Iligan City mayor faces graft, other charges in P590-M Pala-o public market project

 In a 21-page complaint filed at the Office of the Ombudsman Mindanao based in Davao City on Tuesday, Feb. 18, Iligan City incumbent representative Celso Gomera Regencia  and five other individuals mostly market vendors accused Siao for alleged irregularities in the contract for the completion  of the Palao-o market project.

Regencia in an interview, said the legal basis  for the complaint includes unauthorized contract awarding which Siao allegedly entered into a contract  with Metro Stonerich  corporation amounting to P253,986 million without securing prior  approval from the Sangguniang Panlungsod. This, he said a violation  of Section 455  of the Local Government Code of the Republic Act 7160.

The complaint stated the financial  disadvantage to the government, since the original  project cost  was P583, 468 million with BM Marketing completing 92.71 percent of the work, leaving only P42,539 million worth of work to be done. 

However, according to Regencia, Siao issued a notice to terminate the contract on January 25, 2023 due to BM’s 35. 30 percent slippage, improper execution of works, use of scientific methods, and alleged misrepresentation of  elevator brands. 

Siao awarded a new contract to Metro Stonerich for P253,986 million, which resulted in an undue price increase of P231,360 million, which exceeded the approved budget for the contract of P590 million.

Regencia, who is currently seeking re-election   also accused Siao to have allegedly authorized an advance payment of P38,097,900.00 to Metro Stonerich Corporation  without proper justification.

He said this is a violation  of Article 217 of the Revised Penal Code, which orohibits the misappropriation of public funds.

Regencia alleged that Siao acted in  bad faith by unjustifiably terminating BM Marketing’s contract  and manipulating  reported work accomplishment rates to  justify the termination.

This came after  the Construction Industry Arbitration (CIAC) has since ruled the termination invalid and ordered  the Iligan City Government  to pay BM Marketing  a total of P560,843,238.70.

Regencia  said the completion of the market has been severely delayed  due to Siao’s actions, causing financial hardships for vendors and inconvenience to the public who depend on the Pala-o market for their livelihood and daily needs.

Regencia further said that this legal action is taken to uphold transparency and protect public funds from misuse.

When asked about his reaction, Siao, a reelectionist said he has yet to receive  a copy of the complaint. However, he said there were several issues and problems with the project’s completion.

Siao meanwhile, refused to give further comment since he does not have an official copy of the complaint.