CA halts order allowing firm to collect fee

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Wednesday, March 25, 2015


THE Court of Appeals (CA) has stopped an arbitration body from enforcing an order for the Provincial Government to pay a contractor about P100 million for projects implemented in the previous administration.

In a March 20, 2015 resolution, the CA 19th Division granted the writ of preliminary injunction sought for by the Capitol against the final consolidation award issued by the Construction Industry Arbitration Commission (CIAC) on Nov. 21. 2014, which favored the payment claim of contractor Duros Development Corp. (DDC).

The CA stated that it saw the need to grant the writ of preliminary injunction to prevent “grave and irreparable injury” on the Provincial Government while it determines if CIAC has jurisdiction over the payment claim made by DDC.

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Gov. Hilario Davide III decided not to pay the amount collected by DDC in relation to some projects it implemented for the Capitol during the term of then Gov. Gwendolyn Garcia.

Provincial Attorney Orvi Ortega said the projects were implemented without the authority of the Provincial Board (PB).

DDC brought the issue to the CIAC, which ordered the Provincial Government to pay DDC about P100 million.

Davide filed a petition for injunction before the CA.

CA issued a temporary restraining order last Jan 14 in favor of the Capitol. Last Friday, the CA granted a writ of preliminary injunction through a resolution penned by Associate Justice Luisa Quijano-Padilla.

DDC is among the 31 contractors that have collectibles with the Capitol in relation to projects implemented during Garcia’s term. Davide’s administration refused to pay them.

Provincial Accountant Marieto Ypil earlier said that the Capitol have P607.2 million in payables to 31 contractors.

Published in the Sun.Star Cebu newspaper on March 26, 2015.

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