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Graft complaint filed against Bistek, others over solar power Project

Published Mar 3, 2020 12:00 am
By Czarina Nicole Ong Ki A complaint for graft has been filed against former Quezon City Mayor Herbert “Bistek” Bautista, and two others before the Office of the Ombudsman on Tuesday morning involving the reportedly unauthorized P25 million solar power system project entered into by the city government last year. The Quezon City government, represented by City Legal Department head Atty. Carlo Lopez Austria filed the complaint for violation of Section 3(e) of R.A. 3019 or the Anti-Graft and Corrupt Practices Act against Bautista, former City Administrator Aldrin Cuña, and former City Engineer Joselito B. Cabungcal. On January 23, 2019, Purchase Request No. 055463 for the amount of P29,206,736 was issued for the Supply and Installation of Solar Power System and Waterproofing Works for Civic Building F. Austria said in the complaint that the project was supposed to provide a solar photovoltaic system atop Civic Building F within the City Hall Compound, and the waterproofing of the roof deck upon which the system was to be installed. A Notice of Award dated June 14, 2019 was issued by Bautista in favor of Cygnet Energy and Power Asia Inc., with a winning bid of P27,621,100. Then on June 19, Bautista signed a Supply and Delivery Agreement with Cygnet. On July 1, the Official Receipt No. 0032 was issued to Cygnet in the amount of P25,342,359.25. Austria said this was the actual amount disbursed less all applicable taxes and charges. Cuña signed the Certificate of Acceptance, while Cabungcal signed the Obligation Request for the project. The complaint stressed that Bautista could not have validly entered into the subject contract because there was no prior authorization from the city council regarding the project. "Upon inquiry by the City's Internal Audit Service, the Office of the Secretary of the Sangguniang Panlungsod, in its communication dated February 3, 2020... stated that there were no legislative measures or records in relation to the project," the complaint stated. Austria further explained that the project was not identified in sufficient detail in the appropriation ordinance, as its budget was sourced from two different lump sum appropriations. "It needed prior authorization or subsequent ratification from the City Council," he said. "Since there was no such act from the City Council, the respondents are guilty of violating Section 22.c and 455.b.1.vi of the Local Government Code." At the same time, there was no complete delivery from Cygnet. Austria said the solar photovoltaic system was required to have a Net Metering system connected to the grid of MERALCO for the project to be considered as complete. Cygnet was required to "apply and secure the necessary Net Metering for the project from MERALCO." Unfortunately, this requirement was not met. Based on the terms of the contract, only 50 percent of the project cost should have been released upon the delivery and installation of the materials for the project. The remaining 50 percent should have been released only upon "testing, commissioning, training, technology transfer" of the project. In this case, the full amount of the project was released to Cygnet despite the fact that the required Net Metering system was not applied. Austria added that there was even no proof that the testing, training, commissioning, or technology transfer was conducted. "It is clear from all the foregoing that the respondents, in conspiracy with one another, violated the law when they acted with manifest partiality, evident bad faith, and gross inexcusable negligence when they entered into the contract without any authorization from the City Council and released public funds in violation of the... contract," the complaint read.
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