PB stalls purchase of heavy equipment

THE Cebu Provincial Board (PB) has deferred the resolution authorizing Gov. Hilario Davide III to sign the contract with ConEquip Philippines and RDAK Transport Equipment for the purchase of heavy equipment.

The PB believes a resolution must be approved first authorizing Davide to seek an extension of the Provincial Government’s loan with the Land Bank of the Philippines (LBP).

The Capitol’s loan, which will be used to pay for the purchase of the heavy equipment, will expire this month.

During their session yesterday, two resolutions were filed in the PB pertaining to the purchase of the equipment.

The first seeks to authorize Davide to sign the deal with ConEquip-RDAK, the winning bidder, while the other seeks to authorize the governor to enter into a loan agreement with the LBP.

PB Member Jude Sybico, who is the majority floor leader, referred the second resolution to the committee on budget and finance for review. It was approved.

However, the other PB members raised that before Davide be given the authority to sign

Legislators say there is a need to extend the Capitol’s loan application with the Land Bank of the Philippines before giving Gov. Hilario Davide III the authority to sign the contract with the winning bidders Loan application to expire this month

the loan agreement, the Capitol should seek a loan extension first with the bank.

When the glitch was noted, Vice Gov. Agnes Magpale called a recess.

When the session resumed, Sybico sought a reconsideration on his earlier motion. He amended the second resolution by authorizing Davide to seek an extension of the loan agreement first.

The PB approved Sybico’s motion for reconsideration. The resolution was then referred to the committee on finance for their study.

It was PB Member Horacio Franco who first drafted the resolution asking the PB to give Davide an authority to enter into a loan extension with the LBP.

However, Franco was recently suspended by the Office of the Ombudsman for two months without pay for simple misconduct and simple negligence.

“Franco is absent and can’t report for work. The one who took over hasn’t fully understood yet the matter surrounding the purchase of the heavy equipment,” said Magpale.

The vice governor then said it was Budget Officer Danilo Rodas who advised the PB members on the need to extend the loan with the LBP.

Bidding

“It was suggested to approve the extension first because it was a pre-requisite for bidding,” she said.

Once the extension of loan application will be approved, the PB members will tackle next the resolution authorizing the governor to sign the contract with ConEquip-RDAK.

The original cost for the purchase of the heavy equipment was set by Capitol at P252 million but ConEquip-RDAK submitted a bid price of P227.4 million.

Capitol intends to buy 15 heavy equipment for the construction of provincial roads and road maintenance by the Provincial Engineering Office.