAC insisted 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 for the availability of the needed funds, which Osmeña said maybe highly questionable because Fernandez has no authority to do it.

The city legislators also raised their eyebrows because the documents showed that while the bidding was conducted on March 25 or four days before the start of the election ban on the implementation of projects, but the contract was also 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 to start the project without the ratification of the contract at the City Council.