DAVAO CITY — Mayor Michelle Rabat of Mati City in Davao Oriental has ordered the termination of the P25-million contract for the improvement of the FGR Park and Baywalk that was entered into and approved by the previous administration.
Rabat informed the contractor Coriolis Geostro Baldonado of the AVECS Corporation/10 Builders & Development Corporation of the cancellation in a letter, following the recommendation of the Mati City Legal Office and the City Administrator’s Office.
In a statement by the Mati City Information Office on Sunday, it was learned that the P25.813-million contract was entered into by then Mati City Mayor Carlo Rabat and AVECS Corp. on June 28, 2019 or two days before the latter stepped down from his post.
In terminating the contract, Rabat cited Republic Act 10964 or the Fiscal Year 2018 General Appropriations Act, that “funds which will remain unutilized as of December 31, 2019 shall be reverted to the National Treasury by the recipient cities.”
“Thus, to prevent inconvenience by both your firm and the city government, we are informing you that the contract executed on June 28, 2019 involving the improvement of the Mati Park and Baywalk Phase 1 is hereby wholly terminated,” Rabat told the contractor.
The City Legal and City Administration maintained that the contract was void because the “notice of award” was issued in the absence of “actual receipt of funds.”
Rabat said the funding for the project remains intact. (PNA)