The Commission on Audit decision is finally out but is it too late?

Gov. Alfredo Marañon Jr. announced yesterday that the COA has approved the Deed of Conditional Sale of 36,587 square meters of prime property in Bacolod City by the Negros Occidental government to AyalaLand Inc.

The request of the provincial government for approval of its Contract of Lease with ALI for 40,481 square meters of its property behind the provincial Capitol, and adjacent to the land up for sale, was also remanded to COA Audit team Leader Ernie Villa and the provincial government for contract review on post-audit basis.

The COA decision, dated September 21, was penned by COA Commissioners Juanito Espino Jr. and Heidi Mendoza.

COA chairperson Ma. Gracia Pulido Tan, who inhibited herself from the case, did not sign it.

The decision states that the request of the provincial government for approval of the sale and lease of the property was received by the COA secretary on July 22, 2011.

The long delay in the COA decision was one of the reasons that led to ALI’s withdrawal from the project in September this year.

Marañon had said then that the provincial government lost a golden opportunity for a P6 billion investment and thousands of jobs for Negrenses.

Yesterday, he said, “We will try to convince Ayala to reconsider their letter of disengagement.” The governor also called on Negrenses to help convince ALI and pray that it will change its mind.

A VINDICATION

He said the decision of the COA was a vindication, “because all the time, we have been saying that what we did was within the bounds of the law…rules and procedures of bidding were followed, it was transparent and above-board.”

“We will write to Ayala informing them that, at last, COA has approved our request and ask them to reconsider their decision to pull out from the project,” he said.

On the other hand, he said Ayala and SM Prime Holding Inc. (SMPHI) could amicably agree to share in the development of the 7.7-hectare property.

If ALI does not agree to return and continue the project, the provincial government could also hold a rebidding for the sale and lease of the property where it stands to earn more, he said.

That is because the price of the property has gone up since ALI made its offer last year, he said.

BEARING ON SM CASE

Assistant Provincial Legal Officer, Mary Ann Manayon-Lamis, said the COA decision has bearing on the SMPHI suit against the provincial government pending before the Regional Trial Court of Bacolod.

SMPHI contends that it should have been awarded the right to buy and lease the 7.7-hectare property, and not ALI, because it offered a higher bid. However, the provincial government contends that a rebidding was called because both SMPHI and ALI entered bids below the floor price.

SMPHI refused to join another bidding and the sale and lease of the property was awarded to ALI through a negotiated sale.

Lamis said the provincial government will furnish the court a copy of the COA decision.

The COA decision notes that SMPHI contends that it should have been declared the winner, although its bid was below the floor price, considering that it was within the allowable variance, its bid was much higher than ALI’s and that, there was a non-disclosure of the floor price by the provincial government Committee on Awards and Disposal.

NO MERIT

The COA, however, ruled that it does not find merit in such contentions.

Since the offer of SMPHI was lower than the appraised value of the property in question rendered by the Committee on Awards and Disposal, the declaration of a failure of bidding was in order, the COA said.

SMPHI’s contention that it should be declared the winning bidder because its bid offer was within the 10 percent variance of the appraised value is “unmeritorious,” the COA also ruled.

The COA also pointed out that there is no law or rule that requires the disclosure of a floor price prior to the conduct of a bidding.

In this case, the Committee on Awards and Disposal opted not to disclose the floor price earlier than the scheduled bidding as a strategy to come up with a competitive advantageous offer, it added.

All the bidders did not know of the floor price until after the bids were tendered, the COA said.

NO PREJUDICE

“Thus, there was no prejudiced party despite the lack of knowledge of the floor price. Moreover, there was no bidder that raised the issue before and during the bidding process,” the COA said.

SMPHI likewise insisted that its unsolicited proposal should have been given credence, but the COA said it was untenable because the provincial government did not accept it. The law does not mandatorily require the provincial government to accept an unsolicited proposal, the COA said.

It is clearly established that the provincial government and its Committee on Awards and Disposal complied with COA regulations, the COA decision also said.

SUPPORTERS THANKED

Yesterday, Marañon thanked the Negros Press Club, the Philippine Constructors Association of the Negros, Hotel and Restaurant Association of Negros Occidental, Metro Bacolod Chamber of Commerce and Industry, Blue and Gold Alumni Association Inc. of the University of Negros Occidental Recoletos;

The mayors of Negros Occidental and the officials of Bacolod City, the Integrated Bar of the Philippines, Vice Mayors League, United Negros Drivers Operators Center, United Architects of the Philippines, and all other groups that have supported the Capitol’s move to sell and lease its property to ALI.*CPG

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