Cebu’s ‘overpriced’ lampposts
Posted by: Alecks P. Pabico | March 9, 2007 at 4:49 pm
Filed under: Governance, Image Galleries, In the News
Lampposts installed in Mandaue City have a dome top, 124 of which line the Ouano Wharf to UN Avenue.
Lampposts with a hat-like apex are commonly seen along the roads of the cities of Cebu and Lapu-Lapu.
Another of those dome-topped lampposts in Mandaue reportedly purchased at P224,000 each.
A row of lampposts along the highway in Lapu-Lapu.
Lampposts of this design are installed along the center islands of the ASEAN summit's ceremonial routes.
Another type of lamppost found in Mandaue.
Hover the mouse cursor over a thumbnail to display image or click thumbnail to hold.
CEBU CITY — Big-ticket government projects are a sure magnet of corruption, as the PCIJ’s almost two decades of work in exposing anomalies and wrongdoing in the public sector has shown.
Think Centennial Exposition project, the PEA-Amari scam involving the sale of government land, and the award of costly power contracts to favored independent power producers, all of which were brokered during the time of the Ramos administration.
Under Gloria Macapagal-Arroyo, there was the hasty approval of the $470-million contract to rehabilitate a hydroelectric power plant to the Argentine firm IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonima). Other corruption-tainted projects under Arroyo’s watch include the construction of the 5.1 kilometer highway named after her father, the late President Diosdado Macapagal; the mothballed Terminal 3 of the Ninoy Aquino International Airport; and the North Rail rehabilitation project.
It comes as no surprise therefore that a project like the Cebu International Convention Center — recently built to serve as venue of the Association of Southeast Asian Nations (ASEAN) summit in January this year — is now at the center of controversy for allegations of overpricing in the procurement of some 1,800 decorative lampposts installed along the ceremonial routes used by summit delegates in the three Metro Cebu cities of Mandaue, Cebu and Lapu-Lapu.
The said lampposts, pictures of which you can see in the image gallery, reportedly cost P224,000 each in Mandaue and Lapu-Lapu. The regular price of each post is only P83,000, according to Marlina Alviso, the Department of Public Works and Highways assistant director for Central Visayas who prepared the program of works for Cebu City. This, she said, already covers all the materials, power, and cost of labor for their installation.
Interviewed by Sun.Star, a Cebu businessman, Crisologo Saavedra, even said that he wrote to Cebu City Mayor Tomas Osmeña offering him to supply the city government with the same lampposts for only P31,000 each to illustrate how “blatant” the overpricing was.
The amount, he said in his letter already covers the acquisition cost of only P11,000 (from a supplier in China), transportation from Manila to Cebu, handling and trucking, civil works, installation, cost of money, incidental expenses, with a 30-percent profit to boot.
The overpricing issue has spawned denials, accusations and buck-passing among local government and DPWH officials. Mandaue and Lapu-Lapu city officials admitted they prepared the program of works and estimates but claimed they set the amount only at P50,000, insinuating that it was the DPWH which padded the costs.
The Office of the Ombudsman in the Visayas is now investigating the matter.
Overpricing is the most common form of procurement fraud. In her book that serves as a guide to investigating common procurement fraud and irregularities, Heidi Mendoza, former auditor of the Commission on Audit, says that there is a high rate of overpricing involved in uncommon or highly technical items like hospital equipment. But the situation is equally alarming in common items. In one Metro Manila school she audited, a Mongol pencil, for instance, cost P90 while a marble used in science laboratory cost P50.
Mendoza also says that what is intriguing is that overpricing is not hidden. On the contrary, it is widely practiced. She cites the case of a mayor who even casually told an auditor that it should not be considered as overpricing if the price difference falls within the range of 50 to 100 percent. And as purchases of government do show, the cost of items purchased is usually four to five times the actual price.
feel free to leave a comment
You must be logged in to post a comment.













5 people have left comments
[...] I guess I was wrong. [...]
I guess this isn’t new anymore under GMA administration. Who will benefit this over-pricing of lamp-post? Contrary to what GMA is doing in other agencies like health service & welfare, and yet her own projects can’t even look how much damaged it crafted in taxpayers’ money. I think it’s all same as the centennial expo, amari deal, macapagal boulevard, NAIA, the controversial fertilizer fund from jocjoc bolante and other big mesh-up projects, GMA and her cohorts just all siphoned these projects?
She can even suspend other local executives for corruption and yet her own cohorts can not. Who knows she may have another account in the name again of jose pedal. Enough Mrs. President, it’s too much now. You already stole the highest position of the land and yet you still continue grabbing all these things. For God’s sake please think also of the millions poor filipinos countryside who cannot even feed for themselves.
[...] SOURCES: Sunstar Cebu Inquirer.net PCIJ [...]
The lampposts! I see them everyday. And every time I see those expensive (read as: over-priced), I feel the shame. It hurts me too. And I asked, what happened? Until now, no one has been prosecuted but many of us suffer.
Not only the lampost ,CICC are at mess! Even the new traffic lights they installed, most of which are not working well. The road improvements too now are beginning to deteriorate! Hope these can be checked too.