Catanduanes Tribune

Minaabat project “grossly overpriced”:

Graft charges filed vs. DPWH director, contractor over Gigmoto road project
GROSSLY OVERPRICED with a price tag of P55 million, this 920-meter road opening project being implemented by DPWH regional office in Sicmil, Gigmoto, costs more than the standard P35 million per kilometer for a DPWH road concreting project. It is claimed that the elevated contract cost is due to bloated quantities particularly in Surplus Common Excavation, with the contours in the approved plan (right) not reflecting the actual conditions at the site (left). A project monitoring committee also noted the contractor’s use of broken concrete pavement in stone masonry and grouted riprap, instead of boulders as required in the contract specifications.

Four residents of Gigmoto have filed a complaint with the Ombudsman against the regional director of the Department of Public Works and Highways (DPWH) and a contractor over the allegedly overpriced P55 million Minaabat road project.

The complaint was reportedly filed with the Office of the Deputy Ombudsman for Luzon last September 2024 by Sicmil barangay councilor Allan T. Ubalde, former barangay captain Ereberto T. Olesco, and lot owners Maximo T. Tarrago and Rosalinda T. Velasco, against DPWH Director Virgilio C. Eduarte and Merlinda A. Rodriguez, president of E.R. Rodriguez Construction Corporation.

The duo has been charged with violation of Section 3 (g) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act, for entering, on behalf of the government, into any contract or transaction manifestly and grossly disadvantageous to the government.

They were likewise accused of violation of two provisions of the Implementing Rules and Regulations of Republic Act 9184 or the Government Procurement Reform Act.

A copy of the complaint which was showed to the Tribune stated that the project, intended to build a road from the national highway to Minaabat Point in Sicmil, was started on July 5, 2022 at an original cost of nearly P55 million based on the contract signed by RD Eduarte with ERR Construction Corp. in June 2022.

The project, involving the construction of a 920-meter gravel road and 2,309 sq. m. of slope protection, among other items of work, had a target completion date of February 15, 2023.

However, for various reasons, the project’s completion date was revised to August 7, 2023, January 15, 2024, and March 15, 2024, indicating that it was supposed to be completed by the time the Provincial Project Monitoring Committee (PPMC) made its inspection on May 17, 2024..

In fact, the committee report stated, DPWH engineers Lou Anne Panesa and Elijorge Manlangit signed a Project Accomplishment Report showing that the road project was already 91% completed as of Dec. 31, 2023.

The committee, however, discovered that the actual accomplishment in the same project as of May 2024 is only 64.5%, for a negative slippage of more than 15%.

The Ombudsman complaint likewise noted that even after the supposed expiration of the contract on March 15, 2024, ER Rodriguez Construction Corp. continued work on a revised route even in the absence of a duly approved Contract Time Extension and Variation Order, in violation of Section 3, Annex E of Republic Act 9184 or the Government Procurement Reform Act.

It stated that the Stone Masonry and Grouted Riprap of the project are substandard as the contractor utilized cracked portions of concrete from reblocking projects instead of boulders, which the complainants said is a violation of the DPWH Manual.

The actual slope of the side cut is between 70 to 80 degrees, which is not in accordance with submitted plans and specifications which requires a slope of 45 degrees, it added.

The complaint also underscored that the submitted plan’s profile, especially the cut-and-fill sections, are not realistic and do not seem to reflect actual topography as indicated by the finished cut sections.

“They cannot even show or provide Geo-tagged photographs on the same locations taken Before, On-Going and After the Activity for Surplus Common Excavation,” it stressed.

The “irregular and unrealistic” cross sections resulted in the very high quantities of the bloated item, which is grossly disadvantageous to the government and guaranteed to favor the contractor, the complainants said.

“It is clear that the design of the road is not in accordance with DPWH standards, particularly on value engineering,” it emphasized, concluding that the P 55-million project, which calls for a 920-meter gravel road, is grossly overpriced compared to the cost of paving a 6.7-wide and 280-mm thick national road at only P35 million per kilometer.

Aside from the contract and inspection reports, the complainants also submitted as evidence the privilege speech of PBM Josevan Balidoy denouncing the anomalous project and a subsequent Tribune article on the issue.

The complaint called for the immediate preventive suspension of Dir. Eduarte to prevent the collection of any amount in said contract by the contractor and his eventual dismissal from the service.

It also asked the Ombudsman to hold Rodriguez criminally liable and to declare the contract void ab initio.

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