Two sub-contractors expose gov't housing projects anomaly

By Hannah Torregoza Two sub-contractors on Tuesday blew the whistle on the alleged irregularities committed by the contractors tapped by the National Housing Authority (NHA) for the implementation of the government’s mass housing program for victims of man-made and natural calamities. Camilo Enciso Salazar of Balangiga Eastern Samar, and Cesar Baluarte, of Las Piñas City, testified on the alleged anomalous practices of JC Tayag Builders and 3R Metal Craft respectively, during the Senate committee on housing and urban development’s hearing on the alleged substandard materials used in the construction of housing units for disaster victims of typhoons “Sendong,” “Pablo,” and “Yolanda;” and ”Zamboanga siege.” Salazar and Baluarte also intimated the alleged failure of the NHA to act on their behalf despite their repeated calls and attempts for the agency to act on their requests to prod these contractors to pay them. In his testimony, Salazar, an overseas Filipino worker (OFW) from Saudi Arabia, told the committee chaired by Sen. Joseph Victor “JV” Ejercito, that when he was tapped by a certain Mesalina Almazan to sub-contract under JC Builders for the NHA Resettlement Housing Project in Barangay Cansumangkay, Balangiga, Eastern Samar, he agreed to enter into a contract with the group and agreeing to contract labor and material for housing units at P120,000 per unit in Aug. 2016. But sometime in October 2016, Salazar said Almazan started having difficulty paying them, the latter claiming that JC Tayag issued post-dated checks to her that bounced. He said Almazan eventually pulled out of the project out of fear from the sub-contractors whom she owed. When JC Tayag took over the project in Nov. 2016, Salazar said the contractor barred him from sub-contracting materials saying he would be given a supplier who would give him the much-needed items. But according to Salazar, Tayag was only able to supply the materials for two weeks. He was also advised by the contractor to open an account with PNB supposedly to ensure bank to bank transactions but said Tayag never once deposited money into his account. He said Tayag chose to send money through Palawan or Cebuana Lhuillier, which are not free of service charge. On December 2016, Salazar said JC Tayag’s trucks came carrying steel that was divided among sub-contractors but were surprised that he sent materials were substandard and do not comply with the specification set for the housing resettlement program. He then sent notice to the NHA about the substandard materials but none from the agency responded to his appeal. When the House Committee on Housing and Urban Development headed by Rep. Albee Benitez went to the site to investigate and conduct site inspection, Salazar said he was able to disclose his problems with the general contractor and the management of NHA. But a certain Dir. Rizaldy Mediavillo, a regional director of the NHA Region 8, approached him after the public hearing saying that “he should have talked to him first before speaking to the committee.” Salazar also said Mediavillo warned him “not to go against the NHA” when he refused to back out from testifying against the contractor before Congress even after trying to offer him another job and project. On the other hand, Baluarte, owner of C.Q. Baluarte Construction, told the committee that when he was tapped by 3R Metal Craft, owned by Rogelio Relucio, as a sub-contractor he agreed to P10.4-million worth of contract for 72 units for the Bagong Pag-asa Housing Project in Margen Ville Subdivision, Barangay Margen, Ormoc City. However, the lawyer of the contractor refused to sign the contract saying they will only do so after 15 days of work in which he agreed. But after 15 days of work, Baluarte said he was only billed P500,000 in January 3, 2017, and subsequently questioned why the owner would not pay him the amount they have agreed upon. But the owner, he said, the amount commensurates the work progress they achieved for five weeks. Baluarte said he had no choice but to use his own funds for the construction of the project. Eventually, when he was able to finish 50 percent of the project at P5.742-million, and submitted an accomplishment report to the contractor they still refused to pay him the correct amount. Baluarte said that when he decided to inform NHA officials at the head office in Quezon City, they informed him that if they were to evaluate the project he started, it is already at 60 to 65 percent finished but they refused to do submit documents out of fear for Relucio. When he watched the contractors at the televised Senate hearing where the contractors sworn in told the committee they did not hire sub-contractors, Baluarte said that was when he decided to testify. “I immediately made a decision to come to his office the next day to tell him my personal experience as one they hired as a sub-contractor,” Baluarte said. Ejercito said the testimonies of the two whistleblowers bolsters his belief that some officials of the NHA are colluding with contractors for the rehabilitation of these relocation sites. The senator, likewise, said he sees the need to relocate again those who were relocated to these sites, as these poses danger to their well-being as apart from substandard units, they are placed in unsuitable locations, and they lack basic utilities such as water, electricity, health and sanitation, education, and livelihood opportunities. Ejercito said that due to corruption and other anomalies, the government is losing funds for as much as housing about P30-billion in calamity housing project and P20-billion for AFP/PNP housing units. “Somebody should be held accountable for these, we cannot just let it pass. These are billion worth of projects that lay waste because it's not being utilized correctly. We are not a rich nation,” Ejercito said in an interview after the hearing. “We will make the necessary recommendation to the committee based on the findings in these three hearings. We will make the recommendation and charges would be filed,” vowed Ejercito.