Abandoned Iloilo
City Housing Project: Lost battle vs. corruption?
By FLORENCE F. HIBIONADA /
PNS
August 10, 2012
ILOILO CITY – Nine years in
the Office of the Ombudsman. 10 years in the Commission on Audit (COA).
P87.3M in wasted taxpayers’ money. Three different city mayors and
three City Councils. A visible sorry sight along a main highway to and
from the Iloilo Airport. A daily reminder of what an unfinished and
abandoned government project is.
What has since happened to
Iloilo City Government’s housing project? Where are the key figures
involved? Has anybody been made to pay for the validated reports of
massive irregularities that led to the project’s demise? Will justice
ever be served to the Ilonggo taxpaying public? Will justice be served
to numerous COA reports calling to salvage whatever is left of the
project? Is there justice to years pored in by Ombudsman investigators
who found probable cause to indict top Iloilo City officials?
COA, the Philippines’
supreme audit institution has since dubbed the project “an investment
failure.” Conceptualized in November of 1999, vigorously pursued in
2000, implemented in 2001 and abandoned in 2002, total government
money spent was P87,364,819.21. The amount, COA validated, was used as
payment for the project’s contract cost of P62,599.557.69 and loan
interests of P24,765,261.52.
Incidentally, the botched
housing project was initially funded out of the city’s bond flotation
scheme as pushed by a group of financial advisors hired by the Iloilo
City Government. That was the time and administration of former Mayor
Mansueto Malabor with housing project cost pegged at P125,304,356.65.
When his successor, former
Mayor now Lone District Congressman Jerry Treñas took over, project
cost was revised to P137,787,499.56. The bond flotation was also
scrapped and funds sourced through a 5-year loan with the Philippine
Veterans Bank (PVB).
Original loan with PVB was
P130 Million yet by end of December 2002, only P80,399,000.00 was
actually released to the City Government, fully paid in 2007 with
interests of a little over P24.7 Million.
Of the said P80.3 Million,
P50.3 Million was directly paid to Philippine National Bank (PNB)
Trust Banking Group to partially redeem the bonds issued by the City.
Yet what really happened at
the start, during and after the project? Documents secured through the
years reconstructed an ugly picture of local government and governance
at its worst. In fact, the Office of the Ombudsman in resolving the
cases as filed had this to say: “The amount involved in the ICHP which
is a whooping...(P125,000,000) surely could not escape the attention
of a well-meaning citizen, whether or not he or she is a beneficiary
thereof,” excerpts of the 110-page Consolidated Resolution stated.
“Today, as the records of the case will show, the project site is a
virtual ghost town. And there is no semblance of interest among the
officials concerned of Iloilo City to salvage what is left of the
project nor is there any effort to compel the contractor to perform
its part in the contract.”
Background
The project was called
“Iloilo City Employees Housing Project” (ICEHP) that would have been
home to 413 City Hall worker-recipients. Total land area for
development was 56,669 square meters with the area for socialized
housing covering 9,890 square meters.
The city lots are covered by
Lot No. 293-A and Lot No. 293-B-TCT No. T-36832 at Barangay Ungca I in
Pavia, Iloilo.
Signs of trouble happened at
the earliest months of the project’s conception as it surrounded the
City’s hiring of financial advisors, the bright minds of Preferred
Ventures Corporation (PVC). Irregularities too in the earliest housing
project activities of the Pre-Bids and Awards Committee (PBAC).
For instance, the “Design
and Construct” scheme pushed for the project. It divided the PBAC with
objections posed on the scheme as being disadvantageous proving now to
be prophetic. The City Council of 2003 through its Committee on Good
Government heard testimonies and gathered documents that virtually
proved how “Design and Construct” was pushed – at all costs. Never
mind that it was also beyond PBAC’s mandate to come up with such
decision.