ASEAN Lampposts Controversy

Summary — Collusion between bidders and key local government officials in the procurement of the lampposts for The ASEAN summit, including, but not limited to, overpricing of these lampposts.
GRAFT, CORRUPTION, and all types of criminal acts by some DPWH officials, mayors, and maybe even then DPWH secretary Ebdane. In short, all the makings of another “successful” government project.
And so, after 3 weeks of fact finding, The Ombudsman Visayas has found that there was indeed massive overpricing in the controversial project to install street lights in three Metro Cebu cities for the Association of Southeast Asian Nations leaders summit last January.
19 Officials listed for Indictment:
THE BIG FISHES
- Mandaue City Mayor Thadeo Ounao
- Lapu-Lapu City Mayor Arturo Radaza
- Director Roberto Lala of the Department of Public Works and Highways (DPWH)
- Assistant Director Gloria Dindin (DPWH)
- Assistant Director Marlina Alvizo (DPWH)
- Assistant Director Pureza Fernandez (DPWH)
- Section Chief cresencio Bagolor (DPWH)
FOUND TO HAVE PREPARED THE POWE (Program of Works and Estimates)
Mandaue City Engineer’s Office
- Hidelisa Latonio
- Mario Gerolaga
- Alfredo Sanchez
- Rosalina Denque
- Gregorio Omo
Lapu-lapu City Engineer’s Office
- Rogelio Veloso
- Fernado Tagaan
- Julito Cuizon
DPWH BAC (did the actual limited-source procurement that resulted in the purchase)
- Atty. Agustinito Hermoso
- Luis Galang
- Restituno Diano
- Buenaventura Pajo
Honorable Mentions:
- the unnamed members of the Technical Working Group that assisted the BAC
- the people behind Fabmik Construction and Equipment Co. and Gampik Construction and Development Inc.
Let’s Do The Math
724 lamps + 248 streetlights = P174.8 million (Lapu-Lapu City)
453 Lamps + 202 streetlights = P130.02 million (Mandaue City)
683 Lamps = P61.050 million (Cebu City)
Total Cost= P365.87 million (That’s a whole lotta dough)
Now, let’s assume that in actuality the average cost for each lighting including installation was P80,000 (I still think this should even be lower)
Lamps = 1860
Streetlights = 450
Total = 2,310
P80,000 x 2,310 = P184.8 million
Cash in Pocket = 365.87 – 184.8 = P181.07 million
So, in the end, there were probably around P200 million or so to spread around. Of course the bigger fishes would probably have had the bigger cut, maybe around P15 – P20 million each?
This is all of course still for investigation, but I would be surprised if no one is convicted of any crime.
CHIZ ESCUDERO REACTS
According to Chiz Escudero that The Ombudsman should spare no one, not even an administration favorite like retired general Hermogenes Ebdane Jr., who was DPWH secretary at the time.
“Not only should the Ombudsman extend the investigation to the top,” Escudero said. “The graft body should also upgrade the charge to plunder, considering the amount involved.”
SOURCES:
Sunstar Cebu
Inquirer.net
PCIJ


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Nick,
You may want to check out Peryodistang Pinay’s in depth report on this scandal. You will be shocked as some of the posts cost as low as P25,000 and as high as P300,000. http://peryodistang-pinay.blogspot.com/
Schumey,
thank you for the reference. I wasn’t aware of this specific blog. I’ve found through some readings that all of this could probably have been done for an average of P31,000 (installation inclusive).
It was ill planned and full of money hungry officials…
In the end, it should have been planned much better, with transparency, and better leadership. If these things could have been done, I believe even more local companies could’ve shared in the project, and all at a lower cost…
Can you say Boom Corrupt Corrupt! Damn friggin government officials only go into government to make some money.
[...] won reelection. Considering that he was suspended after reports surfaced of his involvement in the overpriced ASEAN lamppost controversy, this is a surprise. He won over the acting Mayor Norma Patalinjug, who was his replacement after [...]