COA’s report – 4

Yesterday I cited the letter dated July 11 of Governor Alfredo Marañon in response to the July 11 letter of SM Prime Holdings Inc. insisting that it won the July 7 bidding that was declared a failure because the two bidders, SMPHI and Ayala Land Inc. submitted bids lower than the approved (and validated) floor price set by the provincial government.

Marañon reiterated the same facts – that the bidding was declared a failure because “both bidders were found to be non-compliant having submitted bids/offers lower than the appraised value of P19,500 fixed by the Committee which was duly reviewed by the Commission on Audit, thus resulting in the failure of the bidding.”

Can there be anything clearer than this? Does SMPHI want the governor and the Committee to be charged before the Ombudsman for violating the conditions of the bidding process and the valuation of COA in order to favor SMPHI?

What display of arrogance of wealth is this that SMPHI can force the governor to get what it wants even if the governor and others will land in jail and be disgraced just so SMPHI can increase its already overflowing wealth? To what extent will SMPHI sacrifice others at their altar of materialistic greed?

Governor Marañon insisted that “there is nothing in the law or in the rules that mandates the disclosure of the appraised value before the bidding. Both SMPHI and ALI fairly competed against each other, both having no knowledge thereof.”

Indeed, think of the situation where everybody knows of the floor price. Then there would be open auction as they do in Christie’s or in slave markets. A fish market can compete with this kind of thinking.

SMPHI should recognize that this property belongs to the province, to the people of this province and not to Governor Marañon who has the sworn responsibility of protecting the public interest. His is the real “matuwid na daan” the true transparency in public affairs especially public property worth billions of pesos.

On the other hand, SMPHI wants our governor to take illegal and indecent shortcuts. I think SMPHI should bring its business elsewhere.

The governor also reminded SMPHI that “the Committee on Awards and Disposal of Real Property was not obliged to disclose the appraised value.” True enough, SMPHI has not presented a single sheet of paper showing that a bids and awards committee is obliged to tell the bidders what the floor price is.

This is not like buying groceries where the Suggested Retail Price is required to be published so customers can decide whether to buy or not. Surely SM with its huge chain of supermarkets and malls knows this. But this is not required of public bidding and SMPHI knows that as well.

The governor further reminded SMPHI (though I know they know this simple fact) that “the Provincial Government may dispose its properties thru the process of negotiation which is open to both SMPHI and ALI, giving them reasonable opportunities to submit improved offers or bids in accordance with the technical and financial requirements.”

The governor then reiterated his invitation to SMPHI “to participate in the negotiation process.”

Both parties attended the conference of July 11 that discussed the Terms of Reference and they agreed that the two interested parties submit their proposals on July 15.

However, instead of honoring its word to participate in the July 15 negotiation, SMPHI filed a case in court to stop the province from disposing of its properties it deems fair and reasonable. Its case for Temporary Restraining Order was denied by the RTC and like the Marines who never say die SMPHI post haste went to the Court of Appeals in Cebu but this too was later dismissed.

SMPHI boycotted the negotiation leaving ALI to submit its price of P20,500/sq. m. or P750,033,500 less P25 million for the development of the Provincial Lagoon but still higher than the appraised value of P713,446,500.

For the lease of 40,481 square meters with an appraised value of P65/sq.m., ALI submitted a price of P73/sq. m. and since there were no other participant and since the price offer was way above the approved valuation, the Committee had no other choice but to award the contracts to ALI.

Because of SMPHI boycott, ALI got the property and the province got better value than the COA appraised floor price.

So, who is to blame for SMPHI’s loss but itself? I think SMPHI made a wrong move or miscalculation, perhaps banking on its strong influence which we now see. I will discuss later the reported political pressure.

SMPHI had all the opportunities to bid. If it wanted this property so bad it could have participated in the negotiation and outbid ALI.

Tomorrow let’s revisit the sequence of events thereafter.*

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