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THE Cebu City government will file a civil suit against a contractor for backing out of the construction of the Unit 2 Carbon market ramp in order to recover its P20.1 million advance payment.
Cebu City Mayor Tomas Osmeña said he agreed with the Commission on Audit (COA) findings that required WT Construction to refund the amount to the city.
The contractor got the bulk of the P24 million advance given to several contractors for the ramp project.
“We should get it back. I gave instructions to pursue the collection of these advance payments,” Osmeña told .
The company owner, Willy Te. previously told the mayor that they cannot undertake the project due to the rising cost of construction materials.
Osmeña said the Cebu City Legal Office was instructed to file civil cases against contractors who failed to refund the city for aborted projects.
The P24 million forms part of the P135 million Carbon market development project.
Te reportedly asked the city government to increase the contract price for the ramp project due to the higher cost of materials.
However Osmeña said the city couldn't afford to increase the contract price.
He said WT Construction is the same contractor that allegedly used scrap iron for the construction of the Cebu International Convention Center (CICC).
The mayor said he will ask the Department of Public Works and Highways (DPWH) to include them in the blacklisted contractors banned from bidding for government projects.
Osmeña previously distributed copies to local media of an inventory of scrap materials donated by a private company to the DPWH which the agency allegedly sold to WT construction without proper bidding.
“There has to be an investigation that should be done on this matter,” Osmeña said.
However the mayor said he is willing to consider negotiating with WT Construction on the terms of refunds.
However the mayor said they should file the civil case against WT Construction to compel them to refund the P20.1 million to the city. /Reporter Marian Z. Codilla
