Malaybalay City Mayor Florencio T. Flores told MindaNews on September 4 the city government would open the market within the month of September following the expiration of a nine-month extension given to contractor H.R. Lopez Co. Inc.

But only the first of the two-level public market building was operational.

The public market project has been subject to heavy criticism by the public on comments aired over radio station DXDB.

Flores challenged his detractors to go to court if they have proof that indeed money changed hands in the project.

He also broke his silence on the allegations the city government hired a contractor that ended up subcontracting the project to another firm.

"It's for them to settle. We did not deal with a subcontractor," the mayor said. He added that the supposed subcontracted firm, Dreamworks, Inc., who tried to collect payment from the city government, has stopped doing so.

But Flores said they have seriously evaluated the capacity of contractor H.R. Lopez Co., Inc. whether they are able to finish the whole project, adding that extending the project for another term with the contractor is “no longer an option."

He said the firm's doubted capacity and the legal skirmish over the project's contract and payment scheme caused the delay of the 540-day project initially scheduled for completion in November 2007.

Flores said for the remaining two phases, they will have to pick from only two options: to rebid or for the City Engineer's Office to take over. He has been mum about possible legal action against the contractor.

Sources said the city government has sacrificed its other functions because of the delay in the completion of the project. A source said City Hall has used funds for other expenses to pay the amortization of the loan it acquired for the project.

The public market, an economic enterprise unit, is said to be self sustaining. Proceeds of the operations of the three buildings would be used to pay the loan.

Flores denied this, saying the money used to pay contractors is taken only from the loan acquired with Land Bank of the Philippines. He said city government allotted regular budget to pay amortization.

He admitted, however, that the original design of the building has been modified to meet adjustments.

"It's only the ground floor that's being completed," he told this reporter in an earlier interview. 

In March, Flores told this reporter they are leaving it to the City Legal Office to study the right move after the City Engineer's Office certified that the firm, H.R. Lopez Co., Inc., had not finished the project despite the nine-month extension.

The firm is supposed to finish within the extended time the whole project, including the integrated terminal and the commercial complex adjacent to the public market.

Based on the slippage alone, Flores said, the city government can already take action against the firm.

Vice Mayor Ignacio W. Zubiri shared the mayor's position but stressed there should be amicable settlement.

The project was first extended from February to July 2007. In July 2007, the Commission on Audit's Legal and Adjudication Sector considered the contract void, a decision which the firm appealed in September that year.

Construction was stopped in September 2007, according to city engineer Teodocio Pabillaran, but H.R. Lopez Co. said they stopped in November 2007.

On July 3, 2008, the COA Legal and Adjudication Sector declared no legal impediments to the validity of the contract, prompting the firm to request for the nine-month extension since "they are ready to complete the balance of work."

Flores endorsed the request on August 1, 2008 to the city council, which approved the extension three months later, on October 21. But councilors noted that the firm resumed construction on August 15, or prior to the approval.

Zubiri said then that the P250-million loan acquired for the project will incur interest only when money is withdrawn. He said rules might allow another extension if the firm asked for it.

"But I prefer termination," he said. (Walter I. Balane / MindaNews)

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