A P42.13 million claim filed in 2019 by the D.M. Consunji, Inc. (DMCI) and R-II Builders, Inc. against the Metropolitan Manila Development Authority (MMDA) has been thrown out by the Commission on Audit for lack of merit.
In its eight-page en banc decision, the COA held that the amount being claimed was not sufficiently established by evidence in the absence of a detailed computation.
“Petitioners failed to submit supporting documents such accomplishment report, trip tickets, billing statements, and other documents showing partial performance of contract and breakdown of expenses incurred,” the Commission Proper said.
The claimants said they incurred expenses totaling P42,132,740.17 during the partial execution of the contract to develop, operate and maintain an Interim Waste Management Facility (IWMF) for Metro Manila during the administration of former President Joseph Estrada.
The project to build a new sanitary landfill with a 25-year lifespan was prompted by the closure of the San Mateo Landfill on December 31, 2000 but residents of Rizal protested against it.
This led to the idea of an interim waste disposal site or a controlled dumpsite to be operated for a two-year period.
When the project was announced for bidding, the DMCI and R-II Builders former an unincorporated Joint Venture (JV) intending to submit an offer to design, finance, construct, and operate a controlled dumpsite to serve residents and business establishments in Metro Manila.
Based on the JV’s proposal, the sanitary landfill will be constructed on Semirara Island in Caluya, Antique which entails opening a temporary transfer station in Pier 18 in Vitas, Tondo, Manila with a capacity to handle 2,000 tons of waste per day. From there, barges will be used to ferry the garbage to a pre-arranged tipping site in the northernmost part of Semirara Island.
The MMDA declared the joint venture as the winning bidder and a Notice of Award was issued in its favor on December 21, 2000. However, this was made subject to the submission of a permit from the Department of Environment and Natural Resources (DENR).
There was also a reservation made by then-President Estrada that the MMDA contract on the project needed to secure prior approval from the Office of the President.
According to the claimants, they started work in preparation for the transfer station in Vitas, Tondo and the tipping site in Semirara from January 2 to 5, 2001. Meanwhile, a regional trial court in Antique issued injunction orders against the continuation of the JV’s operation.
In the middle of these, Estrada stepped down from Office in January 2001 in the aftermath of an aborted impeachment trial for corruption.
The DMCI and R-II Builders sought payment of P7.28 million for the site development in Tondo and P4.54 million for the Semirara end. Likewise, it asked reimbursement of P2.77 million for “predevelopment expenses”; P2.74 million for hauling, mobilization, and demobilization; and P2.79 million for barging operations expenses.
The MMDA balked, saying the project was subject to presidential approval which was never issued. At the same time, it pointed out that there was a dearth of proof that the MMDA was unjustly enriched at the expense of the claimants.
MMDA legal consultant Vincent Tagoc added that Metro Manila even suffered damages when the 5,449 tons of garbage was brought back and unloaded from the barge.
“This Commission finds the petition for money claim not meritorious. it cannot be concluded whether the government would actually be unjustly enriched at the expense of the JV since petitioners failed to present evidence to show that benefit has been inured to the government,” the COA said.
