Ruth Allen Ruste, Board Secretary of the RCDG Construction, reads the Notice of Recall and Cancel Award signed by Zamboanga City Mayor Celso Lobregat as Dr Anna Lisa Chan, the Chairwoman of the Board of RCDG, looks on during a press conference Wednesday, August 12, 2009 in Zamboanga City in Mindanao. (Mindanao Examiner Photo)
ZAMBOANGA CITY, Philippines (Mindanao Examiner / August 13, 2009) - An established Filipino construction firm has threatened to sue the mayor of Zamboanga City, Celso Lobregat, after the politician told them that he would cancel the awarding of a controversial multi-million bus depot project in Zamboanga City in Mindanao.
RCDG Construction accused Lobregat of grave abuse of discretion.
"RCDG believes that the action of the City Government is without any legal basis, and is tantamount to a grave abuse of discretion. Hence, RCDG will take legal action and avail of all the remedies it has under the law. Moreover, it will not hesitate to hold the concerned officials liable for their illegal, irregular and arbitrary actions," said a statement read by Ruth Allen Ruste, the Secretary of the Board of the RCDG Construction, during a news conference on Wednesday in Zamboanga City.
Lobgregat notified the RCDG that the City Government would cancel the bus depot project won by the consortium RCDG and R.U. Aquino Construction after accusing the firms of failing to disclose to the Bids and Awards Committee that they have three pending projects with abandonment and negative slippage issues.
The disclosure of any pending projects was necessary to determine whether the construction firms are qualified to build the bus depot or not.
Ruste denied Lobregat's allegations and said they will sue the mayor and members of the Bids and Awards Committee for grave abuse of authority, among others.Another construction firm, Dimson, which failed to win the bus depot contract, has earlier filed a case with the Ombudsman against Lobregat and several other city government officials in connection with the bidding for the multi-million Integrated Bus Terminal project.
Lobregat, a former member of the House of Representatives, has denied any irregularities in the bidding process. (Mindanao Examiner)