ILIGAN City -- In a recent development concerning the construction of the Palao market at barangay Palao, the Construction Industry Arbitration Commission (CIAC) has given the green light for the termination of BM Marketing as the project contractor. However, it has been revealed that the contractor had already completed a staggering 99.4 percent of the project.
City mayor Frederick Siao expressed his disappointment with the decision, highlighting that it seemingly favored the contractor. The termination of BM Marketing's services was initiated by the city on April 14, 2023, citing "undue delays" after a thorough review and investigation. Siao emphasized that the decision was not politically motivated, as the project was initiated by his predecessors.
Following the termination, the contractor pursued legal action, initially filing a case with the Regional Trial Court of Lanao Norte. However, jurisdiction over such matters was deemed to lie with the CIAC, prompting the contractor to redirect its case accordingly. The CIAC conducted inspections at the project site on December 11, 2023.
Siao expressed frustration with the recent decision by the CIAC, stating that the city's only recourse now is to appeal to the Court of Appeals. He criticized the CIAC, referring to it as "just a group composed of three people," hinting at what he perceives as its incompetence in handling such matters.
City legal officer Atty. Roberto Padilla provided additional details, noting that the project is reported to be 64 percent complete, with 50 percent of the contract price already paid to the contractor. Despite this, the city still holds P291 million of the P583 million contract amount, which Padilla hopes will be sufficient to complete the project.
The Commission on Audit, in its Audit Observation Memorandum dated January 12, 2023, addressed to Mayor Siao, recommended various measures to evaluate the contractor's performance and impose liquidated damages in accordance with the Government Procurement Reform Act.
