COA: Initial cost estimate for Makati Science building was only P348.6 million

(Updated 11:41 a.m.) Commission on Audit chairperson Grace Pulido Tan on Tuesday said the initial estimate cost for the 10-storey Makati Science High School with dormitories was only P348.6 million.

 

Tan said that based on the documents submitted to their office, the estimate was P348.669 million or P23,000 per square meter.

 

She said the invitation to submit a design proposal for the school building was sent on September 17, 2007.

 

“At the beginning there was no indication how many phases (of the construction) would be. The budget for the first phase was P99.9 million hanggang sa umabot sa third phase na umabot na sa P300 million pero nagpatuloy pa ito sa phase 4, 5, and 6. Ang tanong ko sa technical auditors e dapat dito pa lang nagtaka na tayo. Bakit tayo umabot sa point na ito na P1.3 billion na ang nagastos,” he said.

 

She said these were the things that they consider as red flags, compelling them to audit the school building more closely.

 

“These are things that catch our attention and compel us to investigate. We are not making any judgment, we are not in the position (to say) if it is overpriced or not pero may mga matitinding rason kung bakit dapat naming balikan ito,” Tan said during the Senate blue ribbon subcommittee hearing on the Makati City Hall Building II alleged overpricing.

 

Based on the recent documents from the Makati City Hall, the local government has shelled out P1.3 billion out of the P1.5 billion budget for the 54-classroom school building.

Earlier in the hearing, experts said the cost of construction of the Makati Science High School should be lower than the P1.3 billion the local government shelled out for it.

On the other hand, Federico Cuervo, a property appraiser and president and chief executive officer of Cuervo Valuers and Advisory Inc., said the market value of the building is P489 million or 24,000 per square meter. 

Vice President Binay has denied there was any overpricing in the construction of the Makati Science High School building, dismissing the allegations as "lies" by Senator Antonio Trillanes IV.

The Senate blue ribbon subcommittee is probing the alleged irregularities in the construction of the Makati City Hall Building II linking the Vice President and his son, incumbent Makati Mayor Junjun Binay.

No clearance

 

The COA chairperson also reiterated that they have not issued any clearance to the Makati City Hall Building II and have never issued anything like that for any project.

 

In his sworn affidavit submitted to the Senate blue ribbon committee, the Vice President said the Makati City Hall Building II has been subjected to the review of COA and no irregularity was noted. 

 

“Ano 'yung term na clearance na sinasabi nila? Hindi po kami nagki-clear. 'Yung aming inspection report is for the record that it has been inspected at this particular point of time. Hindi po required na meron kaming clearance bago magbayad ang ahensiya. The decision to pay is a management decision. We do not interfere because it will put us in a compromising situation,” she said.

 

Tan further said that non-issuance of notice of disallowance does not mean the project has been cleared.

 

“Not necessarily cleared. 'Pag 'passed in audit' it means particularly and specifically na in-audit ang proyektong 'yun. Ang proseso ng audit ay hindi 100 percent na vina-validate o in-audit (ang proyekto),” she said.

 

“Hindi kami nagki-clear. Ano ba ang ibig sabihin nila sa na-clear? Pero if they are talking about a piece of paper, hindi po kami nag-iissue ng ganyan. Contract review is a misnomer. The basis of our technical people in making that determination is 'yung submission din ng ahensiya sa cost, quantity, materials,” she said. —KG/RSJ, GMA News