Plunder Charge vs. Vicente Dongkoy Emano, et. al. Part 7

June 5, 2008

71. THAT because of the patently deliberate and intentional establishment of this ONE MONOPOLY of EMANO-PADAYON PILIPINO-UKC BUILDERS, INC. on all projects not just over P50 million each but ranging from P100 million to P400 million, the People of Cagayan de Oro and its City Government are now both suffering from a series of injuries that continues up to date both socially and financially from the respondents series of conspired acts while Emano-UKC Builders, Inc. and co-conspirators continue to rake in ill-gotten wealth and plunder the City’s Coffers;

EMANO-PADAYON PILIPINO-UKC

BUILDERS, INC

Flagship Projects

Among the

ILL-GOTTEN WEALTH plundered by the Emano-Padayon Pilipino-Ukc Builders, Inc. from the City’s Coffers

Among the

‘CONTINUING INJURIES’ now being suffered/burdened upon the Filipinos of

Cagayan de Oro City

and the entire Republic of the Philippines

1. West-Bound Terminal & Public Market

27.) The CONTRACT FOR PUBLIC WORKS of the Westbound Terminal & Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[5]

28.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.

29.) INCREASE IN MARKET VALUE of UKC Builders, Inc. land properties directly surrounding the Bulua Public Market.

30.) MORE PROFIT from expropriation of residential land properties surrounding the area.

1.) The people NOW pays/subsidizes around 85% to 90% of the total Land Bank loan for 15 years at 11% interest per annum or P38,132,503.97 OR P38 million in interest alone yearly OR a total of P572 million for the next 15 years as the project is practically a “white elephant” considering that only around 15% to 10% of the project is actually earning money due to:

(a.) high market stall rental rates,

(b.) inaccessibility to the public and

(c.) there are already EXISTING four (4) huge public markets Cogon, Carmen, Puerto and Agora and three (3) huge malls Limketkai, Ororama MegaCenter and Gaisano Mall and City, four (4) department stores Ororama Cogon Branch, Ororama Carmen Branch, Gaisano Cogon Branch and Carmen Carmen Branch and a mini-market at Bulua itself along the national highway adjacent to the Bulua over-pass.

2.)The land property, the public market, the PUJ Terminal, the PUB Terminal and the Administration Building are now registered as mortgaged to Land Bank of the Philippines as additional collaterals aside from the Deed of Assignment of the Internal Revenue Allotment (IRA) which is no longer sufficient for the granting of the P250 million loan for the construction of the 5th Kagay-anon Bridge, another EMANO-PADAYON PILIPINO-UKC Builders, Inc. project.

2. South Diversion Road & Bridge ( Taguanao-Balulang Bridge )

31.) The CONTRACT FOR PUBLIC WORKS of the South Diversion Road & Bridge ( Taguanao-Balulang Bridge )is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[6]

32.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.

33.) MORE PROFIT from expropriation of residential land properties surrounding the area.

3.) The People NOW pays for the Land Bank loan for 15 years at 12% interest OR P48,000,000.00 or P48 million per year in interest alone or P720,000,000 or P750 million in the next 15 years for a project that is practically considered as another “white elephant” because of its

(a) inaccessibility from the center of the city,

(b) circuitous route and

4.) Destruction of the priceless Cagayan de Oro archeological heritage – the Huluga Cave and Archeological Site;

3. Redevelopment of Carmen Public Market

34.) The 20-years Build-Operate-Transfer (BOT) CONTRACT for the Redevelopment of Carmen Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[7]

35.) The DEMOLISHED BUILDING MATERIALS before the implementation of the 20-year BOT project;

36.) The BUILDING/

STRUCTURE of the Carmen Public Market itself is now owned by the Emano-PaDayon Pilipino-UKC Builders, Inc. until the next 20-years;

37.) A TOTALLY RISK-FREE BOT CONTRACT PROVISION that the 80%-20% repayment scheme or revenue sharing scheme be based on PROJECTED RENTAL COLLECTION/ INCOME to be turned over by the City Government to EMANO-PADAYON PILIPINO-UKC Builders, Inc. and not on ACTUAL RENTAL COLLECTION/ INCOME serving as an INSURANCE OR CONSTANT SOURCE OF INCOME for Emano and his co-conspirators for the next 20 years;

38.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.

5.) The People of Cagayan de Oro and the City Government are the ones paying for any risk that the EMANO-PADAYON PILIPINO-UKC Builders, Inc. incur in this supposed BOT contract as it contains what the Commission on Audit (COA) as “unreasonable” provisions on the 80%-20% repayment scheme or revenue sharing approved and revised by the Emano-PaDayon Pilipino administration;

6.) In the COA Annual Audit Report 2006, the auditors reported that the City Government has shelled out P39 million for both the Carmen and Cogon Public Markets under the EMANO-PADAYO PILIPINO-UKC Builders, Inc. management. The COA described these BOT Contracts as “disadvantageous to the coffers of the City Government;

7.) Hundreds of vendors are now displaced and those who are left are paying stall rental rates that are set higher than the local malls and department stores per square meter in a daily basis as this is pursuant to the dictates of the EMANO-PADAYON PILIPINO- UKC Builders, Inc.;

4. Redevelopment of Cogon Public Market

39.) The 25-years Build-Operate-Transfer (BOT) CONTRACT for the Redevelopment of Cogon Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[8]

40.) The DEMOLISHED BUILDING MATERIALS before the implementation of the 25-year BOT project;

41.) The BUILDING/

STRUCTURE of the Cogon Public Market itself is now owned by the Emano-PaDayon Pilipino-UKC Builders, Inc. until the next 25-years;

42.) A TOTALLY RISK-FREE BOT CONTRACT PROVISION that the 80%-20% repayment scheme or revenue sharing scheme be based on PROJECTED RENTAL COLLECTION/ INCOME to be turned over by the City Government to EMANO-PADAYON PILIPINO-UKC Builders, Inc. and not on ACTUAL RENTAL COLLECTION/ INCOME serving as an INSURANCE OR CONSTANT SOURCE OF INCOME for Emano and his co-conspirators for the next 25 years;

17.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.

8.) The People of Cagayan de Oro and the City Government are the ones paying for any risk that the EMANO-PADAYON PILIPINO-UKC Builders, Inc. incur in this supposed BOT contract as it contains what the Commission on Audit (COA) as “unreasonable” provisions on the 80%-20% repayment scheme or revenue sharing approved and revised by the Emano-PaDayon Pilipino administration;

9.) In the COA Annual Audit Report 2006, the auditors reported that the City Government has shelled out P39 million for both the Carmen and Cogon Public Markets under the EMANO-PADAYO PILIPINO-UKC Builders, Inc. management. The COA described these BOT Contracts as “disadvantageous to the coffers of the City Government;

10.) Hundreds of vendors are now displaced and those who are left are paying stall rental rates that are set higher than the local malls and department stores per square meter in a daily basis as this is pursuant to the dictates of the EMANO-PADAYON PILIPINO- UKC Builders, Inc.;

11.) One of the respondents City Councilor Reynaldo Advincula established his own stalls on the third floor of the Cogon Public Market;

5. Kagay-an 5th Bridge

18.) The CONTRACT FOR PUBLIC WORKS of the South Diversion Road & Bridge ( Taguanao-Balulang Bridge )is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[9]

12.) The people NOW pays the Land Bank loan for 15 years at 12% interest per annum or P30,000,000.00OR P30 million in interest alone yearly OR a total of P 450,000,000 or P450 million for the next 15 years:

72. THAT as a result of this pattern of overt or criminal acts and the looting of the coffers of the City Government of Cagayan de Oro, the following almost P1 billion long-term liabilities with huge interests are now being rammed down the throats of the Filipino People of the Republic of the Philippines, specifically the People of Cagayan de Oro for the three anomalous flagship projects of the Emano Administration (See Annex M-2):

Creditor	UKC Builders, Inc. Project	Amount	Term of Loan (Period & Interest)
Land Bank of the Philippines	West-Bound Terminal and Public Market	P346,659,127.08	15 years at 11% interest
Land Bank of the Philippines	South Diversion Road and Bridge	P400,000,000.00	15 years at 12% interest
Land Bank of the Philippines	Kagay-an 5th Bridge	P250,000,000.00	15 years at 12% interest
TOTAL		P996,659,127.08

73. THAT as a result of this pattern of overt or criminal acts rendering of public service is now substantially affected and will continue to affect the People of Cagayan de Oro considering that the 2008 Budget for Debt Servicing alone has now amounted to a gargantuan 15% of the total 2008 Annual Budget Ordinance thus sacrificing the budget for Health, Nutrition & Population Control which is only at 12% of the entire 2008 Budget and now practically equal to the 2008 Budget for Social Security Services & Welfare also set at 15%.

74. THAT as a result of this pattern of overt or criminal acts of the two Build-Operate-Transfer (BOT) contracts for the P118 million Redevelopment of the Carmen Public Market and the P252 million Redevelopment of the Cogon Public Market has raised the stall rental fees for market vendors to virtually confiscatory levels resulting to either their immediate ouster from their old stalls depriving them of their only means of livelihood and thus affecting the vibrancy of the local economy while other market vendors who insist on staying have to sacrifice their CHILDREN’S EDUCATIONAL NEEDS and the latter and this city and country’s future as well among others.

75. THAT as a result of this pattern of overt or criminal acts of both BOT contracts for the Carmen and Cogon Public Market redevelopment projects, the City Government of Cagayan de Oro under the respondent Emano Administration will be repaying UKC Builders, Inc. an overwhelming total of P1,411,000,162.60 or P1.4 billion as discovered by the COA in their Annual Audit Report 2006 (See Annex Y-2). This despite how the total amount for both Carmen and Cogon Public Market redevelopment project is only a meager P370,494,007.00 or P371 million only or a difference of P1,040,506,154.99 or an incredibly unreasonable P1 BILLION PROFIT for UKC Builders, Inc.;

UKC Builders’ Project	80% Revenue Share of Proponent per Annum	Total Revenue Share after Full Payment
CARMEN Market (Ground Floor with the PUJ Terminal)	P12,436,408.48	P248,728,169.60
Cogon Market (Ground and Second Floor)	P46,490,879.72	P1,162,271,993.00
GRAND TOTAL	P58,927,288.20	P1,411,000,162.60

4. Redevelopment of Carmen Public Market	P118,006,529.81	UKC Builders, Inc.	Emano Administration
5. Redevelopment of Cogon Public Market	P252,487,477.20	UKC Builders, Inc.	Emano Administration
GRAND TOTAL	P370,494,007.00

Project	Project Actual Cost	Revenue Share after Full Payment	UKC Builders, Inc. PROFIT
Redevelopment of Carmen Public Market	P118,006,529.81	P248,728,169.60	P130,721,639.19
Redevelopment of Cogon Public Market	P252,487,477.20	P1,162,271,993.00	P909,784,515.80
GRAND TOTAL	P370,494,007.00	P1,411,000,162.60	P1,040,506,154.99