Plunder Charge vs. Emano, et. al. Part 6

February 20, 2010

60. THAT the P252 million Redevelopment Cogon Public Market BOT Agreement entered by respondents placed the City Government and its constituents at a gross disadvantage;

61. THAT In 2004, COA in its Annual Audit Report 2004 said to quote:

“5. The City General Services Office failed to completely and promptly submit to the Office of the Auditor the contracts for Build-Operate-Transfer Agreement for the Redevelopment of Carmen and Cogon Markets x x x contrary to COA Circular No. 76-34.”

“As of Dec. 31, 2004, the redeveloped Carmen Market is already operational while the REDEVELOPMENT OF COGON MARKET IS ALMOST DONE, but until this date the subject contracts were NOT YET SUBMITTED for review to the Office of the City Auditor.” (emphasis ours) (See ANNEX V-1)

62. THAT in 2005, COA in its Annual Audit Report 2005 under Finding No. 2 said the City Government only PARTIALLY complied with its request;

“Reasonableness of the REPAYMENT SCHEMES on the Build, Operate and Transfer (BOT) projects x x x could not be determined DUE TO THE ABSENCE OF COMPLETE DOCUMENTATIONS NECESSARY for the review of the total investment on the project and the absence of formula in the determination of the margin of profit.” (emphasis ours) (See Annex W-1)

COA found, similar to that of the Carmen Public Market BOT contract with UKC Builders, Inc., the City Government of Cagayan de Oro is also taking in so much risk. There were provisions in the 25-year Cogon Public Market BOT contract that the repayment scheme be as follows –

1) It will be the City Government who will collect the monthly rentals from the stall holders — regardless of whether the entire number of market stalls were rented out or not or that whether the stall holder paid rent that month or not — the City Government will still pay based on the PROJECTED 80% monthly rental and not on the ACTUAL 80% rental collection; and

2) The City Government will pay 2% every month should the City Government fail to turn over the 80% PROJECTED rental collections.

COA showed a table whereby it stated that the City Government has been paying the accumulated difference of (P3,728,022.84) or (P3.73 million) for the months of June 2005 to Nov. 2005 alone.

63. THAT still in the 2005 COA Annual Audit Report, COA under Finding No. 6 found out that:

“Demolished structures representing the two (2) Public Market structures and Slaughterhouse as a result of the implementation of its redevelopment through Build-Operate-Transfer (BOT) agreement with a total value of P20,640,262.09 or P21 million were not dropped from the book of accounts in accordance with the provisions of COA 92-386 or otherwise known as the Rules and Regulation on Supply and Property Management in the Local Government.” (See Annex X-1)

64. THAT under this COA Circular, Respondent Emano should have first filed an application for the disposal of any materials left after the fire gutted down the Carmen Public Market. COA said this would have then prompted the City Auditor to inspect and determine the whether the “subject property is with or without value.”;

65. THAT after the inspection, the committee on awards shall appraise the same and proceed with the disposal in the mode provided by COA 92-386. It will only be at this time that the Cogon Market building property should have been dropped from the Book of Accounts.

66. THAT in 2006, in the COA Annual Audit Report 2006, the COA found out that the respondent Emano and his co-conspirators have approved some amendments to the BOT contract it has with UKC Builders, Inc. yet the amendments were again found to be “DISADVANTAGEOUS TO THE CITY GOVERNMENT’S COFFERS.” To quote:

“The amendment from facility usage fee stated in the original contract to revenue sharing of 80% to 20% of the gross monthly income or projected revenue is disadvantageous to the city government’s coffers, because the LGU was compelled to remit the uncollected projected income from the excess between the projected gross monthly income versus the actual collection collected monthly.” (emphasis ours) (See ANNEX Y-1)

67. THAT COA pointed this out in a table whereby it showed that the City Government paying the excess from the Actual Collections paid from the General Funds of the City Government to the tune of P29,121,435.88 or P29.1 million.

Conclusion

68. THAT all respondents deliberately and intentionally conspired and connived together to use all schemes from misappropriation, conversion, misuse or even malversation of public funds or raids on the public treasury;

69. THAT all respondents deliberately and intentionally conspired and even patently used all means to orchestrate the establishment of ONE MONOLOPOLY in the commercial and construction industries by passing ordinances and orders as intended to benefit ONE PARTICULAR juridical person, UKC Builders, Inc. to the exclusion and prejudice of all other firms in the same industries;

70. THAT all respondents deliberately and intentionally took undue advantage of each of their respective positions, authorities, relationships, connections and influences to unjustly enrich himself personally and themselves as one under the PaDayon Pilipino political party at the expense and to the damage and prejudice of the Filipino People and the Republic of the Philippines.

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