Deny Young Builders’ move: City to CIAC

The Cebu City Government is asking the Construction Industry Arbitration Commission (CIAC) to deny the move of Young Builders Corp. (YBC) to collect P61.2 million for the reconstruction of Unit 2 of Carbon Public Market.

In the comment and opposition that the City Legal Office filed before CIAC, City Hall lawyer Ferdinand Cañete said two requisites are needed before YBC can collect from the City.

Cañete said that prior to the disbursement of public funds, an approved appropriation is needed.

And even with a final and executory judgment validating a money claim against the government, its filing with the Commission on Audit is an important condition before payment can be effected, he added.

Cañete invoked the landmark case of Rallos vs. the City of Cebu, where the Supreme Court ruled that the two requisites should be complied with first.

In YBC’s case, no appropriation ordinance has been passed by the City Council or approved by the mayor yet.

“And considering that claim- ant Young Builders Corp. has utterly and clearly failed to comply with the foregoing requirements, set by no less than the Supreme Court, the instant motion for the issuance of a writ of execution should ultimately be denied by this Honorable Commission,” a portion of the comment and opposition filed by the City read.

Under the Local Government Code, no money should be paid out of any public treasury or depository except in pursuance of an appropriation law.

Earlier, YBC, through its counsel, filed a motion for the issuance of a writ of execution to collect P61.2 million from the City.

However, the Court of Appeals (CA) had rendered a decision partially granting the petition of YBC, but only directed the City to pay P10.1 million.

Of the amount, P6.3 million represents the balance of approved accomplishment and P3.8 million is for the interest.

The CA excluded the P50.6-million claim of the contractor because it was not included in the contract.