DPWH, Cebu execs sued
in lamppost overprice

GRAFT charges were ordered filed Monday against former Department of Public Works and Highways-Region VII director Robert Lala, former Mandaue City mayor Thadeo Ouano, Lapu-Lapu City mayor Arthuro Radaza and 18 others over alleged overpricing in the procurement and installation of lampposts in connection with the holding of the 12th Association of Southeast Asian Nations (ASEAN) summit last year.

Tanodbayan Ma. Merceditas Gutierrez said investigators gathered sufficient evidence to indict all the respondent public officials for binding the government in a "grossly disadvantageous contract" with some lampposts padded by as much as 10 times their actual price.

"(T)here is an exorbitant jacking up of the suppliers' cost to the purchase price or acquisition cost the government was made to pay .it can be said straightforwardly that there is overpricing. To jack up the cost this much is tantamount to undue enrichment at government expense. The contracts, therefore, are manifestly and grossly disadvantageous to the government," the Ombudsman said.

From DPWH-Region VII, charged along with Lala were former assistant regional director Gloria Dindin, assistant regional director Marlina Alvizo, maintenance division OIC-chief Pureza Fernandez, maintenance division OIC-assistant chief Cresencio Bagolor, legal officer Agustinito Hermoso, planning and design chief Luis Galang, administrative chief Restituto Diano and construction chief Buenaventura Pajo.

Other Mandaue City officials indicted were OIC-city engineer Hidelisa P. Latonio, assistant city engineer Gregorio J. Omo and engineers II Mario S. Gerolaga, Alfredo R. Sanchez Sr. and Rosalina M. Denque.

Also charged from Lapu- Lapu City government were city engineer Julito Cuizon, assistant city engineer Fernando T. Tagaaan Jr. and engineer IV Rogelio D. Veloso.

Named private defendants were Isabelo A. Braza, president of supplier Fabmik Construction Equipment Supply Company Inc; and Gerardo S. Surla, chairman of Gampik Construction and Development, Inc.

Gutierrez said six counts of graft will be filed against various respondents - one for each of the contracts drawn in connection to the controversial project.

Documents obtained by graft investigators showed that 40 sets of park lamps worth P1,600 each were bought at P50,000 per set for an estimated overprice of P1.93 million; 39 single-arm street light poles worth P2,000 each were bought at P72,500 each for an overprice of P2.75 million; 139 more units of 7M-single arm poles were bought for P10.08 million when its actual cost was only P278,000; 60 sets of 9M-double arm posts priced at P2,500 per set were acquired at P85,500 per set for an overprice of P4.98 million.

Two contracts between DPWH and Gampik for a total of 660 sets of were overpriced by P17.24 million and P14.52 million. Three contracts between DPWH and Fabmik for single-arm poles, double-arm posts and decorative lamp assembles were overpriced by a total of P14.62 million.