THE Commission on Audit has granted the petition of a road contractor for payment of its claims against the Department of Public Works and Highways (DPWH) on a project halted by fire and bombing attacks in 2002 and 2003.
In its 19-page decision released last week, the COA en banc held that the Joint Venture of CMC/Monark/Pacific/ Hi-Tri is entitled to compensation in the sum of P46,622,867.36, representing the principal amount and interest awarded to it on arbitration.
Based on records, the Joint Venture won the P713.33 million contract for Construction of Contract Package 6Ml-9, Pagadian-Buug Section, Zamboanga del Sur, Sixth Road Project in April 1999.
However, work was interrupted when the contractor’s trucks and heavy equipment were set on fire on October 23, 2002, followed by the bombing of its batching plant located in Barangay West Boyogan, Kumalarang, Zamboanga del Sur, on March 11, 2003.
Reports attributed the attacks to the Moro Islamic Liberation Front (MILF).
The French engineering consultants said the project was already 80 percent complete when work was halted due to security reasons.
Failing to collect the unpaid portion of its billings, the Joint Venture filed a complaint against the DPWH before the Construction Industry Arbitration Commission (CIAC) on March 3, 2004.
In its 2005 decision, the CIAC directed the DPWH to pay the Joint Venture its claims plus interest consisting of foreign component ($358,227.95) and legal interest ($18,313.79); equipment and plant losses (P5.08 million) and legal interest (P464,298.08); additional cost resulting from the bombing (P6.27 million) and legal interest (P320,410.63); and additional costs in the contract price (P20.31 million) and legal interest (P1.04 million).
This was upheld by the Supreme Court in a ruling dated September 13, 2017.
The Joint Venture said it is owed a total of P131.315 million, but the COA en banc noted that the DPWH and the contractor had agreed on a fixed exchange rate regarding the foreign currency portion (US dollar) of the project.
“Hence, applying all of the foregoing, the arbitral award of P46,622,867.36, representing the principal amount and total interests awarded by the CIAC as computed by this Commission, shall earn the interest rate of 6 percent per annum from June 13, 2018, or the date the SC decision becomes final and executory, until its satisfaction,” the commission added.
The ruling was signed by COA Chairperson Gamaliel Cordoba and Commissioner Mario Lipana; Commissioner Roland Café Pondoc dissented.
Pondoc submitted the opinion that the petition should have been dismissed because the COA lacks jurisdiction. After all, the Supreme Court had decided the case with finality.
